3 Reasons Why Buy To Let is dead (and no longer viable)

[@Johndoe10007]

If you are off loading your good property because you think it’s dead I’m interested in buying at a value that represents a dead industry

[@geocospan]

Good one. I bet he can’t answer that,

[@paulwhalley6789]

The whole video is nonsense isn't it haha

[@paulwhalley6789]

@@BlamelessShark4 he is ignoring fundamental factors why property will always be a sound investment

[@jakubkuba6410]

it will never be dead,not for clever ones

[@paulwhalley6789]

@@BlamelessShark4 people that are willing to learn and adapt will be fine. The government is driving out the amateurs in an attempt improve standards, so the only people left investing and renting out property know what they are doing and actually care about it. I won't be listening to this tripe anyway. You can obviously do what you want.

[@john-km3dy]

What’s dead about a passive income of £250 (after tax) a month from a ‘vanilla’ BTL with house prices increasing too? 10 of those and you’ve have a passive income of £30,000 a year and house prices increasing. Not sure why it’s dead? May not be as tax friendly but guess what, you pass that cost onto the tenant through rent...

[@discomarathonlegend]

is that all thought we were all multi millionaires, greedy dishonest, thats why even the tories, hate us ....God knows what a commie government would do, sorry i mean labour. I mean they emptied all the big mansions for the poor to take over, but it never happened, called the national trust now lol

[@waseem3967]

It's only 'dead' so he can eliminate competitors.

[@saltukyasaroglu7368]

I am completely with you.. (10 of them and you have 25k income p.a. rather than 30k*)

[@john-km3dy]

@@waseem3967 No, 10 of them you have £30k per annum, 12 x £250 = £3000 x 10 properties = £30,000 😵‍💫

[@priiyoo]

@@waseem3967 lol 🤐

[@frusciantesplectrum7980]

It’s not dead... just not as tax friendly. No other thing can you own, make money renting it whilst the value goes up.... def better than the next best thing.... dividend paying stocks and shares ...

[@frusciantesplectrum7980]

@@BlamelessShark4 very true but holding buy to let should be at least a10 year investment and in the long term, houses will always rise.

[@frusciantesplectrum7980]

Nick D let’s assume house prices did indeed remain stagnant over a ten period... what would you have invest your money in ?

[@frusciantesplectrum7980]

Nick D you know that renting a house has two income streams? You are borrowing something at a lower price and re lending it back out for more...... in regards to how long you have the house..... it doesn’t actually matter as an investment as the idea is to create a portfolio and properties do indeed fluctuate. However, if you’re in for the long term then you won’t be selling and it’s not a problem. Again, it’s all very well making the statements, but where else can you put a large deposit of money and make a passive income from it? You’ve stated property and stocks are not growing well... So what would you do? Low interest bonds? The point is, it’s simply a psychological thing to be discouraged when prices drop as they will indeed fluctuate but we hold for years and even decades chipping off the mortgage

[@frusciantesplectrum7980]

Nick D in every 70k I spend on property... after tax, I’m making on average £300... after tax defections. I also put it on 35 yr mortgage and I cannot see anything that matches this... In regards to shares, We can look at house prices in and consider those attractive. I personally feel that culturally, people are less inclined to own houses and I want to utilise this. I am also only 32 and may be at a different stage of my life. I have many properties and find HMOS the most productive atm. I literally change tactics based on the environment and current situations. I want a solid cash flow right now in my life and I take advantage of the low interest rates. Yes the stringent rules have hit me hard... But my point is, just because it’s not as good as it once was, it’s certainly better than anything else. I am still making money monthly whilst I sleep. I lasso think that the government will soo acknowledge they need private landlords and ease up in the future

[@90jimmychoo]

you don't necessarily BTL for capital growth.

[@hudson7354]

HMOs are an awful investment on maintenance alone. Commercial properties are fine until your shop or office is broke and can’t pay.

[@JD-hg8xp]

Bottom line is that rents will increase. Then what? Rent controls? Take your pick guys! Great video!

[@tinaforbes1059]

Not sure if you can just put up rent , when wages ain't going up ?

[@juliaofthefamilydowner9746]

I am a landlord with 20 years experience and tenanted properties of over 10 years on my books. I charge lower than average rent because l manage the properties myself to keep the cost down. I actually want to help my tenants have a descent roof over their heads. The average person does not realise that if all the private landlords went out of business then they would be left under the mercy of corporation giants and l dont think that they will be in favour of keeping the rents low. I know the law is changing and l plan on buying more houses within a limited company, that is one way of avoiding higher tax bills.

[@ldn876]

Very true. 'Corporate giants' are doing a lot of the build to rent. Their rents are at least £300-400 more expensive than market rents.

[@ldn876]

@@BlamelessShark4 ??? Some BTR come with concierge/gym/social rooms. These facilities come at a cost. One development in Manchester rents are £1,200 for a one bed. A private landlord charges £850 for the same square foot/postcode/one bed. 50% of the development is empty and the other 50% are tenanted with non English. Yea there's everything to like.

[@lewisgreen1633]

Sir, your style resemblesTony Blair, which is off putting but cut through that and I very much enjoyed what you had to say. Great post.

[@bootangy]

lol

[@theinvestor5601]

Ranjan wants to build property, Tony Blair wants to bomb and destroy them.

[@ranjanbhattacharya-succeed7617]

This Months Baker Street Property Meet LIVE networking event. Register FREE to secure your place at www.BakerStreetPropertyMeet.com

[@r8cha]

100% agree with everything you've said. I've been a small scale residential landlord for 20 years, but feel as though I'm being continually shafted by new legislation, that offers more mandatory compliance and unnecessary over-protection for tenants. I am literally being forced out of this business now as I watch my yields drop. Of course if I'm lucky enough to make a profit on a building I get hammered for CGT as well. Time for me to sell up and get a job stacking shelves at Asda!! At least I'll be stress free

[@ranjanbhattacharya-succeed7617]

Thank you for your comments. As one door closes, other doors in property are opening wide. This is my one and only video dwelling on the past. Future videos will focus on all those open doors and opportunities in the wonderful world of property.

