Is it time to buy rental properties?

What pays more NET, being mortgage free or investing the cash elsewhere? Just make sure you factor in re-mortgage fees every time it’s due. Also consider if you need fast access to cash having 100% tied up in property won’t be the quickest way to access it. You might actually conclude its better to sell up and invest somewhere or something else!

I've just sold a house, and have a significant cash balance earning 5% in the bank right now. No stress!

I could easily take advantage of distressed sellers at auction, but why do I want to do that?

Many who embark on a BTL journey do not factor in the levels of stress they will face along the way, and after nearly 25 years in the PRS, I've had enough and decided I will get out.

It depends entirely on your circumstances and your personal goals. Clearing mortgages gives security, increases monthly revenue and avoids section 24 issues, but reduces your capital growth opportunities. I’m at the stage where I am content with the size of my portfolio which gives me the income I need, but your own goals are probably very different.

not worth the bother at the mo. Stamp duty cuts on their way??? RRB on route?? EPC issues stalled.
Mortgage deals all over the place...

With more than just one or two uncertainties, each being a major factor in the PRS/renting as a whole, and Labour looking to take over, until it all settles down I'm hunkering down and not doing anything.

If the RRB goes through as it stands there will be more than enough LL's looking to sell then so keep the money in the bank, make some stress free interest and go shopping next year I suggest.

Very sensible, I sold 12 properties and paid off the mortgage on the other 6 which I still have. So interest rates don't bother me any more. As the tenants leave I will sell the other 6, Having spent 25+ years in the PRS I have had enough.

Never enter prs unless you are thinking longterm and you wont go far wrong, l personally have been in prs for 24 years plus, the only thing that concerns me is the politians and their constant war on landlords for this reason l am looking at selling up.think 24 years is enough.

BTL was satisfying before the government and Local Authorities identified landlords as a cash cow to fund their muck ups.

Now I need to evict tenants evidence I get too old because the next generation (who will inherit the properties) have decided they don’t want to be landlords. All thanks to the government, the likes of Shelter (who don’t provide shelter to anyone), Generation Rent (Generation Entitled) and the like.

Reply to the comment left by Easy rider at 21/11/2023 - 15:24
Yep got it in one

There will come a time to buy rental properties again, but now is not the time. Property values will fall for another year or two and then stagnate for perhaps five years. It is towards the end of that period of stagnation that you will want to buy. Look out for repossessions.

Until then, reduce your mortgages and put any excess cash into a stocks and shares ISA. A couple can stash away up to £40,000 per year into this tax free wrapped.

I have five flats ~£1.5 million. They bring me in a useful £75,000 per year which I share with my wife.

We also have ~£800,000 (combined) in our ISAs which pay out ~£25,000 in tax free dividends. We can either withdraw this cash, reinvest it or leave it in the ISA at 3.35% PA.

I think, if the leasehold reforms go through as hoped for, we will finally see a resurgence in the value of flats, which have flatlined while freehold has surged over the years.

I know LLs on here don't like flats due to largely uncontrolled service charges and rhe ground rent scandal, but if those problems are addressed, they currently present a potentially profitable purchase. Leaseholders can't sell because buyers can't get mortgages, further reducing prices.

That said, I've still had enough of BTL.