The BIG question in Saturday’s Financial Times
was
Can you Still make money from Buy-to-Let?
Last week I was fortunate to be invited by the Financial Times to contribute in the article they were writing about investing in the Buy-to-Let market. Their main thoughts here were to say that it seems to be coming more difficult to make money from UK property. Suggesting Tax changes have squeezed landlords profits. They also asked was the popular amateur strategy of buying nearby property with the aim of supplementing retirement, still an option. Or do you need to scale up and become incorporated? Also will Renters Rights’ bill, expected this summer, effect the situation.
The article was quite interesting and the people they interviewed and quoted had quite a mixed view. Some where struggling , some where ok and then of course there was me that was very much ” Yes Yes Yes , Property investing all the way !!!”
There is definitely evidence that some landlords are selling up and have decided that were they are now with current changes and future changes such as the EPC rules, is making it the right time for them to exit the property investment market.
Data shows that just 1 in 10 properties were bought by landlords between January and April this year. That is the lowest level since 2007.
Between 2007 and the peak in 2015, the proportion of homes bought by buy-to-let investors grew from 10 per cent to 16 per cent, according to Hamptons data.
To be honest most of the article is about how much tax has changed, costs have gone up and new legislation is effecting landlords and suggests that those with three or fewer properties, who still comprise the majority of landlords, have seen the tightest financial squeeze and are most likely to be selling up.
Having much more than 3 or 4 will also create a much better income and reduce and hardship from these things. Great accountants and Tax advisors are also very important.
Well those of you who know me and know that proper education and support in any industry is the most important way to do anything , not just property! Will understand why I am excited about the future in property.
I have been investing in property since 2004 and I still believe it is a great opportunity if you do it correctly. I recently bought a property in March, which is now fully rented, and I am always looking for the next opportunity.
Where most people may see this article as a negative and reasons not to secure your future with investment property, i see it as OPPORTUNITY !!
Yes opportunity , we are now entering into a period where there will be a lot more property for sale at Below Market Value (BMV).
So you can offset the extra costs and tax changes if you buy , set yourself up and learn correctly with these BMV purchase!
So come on people secure you future , have investments that grow and something you can pass down to whoever you want to helping secure their future too and on it goes !
If you want to have a chat get in touch with me i am always happy to talk property !
If you wanted to read the article you can find it at s at https://www.ft.com/content/b3cec52b-8d69-4338-8cdb-10c14887bf34
If you can’t access the article send me an email and i can send you a pdf of it