[@marketbeans]

With all the housing shortage councils are constantly looking for properties to lease over a longer term. I have seen agents offering guaranteed rent schemes going from strength to strength in London. For me personally it has been a stress free and steady source of income even with all new legislation coming in.

[@kathrynmerrington5001]

Hi Zahida, how long have you been doing this for? Are the properties adequately looked after, or is it too early to say how they will be returned to you at the end of the lease period? And did you find it easy to get a mortgage or was the interest rate higher given the social housing usage?

[@alisonnorcross951]

Yes I only had one flat since 1995rented out. But it is making less money then 10yrs ago due to agency fees and tenants keeping us on toes about maintenance and all the new regs. Epc gas safety check. On and on. We had one tenant that cost us a penny for 7yrs. Now it is coninsl leaks etc. Last week some one put a bit of plastic in the key hole.

[@emililiev1621]

Majority of the property offered to rent in London are just rubbish ( chicken barn turned into a room). And landlords asked for insane amount of money.

[@Johndoe10007]

I could pick holes in everything you said , permitted development differs from city to city , I’ve never seen anything other than a roof dormer or very small extension being permitted development , any change of use normally requires permission... build to rent which you encourage is exactly the same as buy to let only you have to go to the trouble of building . You say buy to let is dead and build to rent or multi use is fine, they are the same fundamental investment and would be case specific in relation to cost. Commercial property is ge era,ky in a sweeping statement suffering because of the Amazon effect ..... business success is all about demand and the incredible demand for housing in Britain is what will sustain rental residential property , the regulations will not wipe this out

[@ranjanbhattacharya-succeed7617]

Permitted development rules ARE national. They only may not apply if local authority have imposed Article 4 or if conservation area or listed building. Certainly larger schemes have been done under PD and including change of use. (We have an office to resi scheme video done under PD, which we will release shortly.) A multi-let residential building comprising say 6 units, have a lot lower running costs than 6 separate scattered rental units. To put it simply, these economies of scale make the increased costs of regulatory compliance viable.

[@christurner3857]

Ranjan Bhattacharya - Succeed In Property A lot of what you say I agree with, and I find your site very informative and comfortable viewing. However, I must take task with your statement that MUB's are lower cost / effort to maintain / run. A flat in an MUB has just the same costs of management, maintenance and service as a house, excepting a shared roof. In an MUB you have addition communal spaces to clean and maintain, corridors, staircases, lifts, paths and gardens, refuse areas, bicycle & car parking etc, and more opportunity for abuse. Also fire alarm systems to maintain and test weekly, more expensive commercial mortgages, more difficulty in disposing of an MUB than a house. More potential disputes and disturbance between neighbours, who if are your tenants, becomes your problem. Yes, the returns are better, in terms of ROI, but the effort and stresses are also higher.

[@christurner3857]

@Iggi Barratto Sorry Iggi. MUB is a multi unit building, i.e. blocks of flats, and ROI is return on investment. There's a very good book called "Building Wealth" by Russ Whitney, worth a read if you're thinking of property investment.

[@chooselife3000]

This video served as an excellent cautionary note and warning for me not to enter residential buy to let etc.

[@johnvancamper9581]

Take another look at the comments.....financial it's not much different now for us starters. If you're a decent landlord you won't have much to fear from the new regs either. John

[@jax3311]

@@johnvancamper9581 Completely agree, I think the issue is people had it so easy and things are changing. We're investing heavily in property now, money is cheap because interest is low, you can fix for long periods, rental prices are on the up, the North West is finally seeing some growth so it's a good spot to invest. I think people who are nervous about most of these changes are just used to being able to do whatever they want and making money even if they make bad decisions.

[@johnvancamper9581]

@@jax3311 Too true. There's a video going about ....landlord of 29 years blah blah blah She's a lecturer in economics and her first act in response to s24 was to tell her letting agents to look for ways to increase rents if possible as she hadn't looked at this for a while. Her next act was to look at where economies could be made in running the properties....she was happy to find quite a few places to cut the fat. I'm am amateur (also in the North West of England) and I would be very dissapointed with myself if I'd let it slide that far that I could find the slack she found to cut back. Fat cats ???? Maybe the heyday of easy to run buy to let is over. Now is the time for them to move on to their next easy investment. I'm not afraid to work for my margins. Bring it on ! Lol

[@davidinnes3762]

I would totally agree. I've been renting property for 20 years and I've gone from a 5% profit to only 1% which I can get more elsewhere with less risk. I think now that commercial BTL with Covid is also a difficult area due to the increase in working from home.

[@terrydavis6368]

Thank you very much for making these videos. best property channel I've found so far.

[@rajmalhotra420]

Hi Ranjan a great,informative and insightful video!!! There seems to be increasing legislation and the economic and political landscape is changing!!

[@ranjanbhattacharya-succeed7617]

Wow... Thanks for all your positive feedback and for all your questions on this video. (Thanks also for the negative comments from all the 'Landlord haters' too) .... Please keep all your comments coming. Once we get to 30,000 views I will put together another video addressing your comments and questions.

[@mattschamel6550]

How applicable is this information to the US? No need in subscribing if it doesn't apply to me/us/here... 😁

[@tochukwunjoku]

Please Ranjan, I need your help! Am a new sub to your channel.

[@rajmalhotra420]

Hi Ranjan, Another Insightful,informative and relevant KZbin Video on "Buy-To-Let Vanilla!" is Dead. I will be watching your other KZbin Videos!!!

[@thistimenextyear77]

Good summary - not worth taking the risks on standard BTL’s anymore

[@habibbush1391]

Great video, keep the good work up Ranjan. God bless you.

