The Best Advice I Can Offer New & Aspiring Landlords [Timeless]

Best Advice I Can Give New & Aspiring Landlords

It’s the start of a new year, and we’re all about to lose our freaking minds and toss our inboxes out the window as they continue to get violated by the soul-destroying ‘Top property tips for [insert current year]’ newsletters.

*Vomit*

Thank you, Derek from the Wiltshire Property Times, but fuck no, I couldn’t care less about your speculative and quirky prediction that the civil parish of Crudwell will be a rental hotspot this year.

But my Lord, as a “blogger” slash “content creator”, I certainly do want a piece of the ‘This year you can stop sucking at property by doing this’ pie! That’s easy-pickings, especially for someone that’s bone dry on ideas. So here we are. my friends.

However, let’s not limit ourselves by focusing on this year or the next, or the speculative quirky guesses – because that would be utterly useless – but rather the long game!

Take it from someone that you shouldn’t be relying on for any useful information: too many landlords screw up by short-term thinking, and hoping for the best instead of planning for the worst.

Sure, there’s an optimum middle-ground somewhere, but most of us mere mortals lop to one side. If that’s the case, I’d personally rather be overly cautious and walk into a fart-wind in a hazmat suit, rather than trying to out-run it with my knobbly old knees.

Allow me to share my thoughts on how and why to focus on the bigger picture in order to help you succeed in property… year in, year out!

If you’ve been following me around on my socials recently, you’ll have noted that I’ve been ruffling the feathers of all the landlords droning on and on and on and on about “how it’s not worth being a landlord anymore, because of all the unfair regulations.”

I don’t disagree, landlords are being crucified by an onslaught of ludicrous and unfair regulations. It’s a fucking sick joke.

However, I’ve been hearing the same old shit for years. Haven’t you? We’ve been throwing our toys out of the pram over something-or-another since the dawn of mankind; HIPs, EPCs (and the minimum rating requirement), EICRs, Selective Licensing, Right-to-rent, to name only a small handful of reasons for our soiled pants.

Yes, this might be the worst it’s ever been for us because of the accumulative effect. But I’m not sure there’s ever been a time when we haven’t been prissy little cry babies.

Really, none of this feels any different from when my sweet old senile nan insists that “back in the day” the youth was far more civilized and respectful to their elders. And it certainly won’t be any different from when I scream the same drivel at my adolescent, snot-faced grandchildren (who will only come and visit to grab fivers out of my wallet while I’m having a catnap).

Can regulations get so tight to the point that it’s objectively not worth being a landlord for the vast majority? Sure, but I don’t believe today is that day.

Based on my own flimsy and anecdotal observations, many of the landlords making the biggest hoo-ha about change and the unrecoverable consequences, are the ones with the most to lose because they tried to outsmart the market by exposing themselves to too much risk. Essentially, their demise will be due to mistakes made on the fundamental level as opposed to anything else.

I’m sincerely not trying to kick anyone in the gonads while they’re on their knees gasping for air, this is just my terribly haphazard way of highlighting a problem (which doesn’t reflect the nuances of every case), hoping that it will provide food for thought to anyone that’s willing to munch on my crumbs.

None of the following is financial or investment advice, but rather, with the benefit of hindsight, this is what I’d be yelling at my younger self in order to avoid the doom many are (or soon could be) facing in the property sector…

Prepare for the long term

I know, what a horrifyingly cliché sentiment. Shall I also advise my younger bumfuzzled reflection not to put all his eggs into one basket? Useful.

I’ll elaborate to escape from being crowned Captain Obvious 2022.

Unless you plan on flipping, don’t think in months or a handful of years, think several years ahead and longer.

The property market is like every other investment cycle, it will eventually go through the natural highs and lows. The latter can include nuked economies and, of course, unforeseen suck-fest regulations that will rip you a new one.

We will rarely see the dark clouds approaching until it’s too late, which is why I’m a massive advocate of preparing for the inevitable shit flinging off the fan. I’ve found that the best way to do that is by:

  • Slapping down lumpy deposits (30% at least, but more the better)

    *BAM* HAVE IT! JUST TAKE MY DAMN CHEESE!

