Buy to let was good when property was cheap , now it isn't , and stamp duty hurts landlords
Pension or property
- Thread starter Grassman
- Start date
- Location
- Scottish Highlands
Losing mortgage interest allowance didn’t help either.
Sons young friend bought a back street house 3 years ago for £108k spent £10k & just sold it for £210k. he seems to think it's better than a pension.
- Location
- Scottish Highlands
That’s not an investment though, it’s running a business as a property developer and will cost him tax now. I don’t want income that gets taxed this side of retirement, I want growth that give me a fund to continue to pay me up to the upper tax threshold when I stop working.
No but if he wants to he can put some of the profit into a pension, if had been paying into a pension from three years ago he wouldn't have been able to make the interest payments so easily, I think if you are enterprising when young pension payments can make it harder to get ahead.
- Location
- Scottish Highlands
There’s certainly a danger of over-saving and killing cash flow, but I’ve never regretted the early payments and the compounding they’ve had.
More multi millionaire property folk than pension millionaires
Hilly
Member
- Location
- Scottish Borders.
Ive paid a pension since i was 16 .
- Location
- Radnorshire
Accountant’s advice years ago was better to invest in yourself, than pay into a pension, especially on borrowed money.
- Location
- Cumbria
Don't be so ridiculous.
Stepping up to band c is hardly the end of the world.
As with most things, if the cost is prohibitive there is no end of support.
- Location
- Cumbria
On average income, he would have to pay about £19k CG tax. Still out performs any pension by a million miles.
it's not over
Member
- Location
- thunder rd co.antrim
You need to factor in spinning the wheel of fortune,property and pension can go down as well as up
- Location
- Scottish Highlands
You've forgotten the heap of tax he paid to get the £108k in his bank in the first place, along with quite a few other costs I'm sure. Probably wouldn't be as far different as you think.
And let's be honest houses don't often double their money like that.
- Location
- Scottish Highlands
That's because the lifetime allowance means you stop paying in when you get enough to give you £1M in your pension.
glasshouse
Member
- Location
- lothians
Property could be on a big downer with the russian money being pulled out..
Bit like lloyds collapse thirty yrs ago
Bit like lloyds collapse thirty yrs ago
- Location
- South Wales UK
Could be Lloyds issues again as Russia seized aeroplanes there too recently???
- Location
- Northumberland
I have 2 rental properties. They are low band Es and I guess they would each cost well over 100K to make a decent fist of bringing up to C (would need entirely gutting- new everything!) -they are 100yr old farm cottages; long narrow and all external walls. If you spend so much, you can get an exemption for a period, but then you’d likely have to keep going back and having another go, which is difficult if you’ve got sitting tenants.
The support available tends to be repayable loans, which I’m not interested in.
Just spent 20+ months evicting a couple during covid. Not fun, but at least I COULD evict them. The repeal of S21 (which will come shortly) would make that impossible!
I don’t disagree with putting money into bricks and mortar, but in my case I don’t wish to plough 200-300K into attempting to make silk purses out of sows ear houses- I hope to demolish the houses and build a nice modern house to use as a holiday let instead.
Hilly
Member
- Location
- Scottish Borders.
property job is never as good as many make it out to be imo, like horse racing you only hear of the winners their are many loosers .
- Location
- Northumberland
The other thing to remember is that, economically things will probably get much worse before they get better. There’s a squeeze on rental housing availability and this will deepen as the EPC issue means that some housing exits the sector (some to holiday let’s, maybe some to first time buyers).
This means that for landlords with decent (high EPC) properties, there may be good money to be made as rents continue to increase… BUT… that economic squeeze is likely to hit folks on lower incomes worst. Landlords were portrayed as money-grabbing b@stards during covid, and their normal rights were suspended. I can also see this energy/food/housing crisis being ‘bad’ for landlords as the Govt can be seen to be being ‘good for working people’ (etc etc) at little cost to itself by accelerating the coming reforms and adding in eg. rent controls to ensure landlords don’t ‘profiteer’ (ie. don’t take advantage of usual supply/demand market controls). Also by making it harder to pick and choose your tenants (ie rejecting those who live on benefits).
I can see it being a bumpy ride for landlords in the coming years!
This means that for landlords with decent (high EPC) properties, there may be good money to be made as rents continue to increase… BUT… that economic squeeze is likely to hit folks on lower incomes worst. Landlords were portrayed as money-grabbing b@stards during covid, and their normal rights were suspended. I can also see this energy/food/housing crisis being ‘bad’ for landlords as the Govt can be seen to be being ‘good for working people’ (etc etc) at little cost to itself by accelerating the coming reforms and adding in eg. rent controls to ensure landlords don’t ‘profiteer’ (ie. don’t take advantage of usual supply/demand market controls). Also by making it harder to pick and choose your tenants (ie rejecting those who live on benefits).
I can see it being a bumpy ride for landlords in the coming years!
- Location
- Cumbria
We also have a cottage, and we have done exactly what your faced with. If it's an old farm workers cottage(s) I assume they are 2 bed. We stripped all the outside wall plaster off ourselves, and got a local plasterer to put up Kingspan Insulated sheets, re-insulated the lofts ourselves and had new windows fitted. Bought a complete s/h kitchen off ebay including all electric items and a local chippy installed it bespoke to our layout, new bathroom units bought from Amazon and ebay installed by me and the local plumber.
Fully re-decorated by us, and let for 50% more than what we were charging prior to the improvements.
Rewired, new plumbing and central heating using some s/h and refurbished items (boiler and heating pump).
Screwfix, Toolstation, ebay and Amazon, along with a local building supplier for all the goods, total bill for everything was around £24k.
The increase in property value is double that.