[@alecsavory9227]

BTL is not dead. Better to set up a ltd company and buy houses the houses through the company. That way you are only taxed on the profit you make. Rentals have also risen sharply the last few years so it’s a WIN WIN. WIN getting more rent and only pay tax on your profits

[@sweetvuvuzela4634]

Alec Savory major changes coming this autumn about those limited cos

[@keithvers569]

As more regulations are introduced the higher rents will rise

[@alisonnorcross951]

My parents could not make any money from rent and sold their one extra property in 1980 what comes around goes around. There was a person that gave it a bad name not sure what year Rachman

[@harishparmar614]

1 landlords out of favour Anti landlords legislation more votes around tenants 2 onslaughts of more regulations Net yields will come down 3 dreaded sec 24 , effect small invsterors Sounds like too much hassle and hard work If you get bad tenants, can make your life hard

[@swatirenapurkar1005]

i would have appreciated if you would have stick to point by given before and after picture of a certain type of property with ROI....but I think u are politician in making

[@SG-ct2tb]

I often wonder about how all these buy to let landlords are doing right now with the coronavirus quarantine and people being unable to work or pay rent.

[@vinay14ks]

Its shame I couldn't come across you channel earlier. You explain things so beautifully :) Thank you

[@hasherpeekpower94]

Great video thank you. I am currently looking to get back into buy to let. But are concerned of the huge changes in place. Your kind of right in that it is dead. But there is some hope for standards increasing for tenants. I feel, my only concern is whether i can get a tenant out of the property if they are rouge. Are there rules in place for landlords to be protected from rogue tenants too? Also, section 24 i am having difficulty understanding why people call it a tax, why is it called this? I was told to only buy multi let properties, But with regulation changes, i am reluctant to buy. I feel safer buying and building a property portfolio of single lets. What the better option? I also don't see commercial property viable,. I wont touch them with a barge pole in this economy. But would like to know more about where you see other opportunities as separate videos.

[@TBO2488]

I’ll still be investing in but to let!! I won’t be put off by any negativity,,,,

[@leroybanging2687]

So if you want to break into market. What are young motivated investors are meant to do? You’re doing it so How is it dead. It’s just not as tax friendly as it was.

[@christurner3857]

Not necessarily dead, but certainly more difficult and costly as a result of the legislation onslaughts. It all boils down to your ROI, and this is governed primarily by the loan to value of your financing / mortgage, and whether you are prepared to self manage your portfolio or pass it onto a letting agent. If you are buying developer units to rent on maximum repayment mortgage finance, you're on a hiding to nothing. If you buy property and convert it yourself, including some measure of project / construction management, and even some personal involvement in the physical work, i.e. sweat equity, you can make a decent return. Another issue is if you ever intend to own the property outright, or use the mortgage companies investment to aid your income, thereby massively increasing your ROI, as it is predominantly the mortgage companies investment and your return is on your deposit / cash injection only. Interest only mortgages are extremely effective in this scenario. Of course you may want to build capital or a legacy for your future or that of your beneficiaries, and an interest only mortgage would not then serve your purposes, but then at the same time it would greatly reduce your current income. It's a trade off, but whichever route your choose will certainly have an effect on the viability as a business and / or capital investment.

[@Pcr06]

If you have, say £150k-£250k that is not doing much in saving accoounts what else can provide a good income apart from buy to let?

[@Anil75987]

Invest in an index fund

[@anele5696]

@@Anil75987 Hi, Is it possible to explain what an Index Fund is? Never heard of it.

[@laverndayle2675]

There is a contract drawn up between the local council and the landlord. Which states to return the property in the condition it was given in. Therefore its a hands of business.

[@jpandyaraja]

i am already out of buy to let residential..It simply is not worth it anymore

[@snoopiepants6910]

Yes bring in more regulation...not enough of it. I'll keep this short, sweet and sorry but very frank. I'm a White British 50 year old male Builder building houses, extension and maintaining 1000's of rental properties both residential and University HMO for the last 25 years. My wife of 20 years is of indian origin and my stepfather from the age of 5 was black south african so those trying to wave the racist flag dont bother. From my experience of the rental property over the last 25 years i think i have a good sound foundation to say that most rogue landlords are either Indian or Muslim landlords. WHY!....I dont think its their fault, its just that the standards they expect their tenants to live in is common place from where they originate from. My wife's family go back to India several times a month and find it a nice cultural change to sit in a circle in the dirt washing rice and doing the washing up with dry sand. This is the same for bartering...when a builder gives a costed quotation for maintenance work this is what you have to pay....but Indians and muslims tend to want to offer you hundreds less once the work is complete and you have handed them the bill. This has a bad knock on effect for them because amongst us white british builders the Indians especially are getting the 'Dont do work for the Indians' reputation....this has a further bad knock on effect because the only builders they can get are the cowboys....bad workmanship that the councils wont except. And do you know what the funny thing is about this story ....My wife and all her all Indian family agree! ITS SIMPLE: Every rental property should be inspected by the council every year to gain a license in respect to the quality the Fire/Gas/Electrics/Boiler/hot and cold running water/heating/damp/Security/good internal decoration...IE:The wall paper is not sliding down the walls ect. I could expand on this further but this is the basis of it. FINAL THOUGHT My worry is that these landlords find a way to worm their way around finding a way to continue to rent out substandard homes.

[@Astrit1991]

john richardson with your experience, which area/location would you recommend to get into BTL? Thanks

[@sgs1402]

Nobody disputes that there isn't any bad landlord out there but they are certainly in minority.The problem is the councils are using this as an excuse to enrich themselves.

[@snoopiepants6910]

@@Astrit1991 buy to let is dead... Google this.

[@snoopiepants6910]

@@Astrit1991 if you are going to the West Country is good, Exeter is about one of the best. Lived there for 14 years

[@kameleonap1751]

LOL, Indians and Muslims. Apples and pears comes to mind.

[@famemobile5978]

Some great pointers here. I would love to here your views on financing property with debt

[@davidskeeterskeeter1835]

You speak the truth my friend,👏🏻👏🏻 BTL landlord for 21 years,, 148 properties all let on SHT,,no HMOs,,,,I’ve made my dough,,now I’m OUT amigo,,😀😀👍👍🇬🇧

[@jcf828]

What are you moving on to now?