    That way there’s a solid foundation filled with equity, ready and able to combat economic turbulence, particularly property crashes that lead to negative equity.

    Many landlords will put down minimal deposits and insist that any more unnecessarily reduces liquidity and impedes growth (i.e. they would rather split their deposit and buy two properties, rather than putting more equity into one property). Fuck ’em!

    The real degenerate gamblers among us got lured into property investment schemes that granted entry with little or no capital, and claim it’s easy money. Fuck ’em harder!

    These are the same landlords that hurt and whimper the most during the storm, and wonder why they’re being victimised… and then go onto selling property courses to recoup their losses. “LOL”

  • Having a contingency fund to deal with several months of rent arrears and maintenance.

    I’m amazed at how many landlords don’t do this. It’s probably the number one reason why so many landlords get liquidated when they end up with a dud tenant that refuses to pay rent for months on end (which all landlords will deal with at some point).

  • Avoid over-leveraging. If you’re straining yourself financially to buy a property and raise a contingency, then I’d recommend finding a cheaper property, or waiting until the cash reserves are in a healthier place.

    I’d also avoid being haunted by the myth of having found ‘the deal of a lifetime’, one that’s too good to pass up.

    You haven’t. And if you have, another will come along.

  • Keep debt to a minimum, and build equity. I’m a raging fan of reducing debt as quickly as possible.

    This ties into why I’ve recently been banging on about how the children’s party trick, rent-to-rent, sucks giant rhino balls. It does not work long-term in the real world because it does not build equity; it’s the literal practise of building a house of cards, which by definition, cannot tolerate any resistance (without a large cash reserve). Rent-to-rent landlords have dug their own graves.

    Play stupid games, win stupid prizes.

Preparing for the long-term will help absorb all the inevitable and smaller headaches down the road, so that’s why it’s the best overarching advice I can offer any landlord.

I could hash together the same ol’ granular tips like, “Oh, make sure you have a written tenancy agreement, dumb-arse”, and while it’s practical advice, in the grand scheme of things, the real downfall of landlords stems from the foundational level, not the surface level bum fluff.

But seriously, make sure you have a written tenancy agreement, dumb-arse.

Consider the wider economic landscape

I’ll give you an example to set the scene:

I’ve seen a massive spike in landlords threatening to “sell up” due to new regulations (specifically Section 24, a ghastly little regulation massively increasing landlord tax liability [for those in large amounts of debt]), transforming their business model into a financially unviable turd.

Some will go further and say it’s not just about the money, they’re also fatigued from being the Governments sacrificial donkey.

I hear you loud and clear.

However, I wonder, how many of these landlords have considered the current state of the economy?

  • Inflation: Governments around the world have been printing money like degenerate psychopaths during the pandemic.

    Economy printing money

    So what does that mean? In layman’s terms, fiat currency (i.e. Government issued currency, for example, the Pound Sterling and the US Dollar) is losing its value, because the circulating supply has increased.

    How do you know if your money is losing value? You’ll notice an increase in grocery and energy bills [while salaries often remain stagnant], A.k.a. the “rising cost of living”. That’s a la inflation.

    In December 2021, the reported rate of inflation was 5.4% (the highest in 30 years). In other words, life got 5.4% more expensive. It’s probably much higher, though; Governments have a tendency to underplay the situation, and they do that by using a weak-arse formula to calculate inflation, which doesn’t reflect how bad it is for every day people (I know for a fact my shopping bill has increased MUCH more than 5.4%).

    But anyways, let’s play dumb and pretend it’s 5.4% (it’s not), so that means any cash we held onto from the start of 2021 was worth 5.4% less by the end of it. Basically, that money has less buying-power (e.g. where £1 could purchase 10 used condoms last year, it can now only purchase 8).

    Many speculate it will get worse before it gets better. I believe it.

  • House prices: In 2021, the average house price in the UK increased by 10.2% according to Land Registry data.
  • Savings account: The best five-year fixed rate Savings Account on the MSE website currently offers a 2.1% return. I haven’t the foggiest who signs up for such lengthy fixed rates for such unappealing returns, but in any case, it’s still an obese donkey that isn’t outpacing inflation rates any time soon.

