Any reasons not to cave into the fear?

Reply to the comment left by DSR at 18/10/2022 – 18:39
Landlords with large portfolios can absorb the bumps in the road, which is where BTL is being pushed.

I kept a £1.2m house in London empty for 18 months due to S24, until I could sell.

Reply to the comment left by david porter at 18/10/2022 – 08:34Thank you David, really wise advice. I agree with you to survive these difficult times, meet the challenges and ride the storm, not giving up! My motivation is to offer homes that people want to make their long term family home.

Reply to the comment left by DSR at 18/10/2022 – 10:44
Thanks DSR I needed to hear the true “reality” of all this. I plan on using a letting management agency to find good/great tenants with guarantor. My hard earned savings are funding these investments. The legislation feels wobbly at best. I hope the pound recovers soon.

Reply to the comment left by Simon Lever – Chartered Accountant helping clients get the best returns from their properties at 18/10/2022 – 12:57
Thank you Simon, I’m going to set up the limited company first with a specialist property tax accountant company. Quotes setting up company circa £1,000. Ongoing fees I’ve received so far are really expensive – between £2-3,000 pa.

Thank you Simon. Plan to set up the limited company first via a specialist property tax accountant. Quotes setting up company circa £1,000. Ongoing fees received so far are really expensive – between £2-3,000 pa. Or is that reasonable?

Reply to the comment left by NewYorkie at 18/10/2022 – 13:32
Hi NewYorkie, I’m sorry to hear of your ordeal. If you don’t mind me asking why did the eviction cost you £21K? I heed your warning about fear/property investment now. Trying to be as careful as possible. Thank you for posting your message.

Reply to the comment left by Yvonne Francis at 18/10/2022 – 16:09
Thank you Yvonne. I’ve been educating myself as much as possible, reading articles, websites like this one Property 118, attending webinars, watching YouTube videos by property investors and learning the terminology. It’s very helpful to hear real life experiences such as yours, the reality and actualisation of property investment. As a new starter, I think maybe starting with a property investment company to set up my initial portfolio until I gain more knowledge and experience to become more independent later on. I am cautiously optimistic by nature. Thanks again.

Reply to the comment left by SARBJIT SEHMBI at 19/10/2022 – 02:07
with that comes more cost. You need to factor agent costs in too, and sorry to sound like a real doom merchant…..agents aren’t all they are cracked up to be either!
Bearing in mind that any licencing requirements or legal requirements that need to be met, will ALWAYS find themselves thrown back to the ultimate property owner/Landlord.

Get some landlord training maybe as a first port of call just to see what is involved before you take the jump. At least then you know what your agent is also supposed to be doing or not doing before you put your trust fully in them.
Good Luck!

Do not pay 2 to 3k a year for someone to run the company.
I’ve got 8 rentals and spend no more than a few hours a month dealing with repairs/admin
Find good agents and pay between 7 to 10% management

Caveat Emptor – Buyer Beware – only make an informed decision.
Headline tips on buying; 1. buy Freehold or if leasehold, only buy a long lease with low non-incremental ground rent & check no onerous clauses within the lease 2. if leasehold check when section 20’s were last carried out for block maintenance (pointing, roof etc) and redecoration internally/externally plus age of lift etc because even if no s20’s are pending, they could roll round within 2-4years after you buy 3. only buy EPC rated C or above properties, 4. research best tax adviser to set up a Ltd Co & do yearly accounts at sensible fees 5. research areas where demand is always high & best gross yield & capital growth, 6. if requiring a mortgage wait until SWAP rates come down & are reflected in lenders product pricing 7. make sure you have sufficient funds to pay upfront costs such as SDLT, solicitor & valuation fees, mortgage lender fees if applicable, kit & fit the place out with white goods & furnishing if to be let furnished, possibly redecoration, tenant find fees & referencing fees plus R2R checks & a possible void with utility costs & council tax due during void period, deposit registration fees, plus Inventory fees (and check out fees in due course). 8. allow for time/cost of Making Tax Digital 9. Unless an accredited Landlord, you may not be allowed to let out a property in the not-too-distant-future 10. Then you need to allow for letting agents fees to manage the property ranging anywhere between 6-15% plus any other fees charged for renewal etc, mortgage interest, buildings & rent guarantee insurance, Public Liability Insurance if a flat in a block as block buildings insurance does not cover this if let out, Contents Insurance if quality goods, surprises from Councils if for example buying a freehold house beware Councils are on the rampage to get property owners to pay for dropped kerbs & associated costs, plus boiler, plumbing, drains cover & white goods cover is recommended, ICO registration re GDPR, Service Charge & Ground Rent if leasehold, Selective or Additional or HMO licences every 5years, EPC every 10years, Gas Safety checks annually, Electrical tests every 3-5years & all C1&2’s need addressing in order to pass, Smoke & Carbon Dioxide & Heat Alarms, Portable Appliance tests yearly or at worst every 24mths, and for ongoing repair/redecoration costs & external maintenance plus winter checks such as clear guttering & no loose or missing roof tiles & managing condensation issues such as needing to install special units & fans & pest control costs as/if & when – the list goes on. For everything after smoke alarms I suggest you put aside an additional 10% of the rent if a new property 10-15yrs old & 20% for older properties & if not all used in any one year, roll over as another year could be costly e.g new boiler, roof, leak damage etc. Lastly is the impact on the bottom line yet tbc as a result of the Renters Reform Bill which includes the abolition of Section 21 no-fault evictions, introduction of Periodic Tenancies from day 1, Lifetime Deposits, an update on the Model Tenancy Agreement to allow tenants the right to keep a pet, regular PATs for all supplied appliances, rent review notice periods, minimum housing standards by widening the Decent Homes Standard to include the PRS, mandatory Ombudsman membership, new Property Portal.
I’m sure I’ve missed things but these are the headlines to build into your decision making & planning.