[@18Ram]

@@jcf828 timeto get on the pussay wagon

[@lisaslifestyle]

Where are your properties? I'm interested in buying single lets.

[@Arsenal-81]

You lucky bastard 👍❤

[@hasherpeekpower94]

Out, what do you mean out? Our of here or deciding to get out of property investing?

[@christophersanders8221]

Legalisation will only ever get stronger in any area and if we abide by all legislation that the government provide we will succeed. The reasons why it's in place is not to crap on someone who owns a few houses, but to give more security and reinforce the importantance of doing things correctly.

[@jadejansen4290]

Property is a long term investment, phases come and go over the life of the property. What happens if the tide turns back to favoring buy to let and then those who have invested in not so favorable times would have properties purchased at lower prices?

[@tooladdict7463]

Hi Ranjan I think agency fees is a problem they can’t charge for credit checks move-in fees contract extension fees these will all be past the landlord also you cannot get your property back with two months notice without fault so you’re going to have to spend more time going through the court which is extremely expensive and you didn’t mention stamp Duty 3% on top there’s so many regulations and changes and everyone is negative for those landlords trying their best it’s sad times

[@khalidmahmood8523]

Thanks for making and sharing your work, if any your clients need any support in technology and production or manufacturing I am here to support. I used to do BTL, with same reasons I have stopped it

[@mikesharman5394]

Excellent work Ranjan. Thank you...!

[@gemmamaymiller]

So in your opinion BTL is dead, HMO doesnt work. How exactly do landlords make their money??

[@clarkewi]

Interesting analysis but I don't think renting to people will end anytime soon. It just means rents will go up and property values will rise - which is what we see.

[@BharatPatel-ud4to]

The main reason why government is anti landlord is because it’s anti bubble. These measures together with Brexit helps ensure the property bubbles in certain areas like London and others where the rises were too high post 2008 credit crunch. The main reason why property prices have gone up since 2008 bank bailouts and QE have helped banks which in turn lent more money. In my view buy to let is still ok but not great and only if you have good tenants and low mortgages (not hit by sect.24). The reason for this in my view are two 1. People who rent will still need to rent. 2. Interest rates will rise only gradually and may even come down again if the economy is hit because of Brexit or deleveraging. If your current rent yield is below 3.5% it’s perhaps best to sell and try to get 6+% in another high yield area or different type of investment. In my view it’s all about two things your leveraging level and yield level. The UK is not as cyclical as US when it comes to property there isn’t enough land and the rich are probably not going to sell. Keep an eye on housebuilder share prices for a 6-12 month advance warning on the property trend. BDEV, TW for London prices and PSN for nationwide these are good indicators of what’s to come especially May to Nov (ignore 1st quarter when the market favours them). Ask your self how would a 2% base rate affect your buy to let? It may hit that in the next few years perhaps sooner. Property prices are affected by availability of finance more than demand and supply, always try to find out how easy is it to get a mortgage too easy means a bubble is coming too hard means crash is coming. My guess is the UK government and especially BOE are looking at this far more closely than everyone so the risk of a crash or bubble is quite low.

[@johnvancamper9581]

Soild analysis and info. Thanks. I'd add that I agree it is a ploy for votes especially from young voters. If it clears out all those who over borrowed (hopefully voluntarily not by bankruptsy ) and leaves sensible and stable landlords I think that will be good for tenants and good for the economy. John

[@Clone683]

It also doesnt help you need a 20% deposit for BtL compared to just 5% for a residential mortgage so its harder to get your foot in door

[@codrutsorian4205]

It took him 2:30 min to get to the first reason.

[@davidskeeterskeeter1835]

PS just slaughtered 7 freehold houses I’ve had for 21 years,,,,I’ve 148 houses to yet :go the games over,,GET OUT,,I’ve made my millions now I’m cashing in my chips,! Well said Ranjan 👏👏👏👏

[@raymondbest4752]

Very clear and concise, well articulated - excellent!

[@nauxsi]

It's a cash buyers market going forward. - single property landlords get minimal benefits by buying through a company. The EU says you're either a resident or you're a commercial enterprise who deals with property. Hence all these regulations to align with Europe.

[@johnvancamper9581]

What about us minnows ? I own my home. I work full time PAYE I own a 2nd home with a small interest only mortgage. I presently pay 20% tax overall. Even if regulations meant I was progressively losing relief on the mortgage payments I'm making its still viable. For example ; Say that I used to pay zero tax on 1200 pa mortgage. This year I'll pay zero on 25% of that but pay 20% on the other 75% or 900 quid. So tax of 180 pa Next year I'll pay 20% tax on the full 1200 or 240 pa ....it's less profitable but not going to make my little side income worthless. Worth less.... yes but not worthless. For others mortgaged to the hilt or making a lot of money I can see the issue. It's a sliding scale. The larger operators paying 40% tax or nearly paying it, would pribably incorporate. If not they may pull out, but doesn't their shift out of buy to let open up more opportunities for us little guys ?

[@johnvancamper9581]

@rt bigman I'm with you on the pension prospects. We'll all get shafted. Gotta sort ourselves out. As for the costs v income in B2L I'd say those with 4 or more properties let are past the danger zone if they keep on top of things. Those of us with less than 4 are vulnerable to sudden income drop whether lost tenants or our own main income. Change of circumstances will screw your cash flow. And you know what they say " Low sales is a cancer in business that can kill it but poor cashflow is a fatal heart attack" Protect yourself with a decent cash buffer, stay on top of changes. Plan for everything. Then have an exit plan. Not just the ideal exit but contingency exits along the way......like those sand pit deceleration lanes next to roads on steep hills.......somewhere to ditch when the brakes fail ! Lol You have to take some risks in property just make sure they aren't silly ones. Best of luck. John

[@terrydavis6368]

I think you will be fine, its designed to wipe out landlords with a big portfolio mortgaged to the hilt.