    Savings account

Do you see what I’m trying to say here? The Pound Sterling went down in value, while property went up significantly.

That means [the right] property is a much better store of value than cash right now, and it usually always is.

This is precisely why filthy rich people don’t hoard vast sums of fiat currency, they invest in vehicles like property and stocks to hedge against inflation. You’ve heard stories of millionaires’ snapping up properties like they’re collecting Pokemons, and blissfully leaving them vacant, right? Well now you know why they leave them vacant – even without the rental income (and the hassle of dealing with tenants) their money is working harder being locked in property compared to in a bank account, where its fate seems to be inevitable suffering.

That’s the reason why I’m putting more into property (and crypto, but I won’t get into that again!) right now despite all the gut-wrenching regulations, while others have decided to pull it out. I do wonder where all that money is going to get allocated once it’s extracted.

Yes, some of the regulations suck hard, but I’m not going to cut my nose off to spite my nozzle.

Just to reiterate, I’ve only covered a very simplistic example of how the wider economy matters.

In conclusion, I wouldn’t recommend focusing solely on monthly balance sheets when assessing the value of investing in property and determining how best your money can work for you.

Little me would still tell big me to “do one”, of course, because he thinks he’s the coolest cucumber in Cucumber town, and the impact of inflation is a tough cookie to conceptualise when you’re a gormless doofus that has absolutely no desire to understand how the economy could possibly mess with his patch.

Before jogging on, I need to toss in some caveats (so folk don’t shit the bed. Damage control!):

  • I’m not in the business of telling anyone where to shove their hard earned money. My intention is only to illustrate why and how someone’s money might work harder for them invested in property, despite growing regulations.
  • If any landlord is up to their tits in debt and/or dealing with unmanageable overheads, then all bets are off. The state of the economy and any looming regulations, whether they be fair or unfair, isn’t the issue (refer to my notes on long-term thinking).
  • If anyone simply can’t be arsed anymore with the bureaucracy of being a landlord, then that’s a completely different story. I get it.
  • If interest rates rise and the property market dips, then in the short-term tossing money into a high-yielding savings account *might* outperform investments such as property. However, in the long-term, property has always proven to be a safe bet (which again, perfectly highlights why thinking long-term is my way forward).
  • Everyone’s circumstances are different, so it’s critical to note that I’m only making broad stroke assessments to illustrate how the wider economy can (and should) impact financial decisions. But more importantly, I’m not a financial advisor, so always do your own due diligence and seek advice from a qualified professional if required.
  • I appreciate that property isn’t the only and easiest means of investing, so I’m sure a lot of landlords are pulling their money out and investing in other areas. I have no qualms with that.

    I’m a big believer in being diversified. But I still believe investing in property is the best option (all things considered) ’cause it’s safe as HOW-ZEEZ.

Adapting to market shifts

Frequently assessing the environment and making subsequent changes, even if it feels scary, is usually prudent.

For example, when Section 24 was announced, it sent panic waves across the industry; I’ve never seen so many landlords keeling over, clenching onto their chest, and signalling difficulty in breathing.

Pussies.

When I first blogged about Section 24, I did disclose that I personally wasn’t particularly worried, because I’ve been limiting my risk and thinking long-term for ages (which, as said, caters for significant turbulence). However, even so, I did use some of my savings to make lump-sum payments to reduce the debt of my higher interest rate mortgages, to better manage the impact of the new taxation rules. It wasn’t necessarily a giant leap, but it was a pivot based on an environmental shift.

The comments section [in the blog post] was encouraging, because fellow landlords had responded with how they had also been proactive in light of the encroaching disaster.

Urgh, I’m sure I’ll regret this, because the regular contributor I’m about to throw under the spotlight can be the ultimate cocky little fanny-pack. But, credit where credit due – when I asked the crowd if and how they had made any preparations, his response and actions was a prime example of how landlords can and should adapt to swings:

Deleveraging, sold some [properties] and continuing to do so, putting up rents and building up reserves. I’ve sorted some of my mortgages onto 5 year fixes and kept the lifetime BofE +2% ers. I’ve now got out of DSS.

