UK Landlord Forum / Life

There is an age old argument between buying in a less affluent area with a higher yield or an opulent area for more capital gain.

However, in the post Covid world, tenants are struggling to make end meet. The division between the have and have not had widen considerably.

The very policy meant to protect the tenants I.e eviction ban and revision on section 21 make you think twice in investing in certain areas for higher yield. Section 24, future capital gain tax review and various licensing fees also reduce the expected return.

It is becoming harder and harder to become profitable even with a ltd and spv set up. All you need is a tenants who does not pay, it would wipe out all gain and the legal proceedings will only cost more.

What is your strategy? Would you be moving to acquire properties in more upmarket area? (to reduce risk from tenants' default but at the expense of reduced yield)

Is there ways where we can also help the less well off? (and have our mortgage cost covered)

Judging by your name,I am assuming this is a philosophical and ethical  question that you are wrestling with,rather than seeking advice before you make a BTL decision? I don't do strategies,I stumble through life winging it,and making and learning from mistakes the hard way.One thing is sure,whatever choice you make,profits from letting.whether rental yield or capital appareciation,always take a great deal longer to accumulate than you initially expect.I ended up with properties which are at the low rental end of fairly affluent towns,because I wanted to get several quite quickly,and that is the only way I could afford to do it.I was lucky,and lucky timing cannot be planned for. There is a Jewish saying,"Man plans,God laughs". I agree with that.