[@johnvancamper9581]

@@terrydavis6368 thanks for your reply. I reckon I will be OK and I reckon I'll still take on more properties to rent out. I was suggesting there's still decent opportunity for new landlords. I could understand anyone who's really stretched their borrowing to grow feeling betrayed by S24 etc. I mean why would a conservative government do this to its grass roots entrepreneurs ?? Personally I think it's weak leadership and weak MPs bowing to pressure from snowflakes over poor landlords. Still, if it teaches new landlords to grow sustainably without the "house of cards" strategy maybe this will be good for them in the long run ?

[@terrydavis6368]

@@johnvancamper9581 its still deductible in a Ltd company. What you have to remember is the people making up the taxes are some of the biggest property owners in the UK, when they make up a tax to smash landlords they open a loophole so they don't have to suffer it themselves.

[@johnvancamper9581]

@@terrydavis6368 Thanks again for taking your time to reply.....I realise that and nowadays it's a lot easier to be limited as you can do it alone. I remember when you needed to rope others in to set up a limited company. I know truck drivers who are one man limited companys. They are basically agency workers with an accountant doing their reporting for a fee. They get to enjoy more of their hard earned because of less tax and more perks like their business buying them a nice vehicle . But limited isn't for everyone and it's not taken seriously enough by many who jump into it. The penalties involved can be pretty harsh. Still, whenever something changes I always look again at options like that where I've previously decided it's not for me. Eye on the ball at all times !

[@JazminesII]

Useful video Ranjan, I think you've hit the nail on the head with your top tips ;-)

[@FaizanMunawar]

Hi ranjan thanks but commercial to residential also we letting to residential tenants so how you think those tenants will be perfect ?

[@chrisj5097]

Interesting... will have to watch again but I hear what your saying. 👍

[@thecarguy10054]

So true, goverment and society have become anti landlord!

[@coolmonkey619]

Clever, tell people not to buy property so you have more to buy

[@Anil75987]

This literally makes no sense

[@baijuthomas3716]

Great video . Well layed out . Thanks .exactly my thoughts. This mkt is for all cash buyers . If I was leveraged, I'd just exit . On commercial renting, I'd still be awry, because in general commercial space is dying due migration to online business models ,there is fewer opportunities to stick in this space, perhaps look at go downs and storage spaces over office space .in general I'd only be now in real estate in the retail space again but all cash , no leverage ..

[@leonhenry4861]

it's not really dead, you just need more money to play the game, and also have to start looking further a field for better deals.

[@Famous5s]

Some really interesting work rounds. As 'reluctant landlord' through inheritance and an issue that means I have to hold on to the property for at least a couple of years, I'm looking beyond that point. While I'll avoid S24 as things stand (have an Ltd for work, and offset bits), obviously if I do leverage against the property, it will affect me. Let's hope the government change their mind! Really interesting about commercial with PD to residential though.

[@richardsaupe]

Great Information Detective Ranjan :) of Baker Street :)

[@harryrock169]

Hi Ranjit, thank you for taking your time to share this valuable video especially background info on history of rental market since Thatcher days. Very useful indeed. I am in the process of going it to my first BTL so doing all the research as possible. I’m based on West Yorkshire (although originally from London and even though I wanted to invest in London but its a nightmare to even set a foot in the Estate Agent with their policy on blind bidding offer etc, etc..etc..) so I’m looking to buy locally but contemplating...... or is there any other investment that one can do with their cash that you can suggest ?

[@KrohunGaming]

everything you have said for reasons not to get involved are reasons i would get involved. Mandatory licensing is to stop bad landlords, this is fair. council tax on individual rooms? prices go up harder to get tenants out if faults outstanding? gets rid of bad landlords again. massive squeeze? prices go up councils can fine bad landlords? good again, less competition. rent controls always mean less landlords which means prices go up

[@Loundsify]

That does seem like quite a logical way of thinking about the situation. I'm looking into doing a buy to let on my first property and buying a property with my partner.

[@ldn876]

The police have said that If you shop lift to the value of £300, they are not going to come out. Let alone arrest you. Most people are not thieves. Same principles apply to landlords. You can have all the legislation in the world makes absolutely no difference.

[@debbiewindsor6834]

Krohun Yes until the Marxist Corbyn gets voted in and caps the rents!

[@nauxsi]

​@@debbiewindsor6834 He can cap rents if he wants, but he will need to build a lot of homes to enforce it properly. Most people would happily rent from the council than the private sector. It doesn't mean the council fixes your home any quicker when things go bad. Even councils today charge market rates if your employed.

[@annrrf1464]

Well he is 100% right. The B2L market is dead in 2023

[@TravelNomics]

Great way to discourage other

[@ldn876]

Landlords are handing out eviction notices like lolly pops. Portfolios on the market left right and centre. Dire times for BTL.

[@leonhenry4861]

Only landlords that don't have much equity in their homes they rent out and probably should have never been in the business in the first place. or the ones who take it seriously it's shooting fish in a barrel

[@ldn876]

@@leonhenry4861 I disagree. There are plenty of landlords who are mortgage free or have a low LTV, that just want out. Room sizes too small for HMO, no desire to improve properties on F Epc ratings etc...

[@rikardsaje]

I agree it's getting more difficult but it's still a great investment if you get it right. I've got 4 x flats and rent them to different organisations and have no letting fees and no voids, it's very profitable. I'm a sole trader atm but may change that. I like the fact that you borrow 75% of the asset at a low interest rate and get the full capital growth and also profit from rent, during a recession house prices may drop but people need to live somewhere if they lose their home( I don't wish that on anybody). I've got a commercial property which is very profitable too but you don't get the capital growth that you get on my residential and interest rates can be higher. I'm aiming for 10 x BTL's and that should do for the rest of my life then hand them to my kids. Good luck to anyone starting out.

[@knowitall3503]

I bet the interest rates will change that - the tax system and regulations kill it. Profit seems a dirty word in the rental game.

[@davidskeeterskeeter1835]

I’m 73 I’ve decided to evict 740 people from my 155 houses, ,let the government house them😂😂, PS you have not mentioned the EIS tax opportunities I note, 👏🏻👏🏻👏🏻🇬🇧

[@ldn876]

Oh boy. With a huge portion of landlords doing this, the government is in trouble. But then most did tell them this would happen!

