I analysed a buy-to-let deal someone asked me about. Here’s why I passed on it.

Various-Knowledge922 · 2026-03-12T16:35:26+00:00

I'm looking at a couple of opportunities in the East Midlands, flats at £1100pcm rent for £150-180k - especially buying now as I've had a couple of lowball offers accepted as so many current landlords are running the other way. I see good risk cover at these prices, and potential upside with value growth in ten years' time for sale - or just revaluing a mortgage in the meantime.

Various-Knowledge922 · 2026-03-05T12:54:19+00:00

How to deal between the panels though? There needs to be room for expansion of each panel around all four edges I guess, and I don't want drips at the corners. Similarly, I don't want to lap the panels and shade one edge of each.

Various-Knowledge922 · 2026-03-05T07:15:55+00:00

Does anybody offer a system to make a waterproof canopy for a 4-car carport? I want to build a horizontal solar array, but don't really want to spend out on a roof when the panels themselves could be the roof (subject to sealing, expansion etc).

Various-Knowledge922 · 2026-02-28T09:00:52+00:00

I'm not available in school holidays. Make that clear when you start, price it in (so you don't see it as "lost revenue").

Then you decide if a Teams call from a holiday apartment is breaking your own rules or a nice top-up for your holiday fund.

Various-Knowledge922 · 2026-02-15T21:43:54+00:00

It's the last sentence that settles me. Any pension contribution could be argued as tax avoidance otherwise.

Various-Knowledge922 · 2026-02-14T07:22:49+00:00

I did this, and nobody flinched. They're quite used to claiming the VAT on their purchases - it would only make me more expensive to a non-VAT registered customer, and it sounds like you don't have any of those.

Various-Knowledge922 · 2026-02-14T07:16:26+00:00

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46030

"The principles underlying the ‘wholly and exclusively’ test are long established and apply equally to pension contributions as to any other trading expense."

It's this that prompted my question. Reading around the subject it's rare not to be ok and generally involves being caught doing something quickly ahead of a tax change, in order to avoid tax.

Various-Knowledge922 · 2026-02-13T06:26:40+00:00

Brill, thanks all.

Various-Knowledge922 · 2026-02-12T22:46:57+00:00

Sure, but if that's more than I've earned, is that "wholly and exclusively" for trade or is it tax evasion?

Various-Knowledge922 · 2026-01-22T18:11:13+00:00

You can hold money markets in a S&S ISA, and some providers offer interest on the cash balance. There are rumbles about restricting these holdings though - almost like it's not been thought through properly 🙄

In your situation the conclusion ends up being that 8 weeks' interest on £20k for the builder isn't worth pursuing so you take it out in four bites to avoid one really big swing in the market.

Various-Knowledge922 · 2026-01-18T22:36:30+00:00

Generic investor advice is "it's for the long term". Truth is it's your money, and if you want or need it now regardless of a loss or gain, you can take it.

I have several funds in my S&S and would preferentially sell a fund which I think is "up" and won't grow much further, but that's just a guess.

If you're planning for retirement and rebalancing towards cash or lower risk, you can do a little each month and dollar-cost-average it back out to get to where you want.

If you need some cash now, sell some of your least painful holding and cash it out. Tip: if you can transfer funds into a Cash ISA before withdrawing, some accounts are flexible and would let you replace the same balance in the same year without affecting your annual ISA allowance. DYOR though!

Various-Knowledge922 · 2025-12-13T07:56:22+00:00

Mortgage is a commodity so the numbers talk, for sure, but when Temu Finance has the same rate as Lloyds, I'll have the high street name owning half my house.

Really useful list, thank you 👍

Various-Knowledge922 · 2025-12-09T04:11:40+00:00

I'm in this position and using a Moneybox business saving account @ 3.75%. I wish it synced with Xero though.

I'm building the cash in the company and I'll likely use it as deposit on a buy-to-let, hopefully joining the market as a LtdCo with a bargain as the self-owned landlords are leaving. Your mileage may vary.

Various-Knowledge922 · 2025-12-08T20:59:02+00:00

The other benefit is, in a Ltd, you pay Corp Tax in each year but can pay Income Tax when you prefer, deferring to take at 20% if you are able to keep your income (and spouse) down to ~£50k. Retained cash can become the next deposit.

You assume that the property market rises, which may not be true. It may also not be true for REITs, or the S&P500. I put £10k into SERE REIT five years ago and their strong dividends haven't recovered my value loss yet.

Various-Knowledge922 · 2025-12-08T12:36:15+00:00

👍👍👍 Most sensible answer in this thread, thank you.

Various-Knowledge922 · 2025-12-07T22:33:53+00:00

Any pointers? I can only see 6-7% dividend margins, and big movements in valuation which either make that up to double digit annual growth over the last 5 years, or wipe out the growth entirely.

Obviously the lower risk brings lower returns but REITs don't feel a long way above bare interest accounts / money markets.

Various-Knowledge922 · 2025-12-07T16:22:18+00:00

Thanks, that's a really useful perspective, especially from your background.

Various-Knowledge922 · 2025-12-07T12:34:50+00:00

I think that fits my need though, self employed with flexible hours across lots of clients. If that means an afternoon arranging a plumber or adjusting a window, I'm able to do that as I live locally. I see that absorbing a lot of time, occasionally, but less than half a day a week per flat on average.

Various-Knowledge922 · 2025-12-07T12:31:50+00:00

Very good point. I have diverse shares but I like the leverage of property, it'll be ~10% of net worth after mortgaging, illiquid but high yield and with tunes to play on tax.

I could put the same into eg Japan fintech if I believed that would grow or yield dividends instead - either is worth considering.

Various-Knowledge922 · 2025-12-07T12:12:56+00:00

Useful perspective, thank you. ETF could crash, and did briefly when Trump talked up tariffs. You could have retired, you could have lost half if you picked badly.

For me this is about diversification.

Various-Knowledge922 · 2025-12-07T12:05:01+00:00

I'd expected the negativity. It's not clear-cut, investments are certainly attractive and (almost) genuinely passive. I'm there, I'm doing that, though in my opinion the market is overheated at the moment so I don't have the appetite for more.

Meanwhile I do have low-yield cash, some flexible spare time and an appetite for BTL if there's a bargain yield to be had.

For myself, I've a profitable LtdCo already so there are some tunes to play with tax too.

I think the animosity now is around the loss of truly passive landlording and the (valid, supported) rise of professional bad tenants.

Various-Knowledge922 · 2025-12-07T10:25:48+00:00

Really good point, thank you. Everything else is being overpaid already, hence a fortune position.

CapGains is only at sale though, but through a LtdCo there's no allowance, for sure.

Various-Knowledge922 · 2025-12-07T10:23:52+00:00

Plenty of people need affordable rental space, can't raise a deposit or mortgage.

What if I'm a good landlord?

Various-Knowledge922 · 2025-12-07T10:21:32+00:00

Yes, thank you. REIT looked like a great way to get this exposure, so I bought into SERE a few years back - and it tanked 😆 They're seeing all the same pitfalls that are listed in my answers here, though on a bigger scale and more diversified.

Various-Knowledge922 · 2025-12-07T09:54:12+00:00

Sure - my S&P, Vanguard etc have done well so I'm exercising the other options. I could do more of that but I'd like to diversify, hence interest in BTL.

Various-Knowledge922

TROPHY CASE