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I now can't get the image of a wicked capitalist out of my head.
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I now can't get the image of a wicked capitalist out of my head.
Rachman?
I agreed to buy a new property in April LAST YEAR! Finally completed the deal Nov last year.
Buyer employed a shonkey solicitor who'd already been fine £15K (with a further £15K costs), then we had to find tradesmen to replace the two bathrooms, kitchen and utlity.
Wife found cowboys who left a leak behind the boxing that didn't manifest itself for a couple of weeks in adjoining rooms. Two months to dry out!.
I considered renting one property while we lived in t'other, but it wasn't practical. We're in our '70s.
May be in before Christmas, downhill with a following wind!
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<< It'll be paying for itself anyway as a BTL. Just think of the CGT for whoever the nex chancellor is.. LOL. >>
I hope it isn't in a coastal village in Devon / Cornwall where the few locals can't afford to live ... :-)
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Good luck with that and I say that sincerely not cynically. I have been chewing whether to invest in a BTL or not but eventually decided against it. You are taxed on the way in (stamp duty), when in (less mortgage relief and rent treated as income) and then when you exit at least 18% as capital gains. Then not being able to get the tenant out without going to court, agents fees, maintenance and inability to access cash when/if required and general hassle. With BTL mortgage rates as they are borrowers could be working just for the lender. Not forgetting the spectre of a labour government to kick the filthy capitalists, even more than the party of free enterprise that is.
I am considering a further investment in a Vanguard ISA, a mix of bonds and equities depending on risk appetite, 0.22% fees, money out within a week and a currently depressed stock market seems easier, pretty attractive and a sound diversification as well.
I sold a property last month and had a fantastic solicitor on my side, recommended by a friend, they were streets ahead of the numties the buyers used, well worth checking out these professionals before committing. Good luck with your purchase.
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MGspannerman, thanks for your comments. My intention is to pay the extra 10% off for the next 2 years (2 year fix0 then 1 day after 2 year fix ends pay off another chunk. then remortgage. then same again.
House bought in 5 years outright other flat 3.5 years. other one bought outright, but that was a lot cheaper.
we're not there to be wicked capitalists, but to protect the capital.
one tenant is currently 225 UNDER what we could get in rent..
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MGspannerman, thanks for your comments. My intention is to pay the extra 10% off for the next 2 years (2 year fix0 then 1 day after 2 year fix ends pay off another chunk. then remortgage. then same again.
House bought in 5 years outright other flat 3.5 years. other one bought outright, but that was a lot cheaper.
we're not there to be wicked capitalists, but to protect the capital.
one tenant is currently 225 UNDER what we could get in rent..
Often reducing a price you let means the place is never empty after a previous tenant moves out, and thus overall you probably earn the same or more (see next paragraph).
I think it also encourages the tenant to treat the property with more respect as they know they are getting a good deal, and want to keep the arrangement.
Seen that on my development where reasonable landlords rent out flats long-term on lower rents whilst others (same inside) try to get high rents but struggle to fill them with good tenants and often are empty for a good few months after a (normally shortish) let comes to an end.
Good for you!
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<< It'll be paying for itself anyway as a BTL. Just think of the CGT for whoever the nex chancellor is.. LOL. >>
I hope it isn't in a coastal village in Devon / Cornwall where the few locals can't afford to live ... :-)
no it isn't.
The last flat, has a good tenant, pays on time, tells us if a problem, we fix it, she keeps it impeccably tidy, and therefore no rent rises for the past 5 years. This one will be rented at a sensible rate too.
It isn't to make a profit on the rent, it is (as I said before0 the money is working better in that than at 0. something percent in a bank accout.
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<< It'll be paying for itself anyway as a BTL. Just think of the CGT for whoever the nex chancellor is.. LOL. >>
I hope it isn't in a coastal village in Devon / Cornwall where the few locals can't afford to live ... :-)
no it isn't.
The last flat, has a good tenant, pays on time, tells us if a problem, we fix it, she keeps it impeccably tidy, and therefore no rent rises for the past 5 years. This one will be rented at a sensible rate too.
It isn't to make a profit on the rent, it is (as I said before0 the money is working better in that than at 0. something percent in a bank accout.
The capital gain in the property is likely far more than you'll ever get via a savings account or even most stocks. My sister and BIL do this and have bought/sold their way up to a very large, expensive property (they just have one to live in) and will, if required, trade down on retirement and live off the proceeds in addtion to any banked monies.
This should be fine for most people as long as your original investment was not in the past 3-5 years, so any tanking of the market which may occur in the next year or two may have far less of an impact if the value of the property needs to be realised.
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"The last flat, has a good tenant, pays on time, tells us if a problem, we fix it, she keeps it impeccably tidy, and therefore no rent rises for the past 5 years. This one will be rented at a sensible rate too.
It isn't to make a profit on the rent, it is (as I said before0 the money is working better in that than at 0. something percent in a bank accout."
That's pretty much my situation, though I have just the one property I let out. I have excellent tenants (a married couple) who pay rent without fail on time and even offered to pay more when work-from-home started, on the basis that they would be pushing up the energy bills a bit (I pay all bills except phone).
I kind of inherited the property, there is no mortgage on it and as I don't wish to get involved in the stock market it makes sense to collect rent on it. The value of the house has rocketed, it being in a desirable price band, and I get a steady extra income.
I do realise I am incredibly fortunate and I hope I'm a good landlord - I don't take it all for granted. I try to get any problems fixed within days.
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I try to get any problems fixed within days.
Part of the secret is having good tradesmen Plumber is my neighbour, electrician close by too. Painter is a neighbour too, if needed.
