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Do i do this ??

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« on: September 06, 2020, 08:50:17 AM »

good morning guys and girls

My name is neil and i have just signed up here.

We are hoping to get some advice from here!

Currently thinking about let to buy. I have had a morgage broker give us the figures of what we could earn from renthing my house out, and taking equity and buying new house to live in.

Is it rude to ask you guys what clear profit you make from one property?

This house is a 3 bed terrace with garage and off road parking. Fully renovated all within last 7 years.

Rental price is recommended to be 1250 a month.

Take away 400 morgage,
Landlord Insurance of im guessing 20 odd pounds?
Letting agents 10% is 125

Then can i assume whats left after that is now taxed? So we left with 560 a month from it. Does that sound right or have we missed anything?

Any help would be greatly recieved!

Many thanks

Neil
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« Reply #1 on: September 06, 2020, 10:25:11 AM »

Can you afford the bad case scenario of having a non-paying tenant for multiple months (say 6-12 months)?
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« Reply #2 on: September 06, 2020, 01:07:43 PM »

There are a lot more unknowns... and knowns. Gas Safety Certificate costs, Electrical safety certificate costs, the black hole that is the SDLT kicker, the way your capital is tied-up (because 400 a month mortgage must accompany a large deposit, right? Or is it an Interest Only?)... and then maintenance that you might not predict any of right now, but will surely arise. Whether the rent is achievable or not is another question... 1,250 sounds quite a lot but depends where you are.

I know I got into this lark quite some time ago... it seemed like a good idea then and it has served me quite well... however, would I do the same thing today? That's a question I cannot answer with an emphatic "yes". I think there's a lot of uncertainty. I currently have 2 Tenants in some form of arrears... Covid-19 and job related issues... they're manageable at the moment... and there's not much I can do either... but I'm crossing my fingers no more start to run into trouble (and these are not people at the lower end of society). But interesting times may still be a-coming...

I'd probably keep my powder dry for the time-being.
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« Reply #3 on: September 06, 2020, 03:10:13 PM »

Can you afford the bad case scenario of having a non-paying tenant for multiple months (say 6-12 months)?

Yes if that happened immediatly then it would be tight...

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« Reply #4 on: September 06, 2020, 03:12:10 PM »

There are a lot more unknowns... and knowns. Gas Safety Certificate costs, Electrical safety certificate costs, the black hole that is the SDLT kicker, the way your capital is tied-up (because 400 a month mortgage must accompany a large deposit, right? Or is it an Interest Only?)... and then maintenance that you might not predict any of right now, but will surely arise. Whether the rent is achievable or not is another question... 1,250 sounds quite a lot but depends where you are.

I know I got into this lark quite some time ago... it seemed like a good idea then and it has served me quite well... however, would I do the same thing today? That's a question I cannot answer with an emphatic "yes". I think there's a lot of uncertainty. I currently have 2 Tenants in some form of arrears... Covid-19 and job related issues... they're manageable at the moment... and there's not much I can do either... but I'm crossing my fingers no more start to run into trouble (and these are not people at the lower end of society). But interesting times may still be a-coming...

I'd probably keep my powder dry for the time-being.

Many thanks for your input.

Yes the 400 is an interest only deal.

Yes the uncertainty of whats going on at the moment is a concern. I have no rush to do it so can always wait a while if need be.

How much are the safety certs and how often are they required to be done?

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« Reply #5 on: September 06, 2020, 10:14:20 PM »

How much are the safety certs and how often are they required to be done?

Kind of depends on where you are.  ;)

Gas safety is annual, less than 100. Electrical would be more, but only every 5 years. Energy Performance is every 10 years. These are all things you need to take into account when working out your potential profit/margin. Don't forget repairs. Things will fail, and you'll be responsible for some of it. Refurb at the end of a tenancy. Tenant reference check (you can't charge the tenant for those anymore)? If you're using an agent, they're going to want to charge you for finding a tenant as well.
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« Reply #6 on: September 07, 2020, 12:31:13 PM »

