Is Property Investing Still Worth It?
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- Опубликовано: 8 сен 2024
- Over the years property investing has become harder.
The tax laws are more complicated, mortgage rates are rising and it seems like politicians have it in for landlords…
So is property investing actually still worth it in 2024?
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We’d love to hear what you think in the comments below. You might even have a topic you’d like us to cover in the future - if so, comment it below.
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I currently own 2 high end let properties. Today I wouldn’t dream or recommend anyone getting into buy to let . It’s over regulated,highly taxed and you’d be demonised by everyone. Mass homeless here we come, let the politicians who have uses us repeatedly point scoring house them.
Government, especially now Labour will further encourage people saving (see my strategy above) and will annihilate any possibilities of making profits in the housing market...
It’s good for corporate landlords. Bad for tenants, small landlords, and landlords that don’t like doing rent rises.
If landlords sell up on mass what effect do you think that would have on house prices, the rates banks offer and the ease of getting a mortgage? This model of using housing as a retirement investment for a few has helped to made the housing market totally unaffordable for most people.
@@ricardosmythe2548 It's very possible that the crash would come from "forced" investors. With Labour in power, it would not make much sense to invest in this market...
@@ricardosmythe2548 that case example has already occurred. The mom and pop landlords have sold up. There are 25% fewer properties available for rent than there were in 2019. House price have risen by 25%. And rents more than that.
I have 2 properties and have been pushed into 40% theft territory. I’m gutted because everytime the rent goes up, I’m going to earn less. If mortgages rates go up, I’ll pay more tax. If I get a pay rise at work, I lose out.
Make a contribution to your personal pension to push you back into a lower tax bracket, plus you’ll get the tax relief - obviously pension money is locked away until retirement and pay tax on it but do get a tax free lump sum
Put your entire tax bill into your pension or buy via LTD
Yeah makes sense, however my aim in these properties was to increase cash flow.
All further properties will be bought In a Ltd company.
I don’t want to sell these great investments, due to the excessive capital gains.
You'll be OK, I'm in the same boat, just needs a bit of planning.
2028 till the allowances increase.. gonna get rougher for the next few years
Not seen any property that I could buy as a buy to let that would even break even with the rent.
With Serviced Accomodation you can probably at least break even. Everything else, BTL, BRRR, etc in my opinion is not worth consdering...
In Auckland NZ i have seen houses worth or bought for 1 mill rent for like 700 a week. Just a quick math, one mill left in back would yield over 60k a year or more than 1200 a week, 500 more than what you get from rent, and thats before you pay the property manager, council rates, insurance and repair ....cause this sort of house isnt new in nz😂
Not all properties go up in value.
I sold my portfolio due to the tax changes and purchased 1 Bitcoin from the proceeds of each property. I’m now up approx 4 rent years worth of profits per flat after removing what I would have got anyway. No annoying tenants anymore or uncertain legislation. Best thing I could ever have done. Good luck out there.
I’ve also got Bitcoin and have a couple of properties. Crazy that depending on the market, I make more in one day (even hour) in Bitcoin, than in two month’s salary!
Best of all the property videos I've seen. You give a balanced view whereas others I've watched basically gives you no hope.
I got out of the landlord game last month because it was no longer profitable. I did everything I could for my tenants. Never increased the rent, helped them find a new place. The thing is, they lived like absolute animals. I couldn't believe the horrors when I was cleaning the place for selling. It doesn't matter what you do for some people. I'm so glad I'm done with all this.
What do you do now instead? What sort of investments are you into. I’ve made a considerable amount of crypto and looking to invest in a less riskier market
@@T222BTC stocks and shares ISA and a SIPP.
I crunched some numbers recently and the figures just don’t stack up. If you’re already established over many years, maybe, but for the new investors, forget it.
I am leaving the country. I get hit with the 40%, will take my skills elsewhere and enjoy lower tax on my rentals whilst still retaining my personal income allowance. Seems the only way to do it nowadays
I think the best option is to work remotely and still get your UK salary. If you contribute the max to your pension, you will pay a fraction of your taxes. But I agree, this country doesn't offer any quality of life anymore...
@@SycAamore I appreciate the advice, but honestly I am not optimistic about pensions either. I am not eligible to retire officially for at least another 34 years. The whole thought of putting all my money in to a pension does not appeal to me at all. I feel like I can double those contributions myself instead of being reliant on some scheme that may refuse to pay out how I want it to. Also, I am not going to get one of those amazing last salary pension schemes, so I am not inclined to go down that route at all.
@@deedee8740 Well you must be then 21 if you have another 34 years to retire? Good for you mate, I'm pushing my 40s and I can soon start extracting the money when I'm 55...
@@SycAamoreit’s going to 58 soon… yup, ffs.
@@James-lq1po That's fine. As long as I can extract all my pension tax free. There are several countries in Europe where you can move and do that...
Don’t agree with “value go up” it’s more like our money loose in value.
They only need to introduce rent control and that's the icing on the cake.
An impressive video. Well explained and presented.
Useful insights, thank you!
If you are a high earner making over 100K a year, this strategy below blows away all other investments, including property, leverage, etc. Every year you invest the max 60K in your pension. The ROI on this alone is an insane 40% and more! And this is even before you calculate the ROI on your stocks& shares! So we are talking about a combined yearly ROI of around 50%!
And I know that people will say that you will need to pay taxes when you decide to draw your pension. That's not necessarily the case if you decide to retire abroad. Other countries in Europe will tax your pension way lower than here, some won't even tax it at all!
You'll have all that money locked in, but knowing that you can start drawing at 55 is not a bad deal at all...
Oh Yayy I’ll have all my money when I’m either in a care home or can’t be arsed to spend it anymore because I’m too old
@@Tommy-rd4bj 55 years old in you'll be in a care home? Then you better cut down on that booze, buddy...