[@possessionfriend946]

Well said David, the Govt need to have some first hand experience of the consequences of their meddling in business. As Ranjan points out ( and every landlord believes ) the Govt are only turning on Landlords in business to win votes.

[@chooselife3000]

That backdrop really compliments (matches) your skin tone Ranjan

[@johnny-S]

As a landlord myself I can already say that the return on investment has dropped considerably, and certainly has me questioning its ongoing viability. Another interesting point I've noticed is that almost everyone I meet is a landlord in some form or another these days! Therefore I can why the councils are seeing an opportunity to make revenue. The problem is that with returns on any investment being so poor these days there is no better alternative currently.

[@eliotsagor]

True apart from the last bit. The return from US equities in 2019 was extremely high.

[@johnny-S]

@@eliotsagor Agreed - I actually got a better return from my Fund investments (both in terms of dividends and valuation rises) than I did from my property - especially when I factor in the refurbishment costs that I had to spend this year! But overall the dividends on either investments are at an all time low. In my particular area new properties are being built at a fast and high volume rate (we have had 90,000 new homes built in the area last year alone!), so the market is now very competitive and the rental rates are taking a real hit. I have friends in other parts on the UK too - where they are seeing the same thing.

[@eliotsagor]

This is an interesting question for me at the moment. My Blackrock US equities fund was up 27% over the past 12 months. A friend of mine who picks his own stocks and has bought many of my picks is up 39% for 2019, on an account that is now 1m USD. I'm torn between investing more in property or more in equities. London and the South East are dead atm but there is significant hype around the North. Savills are predicting 24% growth over the next 4 years in the North West. I have never considered dividends from stocks, only capital growth. Stocks have outperformed property recently but the returns are lumpier and more volatile. You aren't going to get margin called on property or decide to sell prematurely when the price wobbles. Property is more consistent in terms of cash flows, although like you say, some refurbishment or a boiler break down can take out a year's rent. Unsure what my allocations between property and equities should be, but I am inclined to think it should be a mix of both

[@eliotsagor]

There is even the possibility of using leverage with an equity portfolio, although I would do that very sparingly. Perhaps 20%

[@johnny-S]

@@eliotsagor My view on this is to have a mix of both property & shares, that way if one type starts to flounder, the other can prop it up. Like all of these investments it is about being in for the long term, and all markets will wobble and recover over the long term. Oddly - I recall trying to sell one of my properties about 10 years ago as I wanted to use the money in other areas, however I was unable to sell it as we were in the market crash of 2008/9. As it turned out - not selling it was a good thing, as the income it generated mad it worth holding it in the end. The scary thing is - we're back in a very similar situation again now!

[@johnb398]

One thing you mentioned about Section 24 affecting those people with less than 4 properties the most, I think this is only true if you assume everyone is higher rate tax payer. Its quite viable for a landlord in the North to own upto 4 BTL properties and not be a higher rate tax payer due to the low rental income generated. Would you agree?

[@iwantmoney6457]

Is that mean is no point to save money to have a buy to let the house for future investment?

[@andrewcarr9239]

Good video, some very insightful thinking. The typical method of buying property to rent is getting rarer; you state many of the reasons for this, chiefly being clobbered with extra stamp duty, but the fundamentals REMAIN: Undersupply of AFFORDABLE housing, to buy and rent. People need to live somewhere. Regulation always catches up with 'easy money', what you call 'vanilla' BTL. Lay down a 20% deposit and watch your rent roll in. I've seen it, every man and his dog on the BTL gravy train, deposit in hand but not a lot of brain power, no contingency for repairs, no social skills for dealing with tenants. Disappointed that a Conservative government is behind punitive charges. BUT when are councils going to start building social housing again? I don't see this coming from central government, so private landlords still have a role to play, otherwise more strain on already stretched council services. Regulation is rarely 'just right' from the outset. You have to be more creative and work harder to be successful. I firmly believe if you are a fair landlord offering fit accommodation you can be profitable. I am interested to see what the next Budget will bring. For now I will be watching and waiting. Thanks.

[@sumit147601]

Links to -'Book Now' for tickets not working... Do we have to call to book?

[@dwjudd]

I agree, the only winners are the large institutional investors

[@seemsparker1924]

Hi I really enjoying your video.i was interested in buying a property in London near Wembley area but wanted your thoughts on weather you think now is a good time to buy or would you suggest waiting for a few months.

[@Anil75987]

What did you end up doing? I’m also thinking of buying

[@lewisrestall2476]

The forth reason is I’m selling an expensive commercial course! The last crash was caused by too much debt...mmmm so what’s happened to the debt now? It’s rocketed...! We haven’t recovered either as interests rates haven’t risen. So the biggest crash in a generation is coming. Bigger than 2008. And this guy is pushing commercial 😂😂😂😂 mmmm brexit...business...

[@rhyspowell9426]

This comment aged well, looks like it's just around the corner...

[@spencerd9325]

awesome, im just gonna click my fingers and sell the 30 properties i have ;)

[@pauluk2109]

Spencer D I’ll buy one off you for corona prices?

[@Loundsify]

Hi I was wondering what my best options are. I'm small fry in this property game... I bought my first property on the help to buy scheme (cheers George!) For £110k with me putting 10% down and help to buy putting 20% down. Since that time I've paid off just over 10%. I've been told Halifax would likely let me do a buy to let and borrow more to pay off the 20% the help to buy agency owns. Now I'd only been looking at renting my current property as a long term investment probably over 25 years which currently based on my figures would cost me £400-470 a month depending on the buy to let product. I could rent the property for £550-600 judging on similar properties in my area. Do I have enough wiggle in the extra cash to pay for other fees and insurances? I then plan to buy a second home with my girlfriend of 5 years, looking at properties around 160k which would work out at 5.5k stamp duty (which I'd have to pay) Question is it worth doing all this or am I better off just selling my property and buying a property with my partner and buying more equity of the next property and getting a second home later on?