Government is already getting their heads together to think about how to recoup the Covid debt where they've pissed money up the wall in their wisdom... that debt will come onto the broadest shoulders (to an extent)... I find it quite strange how Landlords are perceived as being that... you can be sure the burden won't fall onto mega-corporations or the truly rich... by definition it can't fall onto the poorest, so get ready for some new interesting legislation where Landlords are targeted with some kind of increased tax burden. I still say that it is a complete inability for Landlords to effectively work - and protest - together that allowed Government to introduce a tax regime whereby the cost of borrowing isn't considered a fully allowable expense... unlike any other business... this population is an easy target. I still say it is a sign of how meek our 'representative bodies' are when Government can say Tenants can take rent payment holidays (saying - untrue - that is mirrored by mortgage payment holidays) and then leave Landlords to try and mop-up the fall-out by arranging suitable payment plans when their Tenants have gone and pissed their rent money up the wall... something thinking a rent holiday meant free months. I still say we all collectively rolled-over when Government made our population effectively become part-time UK Border Agency workers whereby it was our responsibility to conduct Immigration and Right to Rent checks... opening ourselves up to uncomfortable conversations on pain of fines (illusory, probably). I still say it was exploitative for the SDLT kicker to be introduced and treat Landlords (who, if you have the notion of a PRS in your country, are a kind of public service) like cash cows who shunt thousands each into the HMRC coffers with a mournful "moo"!

Would I say - "go for it, welcome to the club"? - probably not. If there's a property price crash, then maybe... only then. For now I'd step back and watch. Obviously you have to start somewhere and that's usually with one property, right? But one property can bring you down financially... it's when you get multiple that you can be less scared of the boiler breaking in one (2,000), or a fence blowing down (900)... because you can spread your expenses and profits across them.

I have one Tenant, 600 in arrears at the moment - Covid-19 related - who WhatsApp'd me over the weekend, asking me if I had any other properties... they want to move on to something "nicer"... but want to keep me as a Landlord because "I'm nice" - they say "nice" a lot... I calmly replied that I had nothing available (and kept to myself that if I did I'd not be rushing to take them on again) and reminded them the arrears needed to be fully cleared before the tenancy ended. This seemed a [nice] surprise to her. I'm unsure whether she realises she's now on UC and despite there being guidance or laws on discrimination for "no Benefits", it still exists in practice.
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« Reply #7 on: September 07, 2020, 12:35:00 PM »


Currently thinking about let to buy. I have had a morgage broker give us the figures of what we could earn from renthing my house out, and taking equity and buying new house to live in.


Why let-to-buy instead of buy-to-let? I can see why somebody whose job it is to sell mortgages might be keen on the idea, but what's in it for you? Is your current home likely to be hard to sell but easy to let? If you weren't planning to move house anyway, would you be considering investing in a buy-to-let at the moment?
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« Reply #8 on: September 07, 2020, 01:52:31 PM »

Just everything about this sounds a bit daft to me. If you have equity in your own house,I would be trying to get my own mortgage paid off asap. It does seem that the govt. are anti the typical landlord on here,but very much engineering things to help the big corporate landlords. I am sorry to sound negative, but this is a time to hunker down,and be grateful for what you have already.House prices are currently holding up well in many areas,but that could change quickly too.Hippogriff always says,and he's right,that landlords are in a people business.People are even more unpredictable,insecure,than before. I must say" No,don't do this".   
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« Reply #9 on: September 08, 2020, 10:12:35 AM »

I feel a bit bad about my response above.If you really want to become a landlord,I would follow Simon's suggestions.I do not regret buying the rentals I have,and have made money,but timing is everything.This feels wrong to me at present,but if you go ahead I really hope it goes well.You are not daft, but I have seen the results of the advice given by some mortgage advisors.A friend has been enabled by such advice to build a really precarious house of cards for herself and her family.
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« Reply #10 on: September 08, 2020, 03:30:40 PM »


Rental price is recommended to be 1250 a month.

Take away 400 morgage,
Landlord Insurance of im guessing 20 odd pounds?
Letting agents 10% is 125

Then can i assume whats left after that is now taxed?




Your assumption is incorrect. You are taxed on the total rent of 1250, so if you are a 20% tax payer you will be paying 250, and 40% @ 500 per month. Bear in mind you could be earning in your PAYE job in the high 30k mark, so then another 15k pa of rental income will fall into the 40% bracket.

on the 40% scenario:

1250 rent
250 tax
125 LA management fee
400 mortgage

= +475

take away insurance, gas cert etc.

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« Reply #11 on: September 11, 2020, 07:55:03 PM »


Currently thinking about let to buy. I have had a morgage broker give us the figures of what we could earn from renthing my house out, and taking equity and buying new house to live in.


Why let-to-buy instead of buy-to-let? I can see why somebody whose job it is to sell mortgages might be keen on the idea, but what's in it for you? Is your current home likely to be hard to sell but easy to let? If you weren't planning to move house anyway, would you be considering investing in a buy-to-let at the moment?

