Why BTL when market overpriced. Income and any gains are taxed. The housing market is in for a downward correction so why invest at present. If think housing market going up better invested in house builders for a geared investment. If holding in ISA free of CGT/income tax. If income required take out 3% capital pa which grossed up is a return of 5% at 40%. You can run a self select ISA for minimum costs.

My view is you seem a bit confused (sorry to be so harsh).

First off, if you can access property for £100k and get 6% yield why are you on this forum?

Secondly your assumptions re. future growth are just that.

Thirdly what on earth are you on about with the existing limited vehicle?

Fourth given your complicated arrangements do you not have an accountant who can advise you on the merits/disadvantages of incorporation wrt property management.

My opinion - BTL (residential property) has recently been a two track investment -

1. income (to cover ongoing costs) and

2. capital gains from increasing property value.

You will probably find that rental yields are at best net 4% (after all the costs others will have referenced, don't forget void periods and the liability to council tax falling on you) unless you bought the property a long time ago.

Is the game up? I don't know. If property prices freeze or go "NEGATIVE EQUITY" if interest rates rocket up then both 1. and 2. can be at risk.

On the other hand if you own a good deal of the equity (my BTL is 25% mortgage) then you get a tax break and you do have a physical asset. Not a share or a bit of paper or a promissery note, a place you could live in yourself.

So BTL still has a place in a balanced portfolio. I wouldn't start there though and I wouldn't enter the market now.

Hi J Swales,

When I was referring to 6% yield and 100K I was referring to the discussions on whether BTL was still worth the investment. Some say NO, some say yes. I was really implying, depending on whether you are leveraged, if so by how much will dictate whether its worth entering the BTL mortgage. When you say why on earth? You are implying others cannot deviate from the initial discussion. I tend to disagree. So I repeat, my point was, if you are not leveraged, then income will still remain, as you are not subject to interest rates. Capital values are only relevant if you aim like many, is to buy a property for capital value increases, whilst just covering the basic mortgage or interest only. I for one would not be in it for that. Income is income.

With regards to arrangements, I do have an accountant and I am seeking advice from other quarters before I do anything. It’s not complicated. I have a limited company with cash inside it. Let’s say 150K. Rather than take dividends out over say 3 years, 30K a year to minimise tax at standard rate, I am saying, I could set up a holding company, move the money into that and use the money to then buy the property. Build up the portfolio like that.

This is a forum not an accusation board on whether one is worthy of posting something you agree with or not. So just keep it calm and simple, unless I have somehow upset you.

Like anything, its about the strategy. Right now the leveraged game I think is game over. Take away the costs you can offset, which will be reduced, it will become harder. Failing that there are alternative investments, paying into a SIPP, getting 5-7% yield and paying tax on 20% of 75% of the capital at 55. Not bad either.

Today you can achieve LTV about 70% if you are able to “prove your worth”. According to https://tranio.com/trani..._investment_strategies/ a safe investment needs at least €100K. For example, having €300K you can buy a flat or a student accommodation expecting 5-7% yield for short-term rentals or 2-3% yield for long-term. Allow for that a residential property has higher liquidity than a commercial one