Property as investment: Still a good idea?

trendie

Legendary member
6,533 1,126
How many have property as one arm of your diversified investments?
Buy to Lets?
With new laws reducing mortgage payments as deductibles, is it still worth keeping a portfolio?
I must be something of a misanthrope, as I hate dealing with people directly, :), so wonder if I should off-load my properties.
Also, is Saddiq Khans push for rent-control a worry for those of you in London?
(I am out in the sticks, so don't give a hoot.)
 

Trader333

Moderator
8,599 931
Whilst you have a situation where the number of people requiring a place to live exceeds the ability to supply that demand (ie a basic supply and demand market) then property investment makes sense. However, I would not consider buy to let personally and would only buy outright and then let. We have a bizarre situation with regards to the buy to let market as it is the only business I can think of where you can now be taxed on a loss since being unable to offset interest costs as a legitimate business expense.
 

J_C_Anderson

Active member
131 24
It all depends on the meaning you use for "property".
If we talk about real estate, it requires large initial capital and sometimes lacks liquidity. As an alternative, you can invest in REIT.
If we talk about movable property, the most interesting approach would be to invest in antiques (like painting or other things), but it requires deep knowledge and understanding of the market.
 

trendie

Legendary member
6,533 1,126
It all depends on the meaning you use for "property".
If we talk about real estate, it requires large initial capital and sometimes lacks liquidity. As an alternative, you can invest in REIT.
If we talk about movable property, the most interesting approach would be to invest in antiques (like painting or other things), but it requires deep knowledge and understanding of the market.
property as in real estate, specifically. otherwise thread could go off in all random tangents.

I was looking to explore how costs of running property is becoming less likely to be written off against income, and wondering how other owners are coping with this.
increasing and complex laws; all good, to protect good tenants from bad landlords, but sadly protects bad tenants from good landlords.
 

Lightning McQueen

Moderator
4,916 780
Not really sure how/if the new treatment of loan interest is effecting anything.

Just filled out my tax form and to be honest theres no difference whatsoever in the final tax calculation. you can test this out for yourselves by putting the whole interest in the interest costs box and let the system do the calculation, then redo the calculation putting the currently correct 75/25% interest split in to their respective boxes, result is the same. to be fair if the "25%" box is left blank then some auto calculation could be going on, but if thats the case why make us manually calculate the split.

Also new this year is a £1000 property allowance, i think this is only useful if you have low costs, as you cant use this allowance as well as offsetting other costs, thats how i read it anyway, anyone know more on this?
 

trendie

Legendary member
6,533 1,126
There's a Guardian news story of Lloyds bank offering 100% mortgages to first timers.
Correct me, but didn't doing this last time trigger a housing bubble? I seem to recall that Ireland got particularly screwed.
 

Emini-mouse

Active member
113 12
Not really sure how/if the new treatment of loan interest is effecting anything.

Just filled out my tax form and to be honest theres no difference whatsoever in the final tax calculation. you can test this out for yourselves by putting the whole interest in the interest costs box and let the system do the calculation, then redo the calculation putting the currently correct 75/25% interest split in to their respective boxes, result is the same. to be fair if the "25%" box is left blank then some auto calculation could be going on, but if thats the case why make us manually calculate the split.

Also new this year is a £1000 property allowance, i think this is only useful if you have low costs, as you cant use this allowance as well as offsetting other costs, thats how i read it anyway, anyone know more on this?
If you jointly own a rental property you can both use the £1000 property allowance. Which makes it more usefull
 
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tanokosohana

Newbie
9 0
It is better to invest in land that doesn’t have nothing built on it, than in houses or flats. Recently I found out that on the market land is appreciated on the same level with gold. However, you should be really careful in case you want to invest your money in land. The location, soil and surroundings should be taken into account. In fact, there is a lot to speak on this topic. You should better contact property management companies Naples FL and see if your ideas worth to be realized.
 
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Adoralmeena

Member
74 7
Doesn't seem worth it to me. The main disadvantages of investing in real estate:
-High entrance threshold - to buy real estate will require thousands of dollars.
-Low liquidity - selling real estate at market price usually takes several months. If it is in a not very attractive area, this procedure can stretch even for a year or more. The more expensive the property, the harder it is to sell. If the money is needed urgently, the property will have to be sold at a discount.
-Market risk - contrary to the common belief that "real estate is always growing", prices per square meter can fall rapidly.
-In addition to the price of the property itself, the rent can also fall. Therefore, from time to time the property will be standing without income. Sometimes it can last for several months. Now the real estate market is a market for tenants, and those owners who aren't ready to make concessions are losing out.
-Needed management - when you buy a property, you need to find and select tenants, solve other various issues (periodic repairs, replacement of household appliances or furniture, etc.). This will require your personal time and additional costs.
-Force Major - if there is a fire or flood. It will take a lot of money and time to restore the property and make amends. To protect yourself somehow, you have to buy insurance, which means you have to pay extra costs.
-Commissions - If you do transactions and manage your property, you will have to pay a realtor, not yourself. The broker's commissions on the stock market are tenth to hundredth percents.
 

bessiebeardsley

Newbie
8 0
I think investing in real estate it's worth the money but it requires a capital to start with. I've been in this area for the last two years, that's why I say so, but many people won't agree with me. It's worth keeping the portfolio, and I will keep it because I have a great property management software and I can manage it very easily. Yes, there are disadvantages too, but what do you recommend? Crypto? Gold? These are also good options but not as moneymaking as real estate, or at least I think so.
 
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