Its because we have out grown this house. So yes we would be moving anyway

We have spent so much cash on the house, new roof, boiler, rewire, bathroom, kitchen, flooring and carpets etc.

This house in this area sell like hot cakes and tbh its defo better than most
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« Reply #12 on: September 11, 2020, 07:56:07 PM »

How much are the safety certs and how often are they required to be done?

Kind of depends on where you are.  ;)

Gas safety is annual, less than 100. Electrical would be more, but only every 5 years. Energy Performance is every 10 years. These are all things you need to take into account when working out your potential profit/margin. Don't forget repairs. Things will fail, and you'll be responsible for some of it. Refurb at the end of a tenancy. Tenant reference check (you can't charge the tenant for those anymore)? If you're using an agent, they're going to want to charge you for finding a tenant as well.

Thanks for this. Cheaper than i expected
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« Reply #13 on: September 11, 2020, 07:57:57 PM »

Government is already getting their heads together to think about how to recoup the Covid debt where they've pissed money up the wall in their wisdom... that debt will come onto the broadest shoulders (to an extent)... I find it quite strange how Landlords are perceived as being that... you can be sure the burden won't fall onto mega-corporations or the truly rich... by definition it can't fall onto the poorest, so get ready for some new interesting legislation where Landlords are targeted with some kind of increased tax burden. I still say that it is a complete inability for Landlords to effectively work - and protest - together that allowed Government to introduce a tax regime whereby the cost of borrowing isn't considered a fully allowable expense... unlike any other business... this population is an easy target. I still say it is a sign of how meek our 'representative bodies' are when Government can say Tenants can take rent payment holidays (saying - untrue - that is mirrored by mortgage payment holidays) and then leave Landlords to try and mop-up the fall-out by arranging suitable payment plans when their Tenants have gone and pissed their rent money up the wall... something thinking a rent holiday meant free months. I still say we all collectively rolled-over when Government made our population effectively become part-time UK Border Agency workers whereby it was our responsibility to conduct Immigration and Right to Rent checks... opening ourselves up to uncomfortable conversations on pain of fines (illusory, probably). I still say it was exploitative for the SDLT kicker to be introduced and treat Landlords (who, if you have the notion of a PRS in your country, are a kind of public service) like cash cows who shunt thousands each into the HMRC coffers with a mournful "moo"!

Would I say - "go for it, welcome to the club"? - probably not. If there's a property price crash, then maybe... only then. For now I'd step back and watch. Obviously you have to start somewhere and that's usually with one property, right? But one property can bring you down financially... it's when you get multiple that you can be less scared of the boiler breaking in one (2,000), or a fence blowing down (900)... because you can spread your expenses and profits across them.

I have one Tenant, 600 in arrears at the moment - Covid-19 related - who WhatsApp'd me over the weekend, asking me if I had any other properties... they want to move on to something "nicer"... but want to keep me as a Landlord because "I'm nice" - they say "nice" a lot... I calmly replied that I had nothing available (and kept to myself that if I did I'd not be rushing to take them on again) and reminded them the arrears needed to be fully cleared before the tenancy ended. This seemed a [nice] surprise to her. I'm unsure whether she realises she's now on UC and despite there being guidance or laws on discrimination for "no Benefits", it still exists in practice.

Thanks hippo for your input.

Why do you say yes if theres a property price crash? If i leave 25% in this property then that could mean negative equity?
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« Reply #14 on: September 11, 2020, 08:02:05 PM »

I feel a bit bad about my response above.If you really want to become a landlord,I would follow Simon's suggestions.I do not regret buying the rentals I have,and have made money,but timing is everything.This feels wrong to me at present,but if you go ahead I really hope it goes well.You are not daft, but I have seen the results of the advice given by some mortgage advisors.A friend has been enabled by such advice to build a really precarious house of cards for herself and her family.

Dont feel bad for your input mate. I joined this forum for real advice and insight. And you guys are giving it to me and for that im truely greatful.

Im looking at this as a longterm gain idea.

1st year save all rental profit into a pot. That would hopefully then allow us in 2nd year to pull that profit in to assist paying off new morgage

Then maybe in 10 years if property values keep going the way they are then id hope to make 100k on the value of property so could sell then... or go for another 10 years.
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« Reply #15 on: September 11, 2020, 08:04:38 PM »


Rental price is recommended to be 1250 a month.

