Should I Sell My Buy-To-Let Properties and Invest In Stocks?

[@TheHumblePenny]

What would you do if you were in David's shoes? Sell up and invest in the stock market? Or Stick with property? Comment below ⬇️ We've made this video for educational purposes only. Please always seek Financial Advice when making investing decisions. Your capital is always at risk when you invest in the stock market and the value of your investments could go down or up.

[@IJBRTI]

Hi Ken, I am 20 years old and was looking to buy a property next year and rent it to the council as he heard that would make it passive income (so i would not have to fix boilers). I currently invest 1k a month total into 3 etf stocks all of them being acc. I have grandparents which are successful in by to let property's and they have asked me if it would be better if I would put all of my money into property. Personalty I feel as though my income should come from property and stocks should be for retirement (which i plan to retire at 50). What would you recommend stocks, property or both?

[@FormerCityFinancier]

​@@IJBRTIA boiler costs around £2k and is changed roughly every 15 years. It's really not that big of a deal! If you're worried about changing a boiler being an issue. Then wait until you have a roofing issue. 😂 Property is not easy. Unless you can do it mortgage-free then I wouldn't recommend it.

[@charleedell92]

​@@IJBRTIthe experience of your grandparents in buy to let is not how things are now with tax changes etc. I have a BTL but I certainly wouldn't buy another or go on into it now as a young investor.

[@MrRoyck10]

“No boilers to change in S&P 500” Ken. The stock market is now far better than a buy to let, no upset tenant demanding rent reduction like I set the interest rate. The best option is your recommendation to sell one of the property and reinvest it in the market. I saw this coming many years ago when I did exactly that, i watched one of Ken’s videos on ETF and the rest is history. Ken, thanks as always for sharing this great piece of content.

[@TheHumblePenny]

I always appreciate your comments 👍🏾

[@Abdul_Rahman86]

My grandparents left me a small flat worth £75k. 100% equity. I rented it out and by god it was such a headache and a hassle and not as profitable as I thought. And we had challenging tenants. They were educated and had good jobs but the tenants wife moaned and complained all the time. I put that £75k into a dividend index fund over time, 20k per year and. It’s now worth £100k and I get £990 every quarter in dividends. Some I reinvest, some I spend. I would’ve had much better returns in the S&p500 but psychologically I feel better with such a lump sum like that investing into a diversified dividend paying index fund.

[@SophiaTell-HelpsAll]

From my personal perspective, the S&P 500 is a good choice for long-term growth. There’s no need for boiler changes, but when purchasing a property, try to refurbish it as thoroughly as possible to minimize potential issues. Additionally, you can take out insurance, such as HomeServe, to help cover the cost of repairs. Money should always be working for you.

[@TheHumblePenny]

Great advice 👍🏾

[@jaybee6382]

Like the new format

[@TheHumblePenny]

Thank you 👍🏾

[@declanbostock2884]

The only issue with this video is the compound calculator was not used to do a like for like comparison with capital growth of property - that would be quite interesting to see Historic stock market growth is higher but with leverage property capital growth would likely be higher (On average similarly assuming historic growth) Also properties can be purchased through a limited company to neutralise some of the tax changes. Stock market is definitely less hassle by far but property allows you to use leverage in a slightly safer way maybe My personal opinion is stock market is likely best option for low hassle capital growth long term and more tax efficient. Property with leverage might be a good option to help generate growth quicker - but is more hassle and less tax efficient (as mentioned in the vid - more of a business rather than investing) Interested to hear any other opinions 🙂

[@TheHumblePenny]

Good points well made. If only all comments were so well thought through. Your point about analysing property returns is a valid one. Given the format of this video, it's not as easy to do it all live. I'll do a more detailed video with full comparison of both using an example. However, if you're able to, read Week 9 of our book, Financial Joy, where we analyse 6 property strategies with real life examples and run all the numbers too 😀.

[@declanbostock2884]

@@TheHumblePenny just got a copy on audible so look forward to listening through 👍

[@TheHumblePenny]

@@declanbostock2884 👍🏾

[@RainJackson79]

I am trying to do both. Have 4 properties and now only looking at HMO option buying via company. Also start to buy stocks.

[@danielpinner7856]

Hi Ken, would appreciate it if you could make some more videos about your career in accounting. Would be really interested to hear more about you journey to CFO, specifically what it was like leaving public accounting and going into your first roles in industry. I know you have one video about this which is what brought me to your channel so would be great to hear more.

[@TheHumblePenny]

Great suggestion. Could you suggest 5 specific video titles you'd like to see in this area?

[@danielpinner7856]

@@TheHumblePenny Hi, sure would be interested in the following: 1) Public accounting vs Industry 2) What to expect from a first role in industry 2) How to succeed as a new qualified accountant moving to an industry role 3) Day in the life of a financial controller 4) Day in the life of a finance director 5) Your journey moving through the ranks as an accountant, including day to day responsibilities, who you reported to, and how you eventually moved into more senior management and commercial roles.

[@danielpinner7856]

would also be great to hear about the challenges of each role and an evaluation of the rewards vs stress/time commitments of each

[@kings.omoruyi]

Brillant episode. Which would you recommend Cash LISA VS S&S LISA purly for long-term retirement savings?

[@TheHumblePenny]

Thank you! Stocks and Shares LISA all day is what I would do personally.

[@ibbysworld5966]

Can have a life time isa with a normal 20k tax feee cash isa and reap the begets of both each year? X

[@colinmacdonald2871]

I agree with this but I keep coming back to diversification. If not housing or bonds it really only leaves gold?