I’ve also got reserve plans of sweating the properties more but that would mean a lot more work.

– Benji (comment #44)

Clearly bold – and I’m sure difficult – steps were made, for the greater good.

Many of us deliberate for too long, and before we know it, we’re in a sinking ship, trying to scoop out the slush with a toothpick.

The market is never going to stop changing, so we either adapt or roll over. I recommend being a mover and shaker. Alternatively, sit on Landlord/Property forums all day squealing like a pig about it.

Download my free eBook for New & First-Time Landlords

My eBook… It hasn’t won or been nominated for any reputable or even dog-shit awards. It hasn’t been recognised by a single authority figure in the industry. There’s also a high probability it’s riddled with grammatical errors (I should probably get a proof-reader to do a once-over).

Have you noticed how EVERY Property/Landlord book author claims to be an Amazon best-seller? How does that even work? Anyways, I’m not one of them.

Fortunately, I’ve always been terrible at taking hints, and I’m still under the belief that my concoction is pretty OKAYish. You can download it here.

Aspiring, new or seasoned, I hope you make the best decision for your own individual circumstances and have a prosperous journey.

Big dog out xoxo

22 Join the Conversation...

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tony edwards 19th January, 2022 @ 11:47

In the last two years I have almost monthly letters wishing to buy my HMO,6 residents. I did not previous years. I guess because some think only HMO properties are profitable enough to be worth investing in now? Then there are the letters offering to manage it for me. Not interested and will not move and pay capital gains tax the only way to avoid is to go abroad for five years?

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The Landlord Avatar
The Landlord 19th January, 2022 @ 11:52

@Tony
Sounds like the vultures are trying to capitalise on the fear of the market - they know many want to sell, so they're taking advantage.

I don't think it's necessarily exclusive to HMOs, but my guess your details are on a database somewhere.

There's a famous Warren Buffet saying, "The stock market is a device for transferring money from the impatient to the patient.", I think the same sort of thing will be happening with property right now, given the state of the economy.

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Teracy 19th January, 2022 @ 13:47

I love your emails. There is nothing quite like stripping everything back to the Raw & getting rid of all the emotion to see the actual facts in front of your face. You are quite right as Landlords we do not take stock of the market regularly enough and then change direction to remain one step ahead. You always state very sound advice! Great Work!

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GriffMG 19th January, 2022 @ 13:54

@Landlord - Great article as usual, thank you.

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Julia 19th January, 2022 @ 14:40

I like your thoughts always a different perspective. I would read them more if the bad language was reduced

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Sean 19th January, 2022 @ 15:20

@Julia, Noo, keep the bad language, it makes it fun to read :-)

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north west landlord 19th January, 2022 @ 15:43

Probably completely out of fashion but I started into the property game with enough cash to buy a 50k terrace (redundancy and years of hard work and savings) and a 50% share in one to flip with my brother.

We renovated and flipped until we could buy another renter, 7 years later we had enough owned outright to retire. ( 4 for me, my brother has 4 and a half share) No mortgages, no debt.

A property I bought 4 years ago for £73k and spent £8k renovating has brought me 24k in rent -let for 3 years - and is now valued at £140k. Show me another safe bet investment that can do that. If I need to sell up so be it, but £140k in the bank (and lets not forget I'd have to pay tax) would bring me about 1/4 of the annual rent in interest, so it's still worth the hassle IMO.

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Paul Barrett 19th January, 2022 @ 18:52

S24 completely undermined the BTL business model.

You would need a fully functional crystal ball to have bern pessimistic enough to consider S24 could ever be considered.

I don't know of anyone who ever imagined that mortgage interest wouldn't be allowed to be offset against income.

It was the foundation of BTL in 1997.

With such offset there would have been a much reduced PRS and consequently millions of homeless.

Yes potentially in 1997 there may have been lenders prepared to offer corporate mortgages.

But such mortgages like that which were cost effective were rare.

