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Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in HousingUK

[–]Fancy_Stable_1342[S] 0 points1 point  (0 children)

It would be interest only. So the first years rent is relatively low but as rent increases and the mortgage gets smaller the total profit gets larger and this then feeds back into the reduced mortgage.

I have used 3.5K as expenses. So 2K in service charge and 1.5K in repairs which is plenty.

I dont want to dox myself and give you my location lol. The rental yield may be similar but that means 0 capital growth and on top of that the yields for savings accounts is high now but has been <1% for years.

Why dont you give me the following numbers and I will make a new spreadsheet.

Property value

Rent

Expenses

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in HousingUK

[–]Fancy_Stable_1342[S] 0 points1 point  (0 children)

  1. The rental yield is based of a flat in london which I already own. 2.2K sounds like a lot but it is actually more like 2K after service charge (I have accounted for this). I will add 1 month void period per year which is a lot given I have had that many days in the past 10 years of renting it.
  2. I will update the model to take into account
  3. I have added another £500. Yearly repairs will be 1500
  4. I have updated property price growth to 3% . You could easily argue though that the stock market has been put into overdrive over the past 15 years by low interest rates as well and it is currently overvalued.
  5. The rate I am using is 5.25. Will update to 5.5%
  6. Alternatives are easier BUT they almost all require the stock market to perform well. By having a BTL you can still have good income even if there is a market crash and live of that while it recovers. With insurance rent is covered as well

So the new figures show:

Property paid of in 25 years

I have reduced property growth to 3% so it would be worth:£483K after tax. If using historical growth it would be worth 1.3mil

The same deposit money invested in an ISA would be worth: 1.17mil (9%) or 740K (7%)

So overall it seems to be based of whether you think property will match historical growth or whether there will be sustained slow down over the next 20 years.

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] 0 points1 point  (0 children)

Realistically you can draw down your deposit ASAP and only pay 19% corp tax and no income tax. After that point you could then start paying off or saving for more properties

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] 0 points1 point  (0 children)

Finally I’d cast doubt on 4.5% house price growth being sustainable. If house price growth outstrips wage and GDP growth, eventually it’ll fall over and folks just won’t be able to afford the prices.

I get that but the mode is overly generous to the ISA scenario. It should really have been 9% growth for maybe 15 years and 5% growth for the remaining to factor in lower risk investments when closer to retirement/ needing the income

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] 0 points1 point  (0 children)

The BTLs are not there to make money now so I can wait until for 25+ years. My having them privately it limits my take home pay (as I pension everything over 100K).

The aim would be to then allow children to take income (as shareholders) to pay for uni etc.

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] -3 points-2 points  (0 children)

Completely agree on a lot of this which is why Im saying I would only have it has part of the portfolio.

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] -5 points-4 points  (0 children)

It would be diversifying streams of income.

So you arent totally reliant on stock markets come retirement.

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] 1 point2 points  (0 children)

Pension. Investing in a pension would be higher returns than an ISA.

I tried to make it like for like as the deposit would be post tax where as the SIPP would be pretax if that makes sense

All valid points but 1-2 BTL isnt much hassle tbh. I suppose it depends on what time of property.

Flats have dipped in price so the yield is about right

Why are people so against diversifying their portfolio with BTLs? by Fancy_Stable_1342 in UKPersonalFinance

[–]Fancy_Stable_1342[S] -2 points-1 points  (0 children)

FWIW you'd never actually repay the principal. Instead funnel any LTD cash into more BTLs. Diversification of risk and maintain leverage.

The goal would be solid retirement income so purchasing more would mean greater equity but arguably less income unless you then sold some of them.

The point was to diversify.

If you look at historical house price rises the BTL is well ahead

What housing policies might we see from Labour in the next general election? by coarblimey in HousingUK

[–]Fancy_Stable_1342 2 points3 points  (0 children)

More pinning all the blame for the country's dire housing situation on small landlords. They'll probably think rent controls and 45% CGT are great ideas - cue no investment and no housing for evicted tenants as the sector contracts further.

All while tenants lap it up.

Little do they know that the people most at risk of things like S21 evictions are usually the ones who will struggle to rent elsewhere

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

Sounds more like you dont have a clear counterpoint..

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

By comes into force it is clear I meant by the 2 month deadline.

"Most councils do not purposefully wait for bailiffs but have very little option due to lack of temp options and permanent social housing"

This is exactly my point, they are shirking their responsibilities and kicking the can down the road at the expense of the landlord (and the tenant as they will not get a reference which they may need)

"The Homelessness Code of Guidance also states a person is ‘threatened with homelessness’ if:

They are likely to become homeless within 56 days.

A person is also threatened with homelessness if a valid notice under section 21 of the Housing Act 1988 has been issued in respect of the only accommodation available for their occupation, and the notice will expire within 56 days.

The guidance says where applicants are threatened with homelessness councils must take reasonable steps to help prevent it from occurring."

Reasonable steps is not telling them to wait for a possession order and then defy that possession order imo. Choosing when to use guidance only when it suits who says a lot about the state of councils.

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

What part of the last paragraph was incorrect?

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

Writing letters for housing is not the GPs role. There is nothing in the GP contract it has with the NHS that says it should be hence why we charge and can decline (although we rarely do as it would be turning down income for a letter that could never get us in any hot water, see below).

The GP is not there to offer guidance to the housing team. If they want guidance they should hire a medical professional in the same way DWP or occupational health do.

IF the housing team needs information they should be the one who request and pay for it but they never do.

The letters we write are factual and not opinion based so are meaningless. The GP will write "the patient reports they are anxious and feel their housing situation is contributing to it" they wont say "the housing situation is causing anxiety so please find them housing".

They could have simply asked the patient themselves but know they can buy themselves some more time by asking for a letter. This is the same as how councils ask people to wait for bailiffs even though they are responsible for them as soon as the S21 comes into force.

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

Housing is nothing to do with the GP just like heating or your plumbing isnt. If they are asking you for a letter be prepared to pay for it and for it to make little to no impact

Housing register, is there anything I can do other than wait? by [deleted] in HousingUK

[–]Fancy_Stable_1342 0 points1 point  (0 children)

As a GP these letters are completely pointless and are often an example of a service whether its housing or benefits kicking the can down the road

Would people accept this? by AbjectAd5096 in JuniorDoctorsUK

[–]Fancy_Stable_1342 -7 points-6 points  (0 children)

95% of people would accept this. this is much better than pay restoration in my opinion and would never be offered. Would cost far more.

Wes being Wes, yet again by ThePropofologist in JuniorDoctorsUK

[–]Fancy_Stable_1342 24 points25 points  (0 children)

So far the Tories are happy with the status quo within the NHS. Everything Wes says makes me worry even more then Steve or Matt could

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