[@MrSemexter]

May I ask what part of the country you are from?

[@Loundsify]

@@MrSemexter Mansfield, Nottinghamshire.

[@lukeh7854]

I think rent will ultimately become more expensive.

[@reverendbluejeans1748]

Blood, there was a reason why in the past you needed a property to vote.

[@hudson7354]

Ltd company is not the answer. AND the loophole could be closed soon

[@hudson7354]

And forget commercial for a few years. Units are empty everywhere

[@ranjanbhattacharya-succeed7617]

Whether Ltd is the answer or not, depends a lot on the question. But for most, property investment in a limited company makes a lot of sense. Check this video where Barrister, Mark Smith explains why >> kzbin.info/www/bejne/amaqXnmqp5l4m8k

[@ranjanbhattacharya-succeed7617]

You are right in saying that buying commercial units for buy to let, is not the best idea right now. however, buying commercial units to re purpose to alternative uses, most certainly is. Checkout these>> kzbin.info/www/bejne/bp64p5J6qLaCqbs and kzbin.info/www/bejne/foebhZ1jqpmniZo

[@motlokoangwato8736]

What you say isn't applicable in South Africa.

[@leonhenry4861]

Okay well he's from the UK, so what's your point?

[@carlitoab]

A sweeping statement. Entirely depends on your tax bracket, whether you use an agency to rent out your property, how leveraged you are, if it is furnished or not, HMO etc. Too many factors so it is case by case.

[@TheOzyurek]

I personally thought this was about voting as he talked about it half of the video. I am guessing he is going in to politics and this was a way of making conservative look good in landlords eyes. So why is it a bad idea to buy to let again ?

[@BigHenFor]

There's no use feeding chickens that aren't laying anymore. The economy is shrinking, and so will your returns if you just stick to buying houses. The running costs of HMOs is going to increase because tenants are voting Labour more. There are too many unscrupulous cowboy landlords in the market, with unsafe and unsanitary properties, so that has to change, and with the decline in migration, there are less tenants willing to put up with low quality housing, and having their deposits stolen. Change is coming, and being a landlord is no longer a simple prospect.

[@hkareno]

No doubt the yield will drop. Even the yield is break even, landlord still gain a health profit. Typical buy to let is effortless. No business should be effortless, as there is no free lunch in the world. The biggest problem is landlords don't treat buy to let as a business, they simply think I got a chicken and it gives egg naturally. They don't think they are responsible to keep there customer, tenant, happy. Housing is everyone biggest cost for everyone, however no matter u are letting or buying the service you have are generally poor compare to buying other expensive or luxury stuffs. Tenants are the "Customer", they deserve customer service are almost never exist now a days! I'm now a house owner, I will never forget the experience I had as a tenant. If you do care our younger generation, please be a responsible landlord. At the end of the day landlord is talking advance from them. Why costs more to rent than a mortgage for a same property? Until the day rent is cheaper than mortgage then

[@billpalmer2381]

very good b more social housing homes not investment

[@jpgpearson]

commercial property when every is going online.....why dont you rent out whare houses start a delivery company etc storing products people want....or developing property to sell on.

[@ldn876]

Writing a business plan for this as I type!!!!!!!

[@wowwowwow185]

Just buy cheap and flip or hold prices always go up

[@_6079SMITH]

This is great Ranjan, thanks. I wonder if someone could shed some light please? We live in our flat in Edinburgh and the mortgage is fully paid off. We are planning to buy an actual house and move into it. We also would like to keep our flat but rent it out. Is this a good idea with regards to what Ranjan and a few other people saying? 😁

[@nauxsi]

Not really. At present you have 18 months to sell your home. After this you pay capital gains on it. There is a consultation about reducing this to 9 months from next April. So you will have to decide if properties are being sold within that time frame consistently otherwise your tax bill be in the 000's.

[@_6079SMITH]

@@nauxsi Thanks for that, I appreciate your advice. But could you explain again as I didn't quite understand.. Are you saying; if we keep our flat for more than 18 months and then sell we'll have to pay Capital Gains?

[@nauxsi]

@@_6079SMITH Yes. Have a read and see what applies to your situation. www.litrg.org.uk/tax-guides/other-tax-issues/capital-gains-tax/capital-gains-tax-sale-your-home

[@AceRimmer_]

@@_6079SMITH you can avoid capital gains tax if you pass it down to your children and stay alive for the next 7 years

[@johnvancamper9581]

Tax is a very personal thing....your circumstances overall dictate your options. Pay a decent tax advisor to weigh it all up. Is selling the flat now to your own Limited Company before then in order to rent it out a useful option for example ? If the sums add up I would say keep the flat and rent it out for a trial period . This gives you options as to whether moving house was better than living in the flat too. If not you could move back and either rent out the new house or sell that. You seem to have an option to own 2 properties right now that you could lose as soon as you sell the flat. Obviously you may be in a position to then buy another 2nd property ...I don't know your finances. Even if you do you'll incurr sale costs and then purchase costs on the 2nd property as well as your new home which you could avoid by simply keeping the flat. Many only see the costs involved in buying a property but to properly evaluate the numbers you need to consider the end cost to sell too. Both come out of your equity gains. In your case you may pay selling costs on the flat then purchase costs on the new buy to let and then end selling costs on the new buy to let. Those would be in addition to the purchase costs of the new house and although that's not a business purchase it's not a bad idea to at least think about what it would cost you if you came to sell it sooner than intended. It all encourages you to be conservative on your bids for new property. Hope this gives you something useful to think about. John

[@kaysi768]

section 24 doesnt effect you, if you are buying through a ltd company right

[@praveensharma4106]

Thanks for the information, I agree with you

[@jacknelson9347]

I’m getting started in property and this is not the greatest news :( there still must be opportunity as others are going mad for it especially up north. Why is there such a housing shortage especially affordable housing?

