Is Buy To Let Worth The Effort In 2021?

Are you able to add a transcript of the video, for us that don't want to watch a video. No offense but to be honest if I have to watch a video to hear someone's opinion I don't bother. I would much rather absorb the written word.

Reply to the comment left by Colin Dartnell at 23/12/2020 - 10:16
I would say the same thing, as Colin.

I never find the time and patience to watch any videos on Property118. A well written article is much better and it can be processed at our individual pace!

I watched your video and found it thought provoking and share from my perspective a cautious view that I hope others may find useful to think about.
I have been around the BTL sector for a number of years not large but enough to enjoy life in my twilight years. I agree the situation for small Landlords is less advantageous than when I started out and have now disposed of all my properties bar one, this I intend to sell in the new Tax year. Part of the money I have re-invested in a new quality Commercial factory occupied by a company I own meaning to some extent I can control the income generated where I want it to land.
Now for the rub and I offer the wisdom of my years. Back in the early eighties I invested £200,000 cash in a Commercial building (re-furbished Offices in outer London) costing 430,000 the balance being mortgaged with Allied Irish Banks. For the first three years everything went well good Tenants and a generous excess of income over expenditure. Then disaster Thatcher downturn, increased interest rates, loss of Tenants, Council still requiring rates and a need to cover service charge of empty offices. Add to this the Bank calling in their Loan as they had decided to get out of commercial property lending. This forced me into re-financing at 12% as opposed to the original 3.5%. The perfect storm when you add into the mix it was impossible to sell.
Eventually I managed to sell and came out with £30,000 feeling very lucky not to have gone bankrupt.
My message is we are currently enjoying low finance rates but if history repeats itself in a few years we could be back where I found myself. For BTL if you are cash rich in a few years there will be plenty of bargain repossessions to pick up. For a Commercial purchase yes at the moment and I see this as the road forward (despite once saying I would never do it again) but with the caveat make sure it washes its face with a good slug of spare cash and most important of all stand by the old adage “only buy quality”.

I am really pleased to have at least one holiday let. Government grants totalling £11,334 so far, and looks like more grants to come if this tiering system continues, which looks likely at least until March. Sold one BTL property in October and hoping to sell one more BTL this spring. Will just be keeping two investment properties, my holiday let and my other property which is a long running arrangement as a company let. I will also be concentrating even more on the stock market where I understand the risks and the rules rarely change. IMHO BTL is finished for the small investor. Only perhaps suitable for companies who are not penailsed by the taxation system.

Reply to the comment left by Tony Southwold at 23/12/2020 - 11:42
Although I wouldn't necessarily thinks rates will go upto double digits again, I agree with your general premise Tony.

And I think the recent SDT holiday and threats of CGT increase indicate very clear carrot and stick from the government.....

The carrot was quite short, but was there for those that could read the mood music and a small golden goodbye for one of my tennants negated the eviction ban problem.

The stick, CGT, licensing and regulation could grow further if the government sees fit.

I thought the video was fine and was happy with the style and length. I agreed with the content and as a long term property investor have been using the BRRRR system since 1980 when I started up with a limited company, not just for tax purposes but also to ring fence the investment. I also have a few properties in my own name but for various reasons they do not cause a problem. To me the main advantage recently has been the low interest rates and also the availability of many different finance sources including bridging. My first deal was done at 19% and I had to beg my bank manager to get that. Also the 15% plus at the end of the 80s was no fun. Yes regulations have increased but much of that is a benefit as it improves the housing stock. I disagree with councils who just use selective licensing to raise money and impose punitive fines as a punishment rather than working with landlords to improve standards. I bought a number of properties in Leeds about ten years ago and selective licensing was very useful in improving the area and the council provided grants for property improvement as part of the deal.
I am still very positive about the future. There will be problems but with Covid many businesses are struggling just to survive and are in a much worse position than property. I have had to help a few tenants out but overall my rent roll has been unaffected.

The gov/councils are stuck for cash so have to get it from somewhere hence £30,000 - unlimited fines if a speck of dust should be found ! The homeless situation gets a lot of publicity but never a mention the gov' have caused a lot of it due to L/Ls getting out due to constant new regulations/fines. Standards need to be kept but the fines are not worth the risk. Ive said it before - I've sold one and tenant is now looking for a vacant park bench but there's none vacant!