Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Well who needs tenants any more?
+ Reply to discussion
Options
Cameron Jake
Posted: 31 October 2021 13:06:56(UTC)
#1

Joined: 11/12/2017(UTC)
Posts: 139

Thanks: 131 times
Was thanked: 92 time(s) in 44 post(s)

Forget the markets, just buy a property and then re sell it 4 years later, who needs the hassle of BTL and tax when you can just make £25,000 - £50,000 a year on a property.

These are stats in Swindon - for two new builds.

Looking at these I could buy a 500k house and in ten years it will have doubled in price without my setting foot in it.

https://ibb.co/G2jGPMy

Back to top Quote
2 users thanked Cameron Jake for this post.
Keith Cobby on 31/10/2021(UTC), Mr Helpful on 31/10/2021(UTC)
Keith Cobby
Posted: 31 October 2021 13:28:25(UTC)
#2

Joined: 07/03/2012(UTC)
Posts: 5,063
Sounds like a good plan, BTS!
Back to top Quote
Newbie
Posted: 31 October 2021 14:14:20(UTC)
#3

Joined: 31/01/2012(UTC)
Posts: 3,818

Thanks: 6012 times
Was thanked: 7026 time(s) in 2603 post(s)
Cameron Jake;192602 wrote:

Forget the markets, just buy a property and then re sell it 4 years later, who needs the hassle of BTL and tax when you can just make £25,000 - £50,000 a year on a property.

These are stats in Swindon - for two new builds.

Looking at these I could buy a 500k house and in ten years it will have doubled in price without my setting foot in it.

https://ibb.co/G2jGPMy


That what has happened to one of mine.

Bought for £174k in 2005
Sold for £325k this month.
This is not a good return ! Primarily as the buyer was the tenant themselves, but;

The deposit was £28k
The Gross gain is £ 151k
The tax is circa £25k
So net gain is circa £125k.

Then lets not forget the rental income - £950p.m (which is lower than the market rate of circa £1100) vs a mortgage payment of £375 on which only pay 20% tax despite being a super income tax payer of 45%.
On top financed twice to release more cash from banks.

To me the tenants are house sitters to stop anyone else occupying the property.
Back to top Quote
 |  Edit by user
1 user thanked Newbie for this post.
Fig Lee on 19/01/2022(UTC)
Mr Helpful
Posted: 31 October 2021 16:13:29(UTC)
#4

Joined: 04/11/2016(UTC)
Posts: 3,985

Thanks: 6173 times
Was thanked: 6988 time(s) in 2761 post(s)
Cameron Jake;192602 wrote:
Forget the markets, just buy a property and then re sell it 4 years later, who needs the hassle of BTL and tax when you can just make £25,000 - £50,000 a year on a property.
These are stats in Swindon - for two new builds.
Looking at these I could buy a 500k house and in ten years it will have doubled in price without my setting foot in it.

Plainly if past is prologue, then the golden trough has been found !!
~[ 8- () ]
Back to top Quote
 |  Edit by user
1 user thanked Mr Helpful for this post.
bill xxxx on 31/10/2021(UTC)
jonathan rowe
Posted: 01 November 2021 19:11:12(UTC)
#5

Joined: 30/03/2018(UTC)
Posts: 176

Thanks: 48 times
Was thanked: 302 time(s) in 120 post(s)
The only problem is that you may have to go to Swindon.
Back to top Quote
4 users thanked jonathan rowe for this post.
Tim D on 01/11/2021(UTC), ANDREW FOSTER on 19/01/2022(UTC), McorcGreab on 19/01/2022(UTC), Forestbhoy on 07/09/2024(UTC)
MBA MBA
Posted: 01 November 2021 19:24:04(UTC)
#6

Joined: 16/12/2012(UTC)
Posts: 1,725
As someone who has just moved house to the biggest - but not especially nice - house in a nice part of London I fully expect that in 10 years the value of the house will be exactly what I paid for it a few months ago.
Back to top Quote
Lex Further
Posted: 18 January 2022 21:59:06(UTC)
#7

Joined: 18/09/2021(UTC)
Posts: 181
Didn't think of that this way. I have tenants in my flat. Still very pleasant to receive a good amount of money for everyday needs. Only previous months i was able to order a good quality new tv. I called thane uk phone number and got i professional consultation on this site too about available options and think i made a right choice.
Back to top Quote
 |  Edit by user
jeffian
Posted: 18 January 2022 23:07:06(UTC)
#8

Joined: 09/03/2011(UTC)
Posts: 954

Thanks: 808 times
Was thanked: 2222 time(s) in 632 post(s)
I'm not sure I follow the argument. Why not have both the capital growth and the income while you're waiting (plus the income will cover the inevitable repair, maintenance and insurance)?

The argument seems to be 'I could have had more but I couldn't be @rsed'!
Back to top Quote
1 user thanked jeffian for this post.
Tim D on 19/01/2022(UTC)
jeffian
Posted: 18 January 2022 23:08:18(UTC)
#9

Joined: 09/03/2011(UTC)
Posts: 954

Thanks: 808 times
Was thanked: 2222 time(s) in 632 post(s)
MBA MBA,

I'm prepared to take the other side of that bet!
Back to top Quote
philip gosling
Posted: 19 January 2022 14:24:58(UTC)
#10

Joined: 06/01/2013(UTC)
Posts: 1,191

Thanks: 221 times
Was thanked: 1814 time(s) in 762 post(s)


If you buy a leasehold flat in London (most are leasehold) it does increase in capital value but service charges are often very high, then mortgage then insurance etc so renting it out makes much more sense even with the hassle that often comes with estate agents and tenants over maintenance , repairs and voids etc.
Back to top Quote
1 user thanked philip gosling for this post.
kim shillinglaw on 16/03/2022(UTC)
2 Pages12Next page
+ Reply to discussion

Markets

Other markets