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spyguy

A Fool And His Btl Portfolio

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A very good, honest and detailed assessment of running a BTL portfolio:

http://boards.fool.co.uk/not-sure-btl-adds-up-as-an-investment-13149029.aspx?sort=whole#13149029

'After fees, insurance, repairs and maintenance I have made 4.23% as a pre-tax return.'

The striking things about the poster's portfolio is:

1) All the houses are paid for; no leverage.

2) Of the 7 houses he has only had 1 months void over the year.

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A very good, honest and detailed assessment of running a BTL portfolio:

http://boards.fool.co.uk/not-sure-btl-adds-up-as-an-investment-13149029.aspx?sort=whole#13149029

'After fees, insurance, repairs and maintenance I have made 4.23% as a pre-tax return.'

The striking things about the poster's portfolio is:

1) All the houses are paid for; no leverage.

2) Of the 7 houses he has only had 1 months void over the year.

Well indeed, no capital gain, no point.

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A very good, honest and detailed assessment of running a BTL portfolio:

http://boards.fool.co.uk/not-sure-btl-adds-up-as-an-investment-13149029.aspx?sort=whole#13149029

'After fees, insurance, repairs and maintenance I have made 4.23% as a pre-tax return.'

The striking things about the poster's portfolio is:

1) All the houses are paid for; no leverage.

2) Of the 7 houses he has only had 1 months void over the year.

Well reading that thread it seems like very few see BTL as a good bet and they all seem clued up on investing in genral ,sort confirms what i have always, though,the average BTL`er has not got a clue ,the chances are they just jumped in after watching HUTH

I have said countless times, around my way any leveraged BTL entering the game after 03/04 are up the creek without a paddle, sat in their boat praying for HPI which has not materialised in the last ten years...can`t be long now before they realise they are going to have to swim for it

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Another post :

The BTL "adventure" has been mixed. I've made very little capital gain, believe it or not, and rents have only inched up despite what you might have read. I checked my latest let only this week - in ten years the rent has increased on a one bed house at a compound rate of 1.8%pa. Brilliant eh? And we as a group have to put with being slagged off as terrible landlords who exploit people; added to increasing legislation which seems designed to trip us up!

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Jesus, someone in that thread is trying to shill rental properties in Colombia as a safe and secure investment with a guaranteed 10% return.

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Why 7 houses?......should be hedging bets......one house and a number of other investments, surely putting all eggs in one basket case is asking for trouble especially when rents are reliant on jobs, solvent governments and growing wages.....and still require painting. ;)

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Jesus, someone in that thread is trying to shill rental properties in Colombia as a safe and secure investment with a guaranteed 10% return.

This one ? time to turn down the sarcasm filter :D

Is that all, you can get 22.3%, or a hassle-free 10% in this emerging rental market.

http://www.overseaspropertyalert.com/earn-hassle-free-10-ren...

If anyone needs more tips, I am offering a property seminar on how to become a property billionaire for a reasonably modest fee, line up.....

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Why 7 houses?......should be hedging bets......one house and a number of other investments, surely putting all eggs in one basket case is asking for trouble especially when rents are reliant on jobs, solvent governments and growing wages.....and still require painting. ;)

Depends. If their OOO and BTL make up less than 30% assets then he'll be OK.

Maybe he's very rich and has large number of other assets.

Edited by spyguy

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Depends. If their OOO and BTL make up less than 30% assets then he'll be OK.

Maybe he's very rich and has large number of other assets.

That's what I think. No BTL'er would talk down property unless they were in a position where they could just walk away from it.

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Depends. If their OOO and BTL make up less than 30% assets then he'll be OK.

Maybe he's very rich and has large number of other assets.

No probs then......already hedged, type of person you would want to rent from....one very careful solvent and reliable, look after your home as if it were theirs for a small fee. ;)

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Why 7 houses?......should be hedging bets......one house and a number of other investments, surely putting all eggs in one basket case is asking for trouble especially when rents are reliant on jobs, solvent governments and growing wages.....and still require painting. ;)

And that one house should be his primary residence.

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I know I say it myself but I think I bought pretty well. All repossessions so at below market price because the heating was drained down and the letterboxes screwed shut!

He was careful as I would have been, no leveraging & careful buying. So this seems the best BTL can offer. I'm glad I'm not in it.

Of course, if prices really did double every seven years as the Wilsons tell us they do, it could be worth it but the Wilsons talk rubbish.

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Jesus, someone in that thread is trying to shill rental properties in Colombia as a safe and secure investment with a guaranteed 10% return.

Hi

I think it was a facetious comment linking to an overseas-investment shill; anyway I followed the link: (http://www.overseaspropertyalert.com/earn-hassle-free-10-rental-yield-emerging-rental-market/)

and enjoyed this:

"Lee, if you were just now starting out, would you buy an apartment in Panama City or in Medellin, considering both ROI and capital appreciation? I’m looking at about 200k for my first overseas purchase. Thanks! William"
"That’s an easy question for me…although it really shouldn’t be. I’d go with Medellín.
[...]
The simple reason I’d pick Medellín is because I like it better. I enjoy the weather, the cleanliness of the city, the social life, cafes, and restaurants. And since I need to spend time in the city where my investment property is, I’d rather it be the one I’d enjoy the most."
Sounds like paradise. Its funny tho, Medellin used to be in the news regularly - I can't quite remember the exact reference...

:)

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That can't possibly be the case, apparently there is an HMRC 'dragnet' about to extract MILLIONS from landlords?!?!?

You can a a business losing cash and still have a tax bill.

HMRC are after undeclared income.

At the mo, BTLers can deduct the mortgage interest from their income.

But they still have to do a tax return.

Any BTL income over and above mortgage interest payment - not too many I agree - will be taxed at the LL's highest income bracket.

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That can't possibly be the case, apparently there is an HMRC 'dragnet' about to extract MILLIONS from landlords?!?!?

You can a a business losing cash and still have a tax bill.

HMRC are after undeclared income.

At the mo, BTLers can deduct the mortgage interest from their income.

But they still have to do a tax return.

Any BTL income over and above mortgage interest payment - not too many I agree - will be taxed at the LL's highest income bracket.

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While there are few other reliable means of generating a 5% yield around, BTL will continue to attract incestors.

Higher interest rates will reduce the profitability of BTL and reduce the incentive to invest.

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While there are few other reliable means of generating a 5% yield around, BTL will continue to attract incestors.

Higher interest rates will reduce the profitability of BTL and reduce the incentive to invest.

You mean a fake yield ignoring costs, effort, taxes, inflation and liquidity?

Nope. All comes down finance availability, zirp and qe. These will prop up house prices and btl until they end.

Edited by Si1

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