Take away 400 morgage,
Landlord Insurance of im guessing 20 odd pounds?
Letting agents 10% is 125

Then can i assume whats left after that is now taxed?




Your assumption is incorrect. You are taxed on the total rent of 1250, so if you are a 20% tax payer you will be paying 250, and 40% @ 500 per month. Bear in mind you could be earning in your PAYE job in the high 30k mark, so then another 15k pa of rental income will fall into the 40% bracket.

on the 40% scenario:

1250 rent
250 tax
125 LA management fee
400 mortgage

= +475

take away insurance, gas cert etc.

Thanks for this. Since i posted my op i had since found out this.

How do you guys pay the income tax? Ive heard some set up a company, and some use the wifes income to pay the tax. My mrs is part time and doesnt earn enough to pay tax at mo
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« Reply #16 on: September 12, 2020, 11:38:05 AM »

Thanks hippo for your input.

Why do you say yes if theres a property price crash? If i leave 25% in this property then that could mean negative equity?

I didn't say "yes", I said "maybe"... I'm urging you to watch and wait... I realise the excitement of it all might preclude that being an option for you... but there's a good time to get on the bus, there's a bad time to get on the bus and there's the worst time... I am pondering to myself whether this is just about the worst time to get on. Take a look at a few YouTube videos out there (from Brits) espousing the opinion that 2021 is going to be carnage. For me the maybe comes about because I am typically a cash buyer... no equity isn't the biggest concern I have - it's the exchange of capital for an income stream. If there's a crash and I can pick up a modest property for 90,000 that was typically 120,000 before... then I could be tempted to take a run at that. I am missing a bungalow in my portfolio... and the thing is I have a set of ready-made Tenants to go into such a property, who would stay until the bitter end (rent paid by pension rather than employment, so very safe)... so that's my own position, but even knowing that I am watching and waiting... certainly not jumping right now.

Anyway, those YouTube videos make for an interesting listen... it'll use up 45 minutes of your life... but there's several folk saying 2021 will make 2008 look like a molehill. If you are listening to every bit of advice coming your way I wouldn't ignore this because you feel you have no choice. You have the choice to not end up with a millstone around your neck and huge amounts of stress if you are unlucky with a bad Tenant.

If houses there sell like hot cakes and it's better than most... I'd at least be giving that a shot... the multitude of offers you predict might easily turn your head... and you can always test the water with it.
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« Reply #17 on: September 12, 2020, 06:11:41 PM »

How do you guys pay the income tax? Ive heard some set up a company, and some use the wifes income to pay the tax. My mrs is part time and doesnt earn enough to pay tax at mo

A company probably isn't going to be worth it for just the one property. You've got the hassle of setting it up and doing all the annual admin, the transaction costs of selling the house to the company, and an even more restricted range of mortgage providers who are prepared to lend.

It is worth assigning some or all of the beneficial ownership of the property to your wife. Look up Declaration of Trust and/or speak to your solicitor about it. For the most part, there are no tax consequences to a gift between husband/wife/civil partner and husband/wife/civil partner but stamp duty can catch you out if you're not careful how you treat the bit with the mortgage attached, so seek professional advice. If the property is in joint names then HMRC assumes the income is split 50:50 but there's a form to vary that if your actual ownership split is different.
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« Reply #18 on: September 12, 2020, 06:35:34 PM »

Thanks alot hippo.

We are very concerned about whats going on in the world right now and what effect it could have on the letting idea.
We are more than happy to wait it out a little and see

I must admit... i hardly seen any messages on this forum of how good it is to do...hownprofitable it is etc.
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« Reply #19 on: September 12, 2020, 07:20:32 PM »

We have spent so much cash on the house, new roof, boiler, rewire, bathroom, kitchen, flooring and carpets etc.

This house in this area sell like hot cakes and tbh its defo better than most

If it's an easy sell, then I'd sell it. Look at at this way: if you weren't moving anyway, would you go out today and buy a house to let it out? Hippogriff is right*: property prices are being propped up by low interest rates and, to some extent, the stamp duty holiday, but once the current wave of redundancies starts to bite, and the Covid crisis drags on, and Boris's half-baked oven-ready deal ends up giving everyone the shits, we're in for a bumpy ride. If I were in your position, I'd be looking to minimize my exposure and concentrate on paying down the mortgage on my own home.