Though no doubt the lending industry would have responded with suitably affordable products to facilitate corporate rather than sole trader BTL debt.

So let us suppose that S24 was in force from 1996.

Most LL would now be corporate LL and the size of the PRS would be roughly the same as it is now.

There is simply no way that dopey Osborne would have allowed the corporate LL PRS to be the size that the equivalent sole trader PRS is.

Osborne would have introduced a tax strategy to make corporate LL unviable.

No LL could have predicted a fundamental attack on the BTL business model.

Of course the wise strategy of reduced leverage will always be bulwark of resilience against bonkers Govt tax policies and penal anti-LL regulation like eviction bans etc.

S24 has been an unjustified assault on all existing LL

NO LL would have objected to S24 had it NOT been retrospective.

Any LL with S24 introduced for any new property would have been able to take considered business decisions.

It is likely that any new BTL properties would have been purchased via corporate mechanisms.

Osborne didn't wish for LL to escape S24 type policies as he wished to put LL out of business.

S24 was and is a very effective mechanism to achieve this

But hardly fair.

S24 as presently constructed should never have been made retrospective.

Politics unfortunately intruded into the valid BTL business model.

LL were perfectly justified in their responses to the ridiculous retrospective nature of S24.

The whole leveraged BTL business model was fundamentally based on the ability to offset mortgage interest against income to hopefully produce a taxable profit.

S24 rendered profitable LL as bankrupts in many cases.

It continues to cause LL to sell off.

S24 could never have been expected.

But we are now.

So agreeing with the model of low leverage and decent rent is available model providing it it is corporate debt.

Being a leveraged sole trader LL is simply NOT viable since S24 introduction.

A LL also needs RGI on a tenant.

Without it a LL is massively exposed to rent default.

All the financial resilience may pay for one eviction but that will use up any financial resilience a LL has built up.
RGI solves this problem.

The problem is that few tenants are able to qualify for RGI.

LL therefore undertake a massive risk without RGI.

Therefore for many LL the risk just ISN'T worth it.

The completely dysfunctional repossession process in rent defaulting cases renders the BTL business model unviable.

Which is why I'm selling up.

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The Landlord Avatar
The Landlord 19th January, 2022 @ 19:21

Thanks for the comments folks, appreciate it.

@Julia
Unfortunately, most of my readers are absolute loony bins and they *only* come here for the fruity language!

Exhibit A, @Sean :)

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The Landlord Avatar
The Landlord 19th January, 2022 @ 19:23

@north west landlord

Great job.

And yup, I think it's up to every individual to decide whether it's still worth the hassle.

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The Landlord Avatar
The Landlord 19th January, 2022 @ 19:31

@Paul

Deary me, that's a rant and a half.

You're right, I don't think anyone could have anticipated S24, because it is ludicrous.

However, that's my point, no one see's these things coming, so it's best to prepare by being sensible.

But let's face facts, S24 is mostly hurting those with large amounts of debts. There's always a consequence for carrying large debt (alternatively, there can be great rewards for taking high risks).

We can argue about the fairness of S24 all day long, but it doesn't change anything.

Going back to my point, you either prepare yourself by deleveraging, or... you don't. I'd rather prepare and save myself from a lot of stress and hassle.

In any case, as I said in my previous comment, it's up to every individual to decide whether it's worth the hassle.

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Paul Barrett 19th January, 2022 @ 20:21

@landlord

Oh I entirely agree with your post.

Perhaps as LL had we been a bit more cautious then we may NOT have taken full opportunity of the mortgage interest offset capability.

In hindsight perhaps we LL should have considered that no way would Govt allow such tax offsets to occur.

BTL IS considered an investment by HMRC.

I suppose from an investment rather than business perspective that amount of TAX saved on BTL investment was massive to the point that Govt wasn't prepared to allow sole trader LL to get way with so much tax saved.

It does seem strange that such tax offset is allowed if a corporate entity.

Of course S24 was designed to catch out all those leveraged sole traders.

Govt understood that S24 would force enormous numbers of LL out of business.

Reaping massive CGT etc from 20 years of CG.

S24 was a brilliant strategy from a Govt perspective.