Edited by _ORB_ on 17/07/2022 at 20:39
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I try to get any problems fixed within days.
Part of the secret is having good tradesmen Plumber is my neighbour, electrician close by too. Painter is a neighbour too, if needed.
Now that's good fortune! Finding quality, reliable and trustworthy tradesmen (and a lot of other professionals*) at a reasonable price is hard these days.
I forgot to ask (and if you don't mind) - where are you moving to, given you're currently not that far from me, in the West Suffolk area, if I recall. Will you be still in the area and thus be able to make use of your current local tradesmen or will you have to start all over?
* I used to go to the dentist and barbers in my parents' home town for a good few years after I moved out, despite them being an 37 miles drive away.
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I forgot to ask (and if you don't mind) - where are you moving to, given you're currently not that far from me, in the West Suffolk area, if I recall. Will you be still in the area and thus be able to make use of your current local tradesmen or will you have to start all over?
Andy, We are not moving, It is a buy to let flat just near by, about 15 miles, but in a lovely location, semi rural but close to a large town. We will be staying in Colchester, as that is where Dr Youngrrovergirl works at the hospital, The flat is share of freehold and managed by the flat(s) owners, so maintenaince is low.
On the subject of dentists, we still go to Ealing Broadway, where the dentist is, as he is "a top man". It's £95 a consultation, plus whatever costs. He did my Molar implant during phase 1 of the Covid pandemic, and can always fit us in quickly.
But if you do fancy a pint, email via moderators and I'll look if you say on here.
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I forgot to ask (and if you don't mind) - where are you moving to, given you're currently not that far from me, in the West Suffolk area, if I recall. Will you be still in the area and thus be able to make use of your current local tradesmen or will you have to start all over?
Andy, We are not moving, It is a buy to let flat just near by, about 15 miles, but in a lovely location, semi rural but close to a large town. We will be staying in Colchester, as that is where Dr Youngrrovergirl works at the hospital, The flat is share of freehold and managed by the flat(s) owners, so maintenaince is low.
I was under the impression that the latest laws on BTL properties was making it a lot harder to go or stay in that 'business'. What's your experiences? I won't be able to afford to go in, but it's interesting to see how things have and will change. A previous BTL owner in my flat block sold up his holdings during 2020/21 to realise his portfolio and moved nearer to his daughter - though he is well past retirement age.
He was the one I spoke of who, like you, didn't charge anywhere near the 'market rate on rent and thus always had his flat let and with good tenants. I saw him (he was also a feloow resident director for many years) pop by when some work was needed on the property
On the subject of dentists, we still go to Ealing Broadway, where the dentist is, as he is "a top man". It's £95 a consultation, plus whatever costs. He did my Molar implant during phase 1 of the Covid pandemic, and can always fit us in quickly.
I only changed barber from my old home town to my current one because the guy passed away; my current dentist ain't that good, but the old one's (who retired) practice now is fully private and I couldn't justify the expense any more, including the 70 mile round trip - though I always combined that with a visit to my parents.
But if you do fancy a pint, email via moderators and I'll look if you say on here.
Might not be a bad idea, given recent high tensions on the forum. I think there was talk of meet-ups a year or two before the pandemic but it never came to anything. I also wonder if there's any 'car events' where Backroomers can drop by and say hello to eachother / share a drink / check out eachothers' cars when the event is not too far away.
I certainly don't wish to leave the site if possible. It might be good to both chew the fat (about nothing controversial), including anyone having ideas for me over a new career (and possibly locale) after I got fed up with Building Services Engineering.
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Stock market is for those who know what they are doing, and property (with a hefty deposit ) is still a safe investment.
Depends where it is - and when. Some of my forebears, who 100yrs ago lived and worked in certain areas of Bradford, Dewsbury and Birmingham, would disagree.
For those who do not want the hassle of owning houses and feel that their acquisition/hoarding is societally corrosive, investing in things that actually aim to create wealth is preferable. If you don't know what you are doing, buy shares in selected investment trusts which pay those who do from their fees. It continues to amaze me that we allow people to own as many houses as they like wherever they like - tragic for some communities. The current absurdly high prices would rapidly drop to a sensible level if people were limited to a maximum of three houses/flats each, with forced auction if necessary and no loophole of company ownership.
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Stock market is for those who know what they are doing, and property (with a hefty deposit ) is still a safe investment.
Depends where it is - and when.
It is a few miles away from Colchester in a good location.
For those who do not want the hassle of owning houses and feel that their acquisition/hoarding is societally corrosive, investing in things that actually aim to create wealth is preferable. If you don't know what you are doing, buy shares in selected investment trusts which pay those who do from their fees.
If you look at the troubles of some investment trusts in recent years having difficulty in repaying their customers/investors...
It continues to amaze me that we allow people to own as many houses as they like wherever they like - tragic for some communities.
It is a free society, where those who wish can invest where they want to.
The current absurdly high prices would rapidly drop to a sensible level if people were limited to a maximum of three houses/flats each,
We're still under that limit, at least for the next 12 months
with forced auction if necessary and no loophole of company ownership.
Many of the housing trusts have large portfolios act as companies and are run to make a profit, and also have very well paid executives.
One example in Battersea in London was Peabody demolishing some social housing to build and sell flats as well as having less social housing on that site.
Finally, If i have property, under English law, it is mine. I can sell if i want and I can set a fair rent too.. In fact I have offered it to the tenant of 1 flat, who wants a larger flat, at £150 BELOW what i could achieve,
After taxes etc we are getting about 4% return plus the value of the properties increasing.
HMRC are about to get about £5K in the process.
Edited by _ORB_ on 20/07/2022 at 16:56
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