It's not as if residential property is that good an investment. Yes, house prices are a British obsession but look at the rental market: there are no really big players. It's the equivalent of the grocery market being all independent corner shops with no Tesco or Sainsbury in sight**. Why is that? It's basically because, in the long term, the money's not worth it. On an individual level***, or in the short term, you can make a bit, but it evens out over time****. The rewards for your investment of capital and effort are unspectacular. If you don't believe me, look at the historic numbers for the housing market versus, say, the FTSE100. Nine times out of ten you'd be better off putting your money in a passive fund. So why do people go for BTL/LTB? Well, a) if you want to buy 250k of shares but you've only got 50k of cash, then good luck going to a high street bank and asking them to lend you the rest, and b) you've lived in a house, so you understand the property market, right?***** - whereas the stock market is a mystery, albeit a mystery that doesn't ring you on Christmas Eve to say the lavvy wants unblocking ... again.

Don't get me wrong: I'm not saying being a landlord isn't worth it: I genuinely find it interesting and enjoyable, and the property I've got is a steady earner, but I wouldn't buy another at the moment.


*Almost invariably: it's positively tedious.

**It's not a perfect analogy: people tend to champion small independent shops but as a small independent landlord you can find yourself having your balls squeezed by both the Government and the banks and still somehow end up being less popular than either of them.

***N.B. As with any investment, it helps to know when to invest, and when not to.

****Every week, somebody wins the lottery, but nobody wins the lottery every week.

*****and I should be a gyneacologist, given I've encountered so many c...ontemptibles.
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« Reply #20 on: September 12, 2020, 07:45:34 PM »

We have spent so much cash on the house, new roof, boiler, rewire, bathroom, kitchen, flooring and carpets etc.

This house in this area sell like hot cakes and tbh its defo better than most

If it's an easy sell, then I'd sell it. Look at at this way: if you weren't moving anyway, would you go out today and buy a house to let it out? Hippogriff is right*: property prices are being propped up by low interest rates and, to some extent, the stamp duty holiday, but once the current wave of redundancies starts to bite, and the Covid crisis drags on, and Boris's half-baked oven-ready deal ends up giving everyone the shits, we're in for a bumpy ride. If I were in your position, I'd be looking to minimize my exposure and concentrate on paying down the mortgage on my own home.

It's not as if residential property is that good an investment. Yes, house prices are a British obsession but look at the rental market: there are no really big players. It's the equivalent of the grocery market being all independent corner shops with no Tesco or Sainsbury in sight**. Why is that? It's basically because, in the long term, the money's not worth it. On an individual level***, or in the short term, you can make a bit, but it evens out over time****. The rewards for your investment of capital and effort are unspectacular. If you don't believe me, look at the historic numbers for the housing market versus, say, the FTSE100. Nine times out of ten you'd be better off putting your money in a passive fund. So why do people go for BTL/LTB? Well, a) if you want to buy 250k of shares but you've only got 50k of cash, then good luck going to a high street bank and asking them to lend you the rest, and b) you've lived in a house, so you understand the property market, right?***** - whereas the stock market is a mystery, albeit a mystery that doesn't ring you on Christmas Eve to say the lavvy wants unblocking ... again.

Don't get me wrong: I'm not saying being a landlord isn't worth it: I genuinely find it interesting and enjoyable, and the property I've got is a steady earner, but I wouldn't buy another at the moment.


*Almost invariably: it's positively tedious.

**It's not a perfect analogy: people tend to champion small independent shops but as a small independent landlord you can find yourself having your balls squeezed by both the Government and the banks and still somehow end up being less popular than either of them.

***N.B. As with any investment, it helps to know when to invest, and when not to.

****Every week, somebody wins the lottery, but nobody wins the lottery every week.

*****and I should be a gyneacologist, given I've encountered so many c...ontemptibles.

Many thanks for another helpful post.

We have to move because we have out grown this house. I can just moce and be done with it. Or do this let to buy and still move to a bigger place, and yet rent this out and get the rewards of it over 10, 20 or even 30 years??
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« Reply #21 on: September 12, 2020, 09:21:24 PM »

I can just move and be done with it. Or do this let to buy and still move to a bigger place, and yet rent this out and get the rewards of it over 10, 20 or even 30 years??

It's not binary. There's a third option:

Sell now, and use the equity to get the best possible mortgage rate for your new home. The roof over your (and your family's) head is your first priority. Concentrate your efforts on paying the mortgage down for a few years while other suckers lose their shirts in the crash. Then, when prices are lower and the Government's throwing incentives at people to buy, remortgage your home and use the capital for a deposit on a nice little renter - whatever does well near you - with neutral and hard-wearing decor, that you're not emotionally invested in, just a box for making money.