It is forcing hundreds of thousands of sole trader LL out of business.

I consider your wise words should be how BTL is managed.

Resilience should be given the highest priority.

Gambling on high leverage has proven to be a highly risky business model.

Your advices as to a low leveraged with sufficient contingency funds is a far wiser and pragmatic business model vetter able to deal with the slings and arrows variously flung as LL on a fairly regular basis by bonkers Govt and Council policies.

Based on your wise perspectives I believe LL should start building up resilience for when rent controls are inevitably introduced

I would conjecture that Rent Control would be based on LHA rates.

That would massively devalue property prices.

LL need to factor in such circumstances.

Overnight LL could find themselves in negative equity being required to contribute vast cash sums to reduce LTV.

Mindful of all these slings and arrows etc if I was starting out again I would absolutely follow your ever so sensible strategy.

I believe that LL can NEVER again presume it will be business as usual.

Govt doesn't like the little people being able to profit out of property.

They consider this should be the preserve of the big boys who readily contribute to Tory Party funds.

I believe your salutary warning to LL is absolutely correct.

LL in future need to have far larger deposits reducing leverage to no more than 50%.

If that means buying one property rather than two that would be the more resilient investment strategy to adopt.

Of course what your sensible strategy is up against is GREED!!!

Being boringly sensible as you suggest ISN'T very exciting.

But it is based on events over the past years the most resilient strategy out there.

I wonder how many LL will decide to become boringly resilient adopting your wise strategy.

It is NOT in the nature of most LL to be boringly resilient.

They aspire to achieve the mostest for the leastest which as you cogently point out is a very INVESTMENT strategy.

I wonder how many LL will take note of your valid siren warnings.

I have by essentially determining that I must get out of the game ASAP.

With the awful things that are to occur to the PRS selling up for many LL will be the wisest strategy to adopt.

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warren 20th January, 2022 @ 11:50

@landlord
Excellent to the point blog as always from you, fully agree with you regarding fiat currency and the quantative easing polocy most goverments have adoptopted during the scamdemic!! crypto all the way.
I know you're not here to give advice, i'm only a small time LL & back to owning 3 properties now, sold 1 in the summer, a city centre apartment i owned for 17 years, bad purchase i made a grand total of 5k on the sale took & a year to find a buyer. I would like to reinvest in another property but i can't bring myself to buy @ these prices which seem hugely inflated due again to imo the pandemic. Something inside really makes me think @ the back end of the year, especially in my region there is going to be a substansial dip in the market, so im thinking about holding on until then. Would be gerat if you could share you opinion. Thanks Warren

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The Landlord Avatar
The Landlord 20th January, 2022 @ 21:40

Hi @Warren
Thank you, appreciate it :)

I know exactly how you feel, I feel the same, to be honest.

I won't give you direct advice, but I'll tell you what I'm doing, because it might indirectly answer your question.

At the moment I'm just paying off debt with the highest interest. I'm being quite aggressive with it because I don't want too much fiat laying around (for reasons explained).

I'm not super actively looking to buy any new properties right now, I'm going to wait and see how things go. Similarly to how you feel, my gut tells me the economy is going to take a nose dive - many indicators make me feel that way. I could be wrong, of course. So right now I'm sitting tight and observing, with the intent of buying in a weaker market.

However, if an opportunity presents itself sooner, I'm going for it. One thing I've learnt is that it's impossible to time the bottom, and if you're in it for the long-term, you don't need to.

Hope that helps.

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Teracy 21st January, 2022 @ 15:56

hi,
great newsletter as always & so funny. You should be on TV. Can you please give to me some advice on bitcoin & crypto as I would like to learn but I do not know where to start. I am a complete novice.
kind regards
teracy

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Malcolm 21st January, 2022 @ 17:08

You have to treat BTL as a long term investment. I have 5 London properties which I bought in 2012-13. One of them gives me a yield of 5.6% and the other provide a yield of between 9%-10% per year. You would not get that year-on-year yield from any bank account, pension or share portfolio - and I know as my pension has never in 20 years yielded more than 4% a year.
Yes, there is lots of hassle in BTL and there is more tax to pay than 5 years ago. However, I'm paying down the debt and so the profitability increases each year.
Anyone looking for the easy gains of the 90s and noughties will be disappointed but those looking for a steady investment that 'may' also have capital appreciation into the bargain, then BTL is definitely an investment to consider.

