Adviserman

Registered with Property118.com
Wednesday 2nd May 2018


Latest Comments

Total Number of Property118 Comments: 2

Adviserman

15:15 PM, 10th August 2019
About A year ago

Should I sell or take a Lifetime BTL mortgage ?

Some useful stuff here, well argued. As an Accountant and IFA, who has also been a part time landlord, I would add the following :
1. Liquidity : you can't just sell the kitchen if you need, say, £10,000 for a new roof, and the public are the last to know when a property crash is approaching; 2. in Stock Market crashes, you rarely lose all your money if you have invested in pooled funds ( EG. unit trusts, OEICs, IT's ) 3. what rate of Interest is charged by the Eq Rel provider - how long before your capital is used up ? 4. Risk on Stock market investments can indeed be reduced by diversification ( Vanguard are indeed very good, very big and very cheap ) 5. Investment Bonds allow a 5% tax free withdrawal every year, with the tax payable being deferred for 20 years; they can also be low risk as well if that is preferred. 6. Yields on BtL property in the North are far higher than in the South, especially London - someone already mentioned this. 7. Even the Tory Govt have declared war on Landlords. If Corbyn gets in, nothing is safe, especially "second properties ". I would sell the London property and go for a hybrid of property and Stock Market based investments to provide some certainty and confidence ( property ) and also flexibility and liquidity ( stockmarket based ).... Read More

Adviserman

10:11 AM, 11th May 2018
About 2 years ago

Return on Investment or Capital Employed Formula?

You need to deduct Income Tax at your highest rate ( or Corporation Tax if via a Ltd Co ) and remember the new, more punitive regime whereby you can't offset all the mortgage costs against your profits. Thus, Buy to Let in your own name is less profitable than it was a few years ago.... Read More