If, in a few years' time, you find that you're not keen on the idea of remortgaging your home to play on the property market, then that should tell you something about your attitude to risk.
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« Reply #22 on: September 12, 2020, 09:32:18 PM »

Or if you think the market going to crash soon, sell now & move, rent somewhere until the crash, THEN buy.
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« Reply #23 on: September 12, 2020, 09:42:55 PM »

I can just move and be done with it. Or do this let to buy and still move to a bigger place, and yet rent this out and get the rewards of it over 10, 20 or even 30 years??

It's not binary. There's a third option:

Sell now, and use the equity to get the best possible mortgage rate for your new home. The roof over your (and your family's) head is your first priority. Concentrate your efforts on paying the mortgage down for a few years while other suckers lose their shirts in the crash. Then, when prices are lower and the Government's throwing incentives at people to buy, remortgage your home and use the capital for a deposit on a nice little renter - whatever does well near you - with neutral and hard-wearing decor, that you're not emotionally invested in, just a box for making money.

If, in a few years' time, you find that you're not keen on the idea of remortgaging your home to play on the property market, then that should tell you something about your attitude to risk.

Many thanks Simon. I think that could be a better option. And this means i could move and make use of the stamp duty offer.

Hmmm food for thought
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« Reply #24 on: September 13, 2020, 10:24:15 AM »

We are very concerned about whats going on in the world right now and what effect it could have on the letting idea.
We are more than happy to wait it out a little and see

I am sizing up gold options... can you believe the exact same Metalor cast gold bar of 100g can range in price from 5,046 to 5,375? All for the exact same thing, delivered to your door. People go for property because it feels real and it feels like a means to get to something approaching a passive income... people say it's for their pension because - wait for it - their pension is broken... because the world is broken. I have had a pension since I was 23... it's worth something, right... but the projected annual income from it is derisory, so several years ago I went into property because I was moving and had the option to not sell up... I then carried on because I actually liked it... it's more than a cold, calculated investment. I don't use Agents. I enjoy the DIY aspects to things... there are things I can't do and need Trades for, but each year there is more and more I can do. When a Tenant has a problem of some kind you - usually, hopefully - positively impact their life by getting involved and actually resolving that problem for them. That can be gratifying. Rather than my work - which pays quite a lot but is questionable in its value to society (in the extreme, I'd say). Another example of a broken world.

Yet, Landlords... while on the very edge of providing a required public service... quality homes for reasonable money to those that need them - are hated by most Tenants and all the "not-haves" in society, and milked by the Government. It can be depressing. I couldn't recommend it... if I were you I would say to myself - "well, I did my research and I can say I'd be better off just being normal - sell my house and buy the one I want to live in"...

This is not to dissuade Landlord competition entering the fray... we really couldn't care less about what you get up to... it's genuine advice you're getting. No-one here is pushing you on, right? Saying that it's a "no brainer"... advising you to get yourself a Swiss bank account to store all your imminent wealth in... nah, we're saying... probably don't do it... we're saying... get ready for a world of pain... we're saying... be aware of what's going on in the world and be careful. You're getting good advice... don't romanticise being a Landlord.

To me, right now, you seem hooked on the idea... it's either now, or soon... but not not.
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« Reply #25 on: September 13, 2020, 10:27:18 AM »

If I had known back in the 90s, what I know now about pensions... I would have not joined my company pension scheme and I would have directed funds to property for an extra 10 to 15 years, when it was the good times too. Now..? Not as clear-cut, even though pensions have not improved, property has certainly disproved, or unproved... or unimproved, disimproved? Disunimproved.
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« Reply #26 on: September 13, 2020, 03:42:41 PM »

I would still advise any tenant, with the money for a mortgage deposit,to buy their own place to live in.All investments fluctuate and are vulnerable,but equity in bricks and mortar is still generally a good idea long term. It is the idea of someone becoming a landlord for the first time in the current climate that troubles me. I heard a quote from a book on the radio "The sum total of all human wisdom can be summed up in three words-Wait and Hope". With regard to being a landlord.the saying attributed to a German officer rings true-"No plan survives contact with the enemy". The enemy being bad tenants.They can really wreck your finances and your peace of mind,and walk away unscathed.
Newbie
Posts: 12

I like property

« Reply #27 on: September 13, 2020, 07:08:58 PM »

Hippo and heavy karm, i appreciate your input and advice. You all have kinda scared me into leaving it for now lol
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