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MikeLL 22nd January, 2022 @ 07:39

I've often thought I should remortgage, increase my leverage and buy another property because that way I'll make more cash. But I'm of a similar opinion really LL. Whilst it's not sexy, the long game and gradually paying off debt is consistent and relatively risk free and protects you from change, and change is inevitable. I am tempted by another property but s24 has taken the shine off. Thank you for the well written "fruity" posts, they always make me think and chuckle. Oh and do you know what,most of the changing legislation that have affected LL's like EPC's and minimum room sizes and electrical checks are good, they force the poorer LL's to be better. But we do seem to be a target for the politicians with S24 being one of a couple of rule changes that I struggle to forgive. Keep it up LL!

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The Landlord 22nd January, 2022 @ 10:09

@Teracy

Ha, thanks, but unfortunately, as the saying goes, I have a face for radio (or blogging, in this case)!

I'm not really the best to advise on how to invest into Crypto unfortunately (plus, I'm not a financial advisor). But what I can say is that you should realise it's a very volatile market, so you need brass balls to participate. Mentally, it's tough to deal with the swings. That said, long-term I personally believe it's going to continue outperforming every other asset class.

In fact, it's going through a huge correction right now due to economic fears (actually, stock markets around the world are currently tanking, including traditional stocks).

Anyways, I recommend watching some YouTube videos for beginner guides:

- Coin Bureau is a really good channel, and they have a guide for beginners: https://www.youtube.com/watch?v=VYWc9dFqROI

- Brian Jung also has a good guide for beginners (his channel is also good, but most of his other videos are a little more advanced) - https://www.youtube.com/watch?v=Yb6825iv0Vk

Hope that helps.

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The Landlord Avatar
The Landlord 22nd January, 2022 @ 10:17

@Malcolm,

Completely agree. I think that's the problem, too many people are looking for short-cuts.

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The Landlord Avatar
The Landlord 22nd January, 2022 @ 10:48

@MikeLL

Thanks, appreciate it :)

Yeah, I think it really depends on every individuals risk-tolerance on how they play the game. Those with a high-risk mindset seem to get excited by cheap loans and increasing debt in order to scale. That can massively pay off, no doubt, but if it does wrong... it can go REALLY wrong. I'm just not willing to take that risk (even though I'm still relatively young and have time to recover losses).

However, as I've gotten wiser, I've woken up to the fact that we're all heavily relying on many external factors that are out of our control i.e. policies set by Government and other economical factors. And right now, I just have no faith in our Government to make the right decisions (not to get political or anything).

As said in a previous comment, buying another property isn't out of the question for me, but I am going to stand on the side lines for the moment to see how it all plays out. Naturally, if I do buy, I'll put down a hefty deposit. In the mean time, I'll continue to chip away at debt.

Cheers

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Emma 27th January, 2022 @ 12:55

Great article as always. I bought my first BTL last year and your advice has been invaluable and I have lucked out with our first tenant 🤞
I hadn’t heard of rent to rent before and am not going to lose any sleep on behalf of this sector not doing well. What’s pretty clear is if you’re trying to make money out of money you haven’t got, it won’t be easy. But if you have the 💵 it still makes sense. Annual Rent income has been a solid £8k (with very minimal outlay) V c£700 interest I would have made. Plus the long term growth in the property of course. Reading some articles I get a bit freaked so thanks fo the sound , down to earth advice. And personally the more expletives the better 😄

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The Landlord 27th January, 2022 @ 22:29

@Emma

That's amazing, so glad to hear it. I love hearing stories like yours.

"What’s pretty clear is if you’re trying to make money out of money you haven’t got, it won’t be easy."

Agreed!

As they say, "money makes money"

Thanks for the kind words, it's so humbling to get feedback like that, makes it all worthwhile.

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