[@ranjanbhattacharya-succeed7617]

If you are getting started and plan to do it as a business, you will probably need to buy properties in a Limited Company so that S24 tax on mortgage interest payments does not affect you. Be wary and do thorough market research on an area before buying. (Videos on how to get started in today's market coming shortly..) Some areas, particularly up North, are reaching saturation point for HMOs (Houses In Multiple Occupation) ... Will be doing a video on this shortly. There is plenty of opportunity in property. You just need to look at things differently. Commercial property and mixed use offers most opportunity. (Checkout my video on buying shops: Five Golden Rules For Investing In High Street Shops kzbin.info/www/bejne/nnjPZGaCpph3rJI ). As does property development, in particular commercial to residential conversion (Check out my video: Converting Commercial Buildings To Residential Use:kzbin.info/www/bejne/bp64p5J6qLaCqbs ). If you are doing purely residential then property development and development of multi-unit freeholds will give economies of scale to make increase cost of regulatory compliance, worthwhile.

[@MM-bf1zm]

There is no shortage of property, and what's they call affordable house is not really affordable at all.

[@felenti4956]

90% of tennents will screw you i know 20 years in the game no plan b

[@johnvancamper9581]

Seriously.....if you pay income tax at 20% which you probably do if you're just getting started in Buy To Let then S24 only means that instead of having your mortgage payments taken out of your rental earnings before you are taxed ..like any business expense, that part of the rent is no longer going to be exempt from tax. So if your mortgage interest is 200 pcm or 2400 pa then you'll now pay 480 pa more tax. Hardly a deal breaker ! Like anything else just do the sums. John

[@robg4868]

@@johnvancamper9581 Yes but you should buy only 1 or 2 properties, you'll never be able to expand your portfolio and if you do that, buying a third property, and therefore becoming a higher rate tax payer, you'll pay 40% income tax on the first 2 properties, you'll always be at risk, what if you get a salary increase that will put you in higher tax rate? You should always be careful your income is not higher than £50,000 per year(and that includes the income from your first 2 properties without being able to offset your mortgage interests anymore) so it makes sense to just have peace of mind and buy with an Ltd straight away. The only issue is that you won't get anymore the instant benefits as your income will be taxed with corporation tax if you want to use it. This is the reason why Buy to let is dead..unless you want to do an investment and get the benefits when you retire, in the meantime you spend time and energy for something you'll probably benefit from in the future when you are old, and the way things are going I wouldn't be surprised at all if the government introduces section 24 for limited companies as well....

[@paulallen3839]

Interested to know if you think penalising landlords has gone too far and will result in a change in future?

[@knowitall3503]

If landlords were becoming penalised 3 years ago - now it seems they are actively hunted down. Section 24 is the killer blow.

[@checkatrail9621]

The high street is dead dude.

[@bootangy]

lol

[@als5560]

THE UK IS DEAD IN THE WATER... Maybe do buy2Let abroad....

[@andrewmillwardwatford9410]

Already doing it in the EU and then Brexit comes along.

[@terrydavis6368]

@@andrewmillwardwatford9410 are you having success with that?

[@andrewmillwardwatford9410]

@@terrydavis6368 yes very much so

[@terrydavis6368]

@@andrewmillwardwatford9410 Which country was this in? I expect you can continue without problems by doing it as an llc

[@andrewmillwardwatford9410]

@@terrydavis6368 Estonia

[@tomatobrush3283]

A lot of opportunity outside of the UK like the US. Maybe it is time to move away from the UK which is turning more and more in to a cesspit. Many people will never own a house in the UK and these changes will not help them one bit. It won't lead to house prices coming down and rents will only increase with less people doing buy to let. The government has no idea what it is doing. I am tired of the anti-capitalist negativity towards landlords in the UK. The private rental sector is a necessary industry. The social housing sector is already bankrupt and is running on bought time.

[@Loundsify]

Simon I understand what you're saying but the problem is that ordinary working people can't save enough monthly whilst renting to get on the property ladder. I got lucky with the help to buy scheme in 2013 otherwise I'd of been waiting another 6 years to have enough savings and that would of been through staying at home with my mum.

[@steriospeaker]

This has some interesting info, and thanks for making it. A few of your legal details are wrong though: Mandatory licensing is ‘5 or more’, not 4. Councils can’t make unlimited fines. The maximum is £30k (and it’s under the housing act 2004, s249a - not the Homes Act 2018)

[@ranjanbhattacharya-succeed7617]

Thanks for your comments. The wording I used is 'more than 4' for mandatory license, which is same as saying '5 or more'. They say upto £30k fine with a caveat for unlimited fines for 'extreme cases' without defining what these are!

[@steriospeaker]

Thanks for your quick reply! Your audio clearly says ‘4 or more’ for mandatory licensing (I was listening in the car so didn’t see the written bit on the screen which does correctly say ‘more than 4’). Where does it say in law or guidance that LAs can charge more than £30k I wasn’t aware of that and would really like to see where it’s come from?

[@glasto12345]

@@steriospeaker The unlimited fines is if a local authority successfully prosecute a landlord.

[@steriospeaker]

glasto12345 yep. I stand corrected. Thanks.

[@jameslansdowne7214]

Really nice to hear some alternative options at the end there, thanks Ranjan

[@coolsunday6339]

You seem to argue against yourself a little. If point one is to encourage tenants to vote conservative, surely point three will only encourage small landlords to not. Revenue for local councils using unlimited fines and council tax banding of individual rooms in HMOs will not affect the tenants proclivity to vote one way or the other. As for rent controls, they seem to work in Germany, where there are far more rented properties.

[@sirbollocks5147]

Nightmare tenants subletting and falling behind on rent is one good reason.

[@ranjanbhattacharya-succeed7617]

To be fair, thats just bad luck. We threw out a tenant last year. His references were perfect, paid up each month but was sub-letting through airbnb. There wasn't any way to tell he was going to do that. So some things are down to bad luck. Other risks are foreseeable

[@GokuBlack-sn5dr]

@@ranjanbhattacharya-succeed7617 what's wrong with subletting if he still paid on time each month?