It’s called sarcasm.. The meaning behind is I would prefer to find ways to generate wealth while in my younger more productive years not when I’m at retirement age
@@Tommy-rd4bj It doesn't matter what's your age. You either pay into your pension or give a huge chunk of your taxable income to the taxman. Unless you're running some dodgy scheme...
your correct but you've forgotten the benefit of adding NI employer and employee to your 40% ROI.
so you are an optimist
good for you!
9:22 correction. all the increase is not for you to keep. When you get to sell, on the increase you need to pay CGT right?
Of course you won't keep the increase. And remember Labour is coming to power, and most likely they will increase CGT, rather than decrease it...
You’re really clear and you share helpful knowledge but could we please cut the music in the background.. it competes with your message
Inflation does not increase the worth of your property, it makes you poorer. If your house price doubles, it does not mean that you will be able to buy more stuff when you sell it. You will buy the same amount of stuff but for more money.
I have a brother advising me to invest in a rental property.............
I would sooner sandpaper my eyeballs than do that
What about real estate investment trusts? Please make a video about REITs
Very helpful video thanks
Absurd to invest in property in the UK when you can invest £80k p.a. in a Sip and Isa tax free with great advantages. Anything extra can go to the stock market. Why bother with tenants, licensing, letting agents, council, tax etc. a pretty stupid proposiion in 2024
What is a sip?
@@Jaaammmbbbooo Self-Invested Personal Pension. Or an ISA. Or mutual funds/ETFs etc
The government hates small landlords, their rules are totally ridiculous. I built a house in my garden and we rent the old house out, in this way I am acciddental landlord but there is absolutely ZEROI CHANCE I would invest further in property. ZERO!
Can you advise on a single source for all information that Landlords can utilise in order to meet their obligations?
Well explained thanks for this video
stick to basic cashflow rules. if it cashflows at a higher percentage than the bank or index fund on the money in it makes sense. if not dont do it.
Well done extremely helpful
Trying to sell for the reasons stated. The government and the council have taken it all. Now I have large firms trying to purchase the bungalow at 40 grand under the asking price. These firms have been given lots of money to spend purchasing up all the properties taken from the individual by the government. Bastards.
HODL Harry!!
This assumes endlessly increasing already unaffordable rents wont come with its own problems, the housing market has reached the point of absurdity.
Harry sounds like me 🙈🙈
Have you got any recommendations for accountants for buy to let tax returns?
Very good advice
Amazing value thanks eye op kner
Doubling in nominal value
Take out a loan on you mortgage. Reinvest that into retail business. Property funds others!
Can you please explain a bit further. Thanks
Sorry but I would have to add two big asterisk remarks to Harry's situation:
1) isn't an investment in real estate supposed to mean you're in it for cash flow? Which is the monthly rent charged to your tenant?
So, if you suddenly decide to sell, well sorry mate that's nothing to do with your tenant, and esp. bad conduct of his, so why should he be penalised for your change of mind? (This doesn't obviously apply to tenants in yes fault situations which are potential eviction cases)
2) isn't investment supposed to be paid in cash only?
If you need a loan, then surely you don't own it (ie it's bank's property obviously!) + I doubt anyone is borrowing loads to invest in other assets , say stocks or bonds, I mean doing that is unheard of.
So why is RE investment or rather "investment" via big loan considered differently?
I mean the big problem is the legislation makes a distinction between a good tenant (on whom s21 can be served) and a bad tenant (on whom s8 should be served).
But Why doesn't the legislation make a distinction between a good landlord and a bad, rogue landlord?
And why doesn't the law distinguish between a rightful owner landlord (one who paid in cash off his savings earnings inheritance whatever!) And a non-owning landlord , one who only has become the landlord via leveraging himself against the property?
Why would I spend 100k cash on a house when I can get a mortgage, and buy 4 houses instead? 75k interest only mortgage is £333/month. Rent is £750-800. I make more money, bank makes thier money. WIn win situation.
It's cash flow and capital increase over the years. It is a long term investment.
People don't usually take loans on the stock market since it is a higher risk investment. Houseing market has always been very predictable.
@@AllEy3s0nMe ... And all the while, 4 families are deprived of a potential place to move in because of smartasses like that.
It's clearly not sustainable as the decline in available housing stock is the biggest issue, followed by the general direction of rich getting richer, poor getting poorer.
That precisely highlights everything that's wrong with the housing market, and should be banned.👍👍
I am not buying houses and demolishing them. They will go on to the rental market, where four families can move in.
@@AllEy3s0nMe
😂😂😂😂
I bet the average family (and everyone else) would rather move in as owners mate (especially if first time buyers) than as renters where they're just gonna throw money down the drain.
You're basically nicking available and ALREADY VERY LIMITED housing stock for the sake of selfish personal gain off the people who could buy those and use it for their own occupation.
As I've said, I'm willing to accept if you're buying with cash if you're that wealthy. But buying on credit, and so restricting supply while also contributing towards the inflation house prices for the future buyers, should be criminal.
@@scienceevolves4417 I am not stopping anyone from buying the same houses I buy. I don't have any advantage over anyone else. I make my offer same as anyone else.
is commercial property a better option ?
Don't think it appreciates in value as much as a house
The mortgage itself is the payback
Brilliant, this means housing goes back to people who buy them to live in them not just for profit and letting them out to unfortunate.
It took longer than necessary
And what happens to those who can't afford or want to buy?
Dream on
Why do you think they can't afford? Because supply is deliberately kept low to increase demand and prices... and those with lots of money can buy more and extortionate the poorer..
because of inflation it goes up
i think that's what the arguement of crypto is...
Open a company.
poor hypothetical property investor
boohoo