Should there be a ban on buying more than one property

[lauren84]

There is a 15yr age gap between us. I have a family and so do they now. But the rift it's put on the family relationship is clearly there to see. They are bitter that I had cheap affordable housing back in 1999, sadly they were still at school.

I feel so sorry for them and fellow work colleagues who simply haven't got a cat in hells chance of getting onto the property ladder.

 

But don't worry eventually the bubble will burst. Remember what goes around, always....always comes around....ALWAYS!

 

Nobody gets through this life holding all the Aces, Nobody, that's why it's called Fate. Take Greed and Misery will follow...it always does in one form or another.

 

I have two mortgages.....it worked out more viable to move into rented and rent mine out to my sister - who has zero chance of buying a home at the moment and then 3 years later bought another. I am not greedy it has just ended up this way as at the time the houses where the first house was located just weren't selling and probably still not great now!

Edited June 8, 2017 by lauren84

[Danny_Boy]

LTB being a variation on BTL?

 

Have you actually looked into BTL at all? Is that really the best way to make the money work for you in retirement? What ROI do you think you can generate, and does it require you to actually work for it, ie deal with tenants, fix issues, find an emergency plumber at 1900 on a Friday night, etc...

I think BTL for small investors is a real dead end at the moment.

 

The market agrees with you Cyclone.

 

It can work well if you get the right house and then the right tenant though.

 

---------- Post added 08-06-2017 at 13:07 ----------

 

I have two mortgages.....it worked out more viable to move into rented and rent mine out to my sister - who has zero chance of buying a home at the moment and then 3 years later bought another. I am not greedy it has just ended up this way as at the time the houses where the first house was located just weren't selling!

 

A lot of people have done the same Lauren, lots of landlords out there due to circumstances and it would be unfair to punish them in my opinion.

[Cyclone]

I was in that situation, I sold up when the market recovered though, it simply doesn't make enough profit to be worthwhile. A single leaking roof, or a void month and the years profit is gone. And that was before the most recent changes meaning that mortgage interest is no longer an allowable expense and in the case of mrcharlie an extra 3% stamp duty charge for buying a 2nd property!

[lauren84]

The market agrees with you Cyclone.

 

It can work well if you get the right house and then the right tenant though.

 

---------- Post added 08-06-2017 at 13:07 ----------

 

 

A lot of people have done the same Lauren, lots of landlords out there due to circumstances and it would be unfair to punish them in my opinion.

 

Just a case of buying at the wrong time but closed bids in 2004/05 didn't help matters! I know a shell of a house that was up for £50,000 and ended up having an offer of £120,000! Not exactly sure whether the sale actually went through but if it did hey they got a free mouldy doughnut under the sink!

[geared]

I was in that situation, I sold up when the market recovered though, it simply doesn't make enough profit to be worthwhile. A single leaking roof, or a void month and the years profit is gone. And that was before the most recent changes meaning that mortgage interest is no longer an allowable expense and in the case of mrcharlie an extra 3% stamp duty charge for buying a 2nd property!

 

It depends if you're in it for profit or see it as a nest egg.

 

Alot of older folk are happy for the rent to cover mortgage payments, so in 10-15 years time the house will be fully paid off and that asset provides some security for them in later years.

[blackydog]

LTB being a variation on BTL?

 

Have you actually looked into BTL at all? Is that really the best way to make the money work for you in retirement? What ROI do you think you can generate, and does it require you to actually work for it, ie deal with tenants, fix issues, find an emergency plumber at 1900 on a Friday night, etc...

I think BTL for small investors is a real dead end at the moment.

 

Lots of reasons for BTL.

My first one was buying from my dad's landlady when she was desperate to sell, so I got a good price but it was a right dump.

Second one, I sold a few shares and was able to afford the deposit on another house that need full renovation. I liked the location of this one and had been looking at the area for years.

Looking again now, want to find something for when my kids grow up and they don't have £1m for a 2 bedroomed flat. It won't be anything first time buyers are interested in though. Any help I get towards the mortgage from rent will be a bonus.

[whiteowl]

LTB being a variation on BTL?

 

Have you actually looked into BTL at all? Is that really the best way to make the money work for you in retirement? What ROI do you think you can generate, and does it require you to actually work for it, ie deal with tenants, fix issues, find an emergency plumber at 1900 on a Friday night, etc...

I think BTL for small investors is a real dead end at the moment.

 

Haha - good spot, it was late though

 

You are right to suggest looking elsewhere as well but I'm struggling to find anything else that would give roughly 5% interest on my capital that my calculations suggest a BTL () would return.

[Cyclone]

You could look at Zopa or FundingCircle, I get better than 5% on both.

You could use the new innovative finance isa to wrap 20k immediately into a tax free wrapper, so you save 20% on it, compared to the rental income where you need to start doing self assessment and paying tax on the income.

 

I'd be surprised if you could really make 5% ROI on a rental at the moment though, and whether the time costs of being a landlord actually make it worthwhile for that return...

[geared]

I'd be surprised if you could really make 5% ROI on a rental at the moment though, and whether the time costs of being a landlord actually make it worthwhile for that return...

 

This.

 

5% seems quite generous, especially if you include stuff like maintenance, repairs and factor in the possibility of non-rent periods.

[blackydog]

You could look at Zopa or FundingCircle, I get better than 5% on both.

You could use the new innovative finance isa to wrap 20k immediately into a tax free wrapper, so you save 20% on it, compared to the rental income where you need to start doing self assessment and paying tax on the income.

 

I'd be surprised if you could really make 5% ROI on a rental at the moment though, and whether the time costs of being a landlord actually make it worthwhile for that return...

 

Isn't it Zopa that just closed to new subscribers?