[@TheHumblePenny]

thehumblepenny.com/income-generating-assets/ Read this. Yes to Gold, but there are other assets too.

[@njemilenantan2269]

I use that calculator that you have shown on the screen. I used it to work out whether it was better for me to get interest monthly or annually even though the annual interest rate was higher but monthly interest worked out at a higher return even though the interest rate was less.

[@videostoviews2262]

Enjoyed this, Ken. Thank you ❤

[@ndot9238]

I agree with investing in stocks and shares. I dunno about investing in S&P with the huge crash it just had. Or am i wrong and it will recover

[@TheHumblePenny]

Take a look again. Short term declines recover. The focus is on long term investing.

[@JVNResearchMachine]

Hi Ken, This is a great episode...I'm in a similar situation too albeit with on 1 buy-to-let property...

[@TheHumblePenny]

Hope this was helpful

[@JVNResearchMachine]

@@TheHumblePenny great discussion points and as a result I've just ordered your book Financial Joy😅 Can't wait to start reading it soon Looking forward to

[@shijinvs8957]

When can I learn to invest in stock market?

[@TheHumblePenny]

1) Watch our investing playlist on KZbin. 2) Go through our investing course - thehumblepenny.com/SSI 3) Read week 7 of our Sunday Times Bestseller, Financial Joy - thehumblepenny.com/FJB

[@Alendi11]

Diversification is key

[@FormerCityFinancier]

I'm 39 and own a number of buy-to-lets mortgage free. I have had incredible luck plus come from a family who made their money in property in the late 90s. I would NEVER sell my buy-to-lets. Remember, being a landlord is a business. So if there are additional costs or regs that increase risk. Who is paying for this? The tenants! Just structure your portfolio to reduce the risk of bad tenants and use a good agent with rent and legal protection. In addition, we require a guarantor on all our lets. Why? Because if you owe me, I'm coming after your parents. If they don't pay, then we'll put a charge on their house. If you're a landlord, leave kindness at the door. View it purely as a business transaction.

[@jimmy23456]

I agree , the country will always need private landlords Even renting the properties to the nhs is worth looking at

[@TheHumblePenny]

Thanks for sharing. Interesting point about requiring a guarantor. Becoming a landlord is certainly not for everyone. A lot of people over glamourise it. For the people who know what they're doing, Property (with the right strategy and downside protection) is a good in a diversified portfolio.

[@FormerCityFinancier]

@@TheHumblePenny I agree, it certainly isn't glamorous. Risk management is in my DNA. Prior to business I worked in the City for a Big 4 as an Actuary. I quit shortly after qualifying and receiving my Fellowship. Personally, I don't see real estate as an investment. It's a business. So those entering should expect work and commitment as with any business. Thanks for the great video as always!

[@KoalaB354]

I can't understand what is so great about a LISA. I know the government give you a lot for investing BUT if you don't use it for a first time property and use it for retirement instead, I could be dead by the time I can benefit from the amount the government gives me. Surely I'm best to invest now where I could withdraw if I needed to, and therefore benefit from interest now. I do have a long-term plan but I can't touch the money I invest into a LISA if I need it, whereas if I invest in and stocks and shares ISA for example, I can access it should I need to. Am I missing something!? Help me out here, Ken & Mary! p.s. love the phone-ins!

[@nellymutesi6878]

You can access Lisa at age 60. Most people now live and work past theur 60's

[@TheHumblePenny]

You're right to ask this question. LISA can't be touched for retirement till you're 60. We always prioritise stocks and shares ISA first. However, age 60 will come God willing. For us, it's only 20 years away. So we're happy to take as much of the government bonus as possible.

[@RooRichy]

​@TheHumblePenny I thought I've been silly not opening one. If you like numbers and I don't mind sharing... I've been splitting 50% into pension and 50% into s&s isa. I felt like I have been missing out by not maxing out a LISA first, then > pension & isa afterwards. (As a couple we currently invest about 12k pa). We aim for 60k income at retirement. Been investing since 2018 and pensions and ISA are at £75k combined. 36 yo and 38 yo. 4 kids under 9 yo. Total household income 60k. I'm self-employed, my wife employed. Home is worth about £240-£280k. Mortgage 120k left. No other debts. (But don't feel we really have a good strategy to save for a replacement car should one fail us, apart from scooping from the isa). Emergency fund about 13k (thats about 5 months to us at the moment). Started from -£25k in debt in 2016. And all self taught from KZbin content creators like yourself.

[@KoalaB354]

@@TheHumblePenny I don't mean to be pessimistic about reaching 60 (🤣) but I do think it's an important consideration! Essentially, for a 40 year old, it's a fixed 20-year savings account (with superb guaranteed interest, no doubt about it!)

[@wellnesswithbukola]

Hello Kenny, pls l am struggling with getting the information for what l need to buy in vanguard sipp? I have watched your other videos on the vanguard ISA and which to buy, and l have bought them... But the vanguard pension is slightly confusing because l do not know which to invest in on the vanguard pension and l can't find any videos on your page on what to invest in on the pension? Do you just put it in the vanguard cash pension account? Or just in the target retirement? Pls kindly advise me or direct me to the videos that explains what exactly you would invest on the vanguard pension. Thanks alot

[@RooRichy]

@wellnesswithbukola your asking for advise, anybody telling anyone else what to invest in can leave them liable. I hope you understand. Do your research on how to read a fund fact sheet and look up the fund names. You'll get the hang of it. Look at historic returns and costs of the fund etc. Its a decisions partly based on what you think will happen in future markets by sector and by region, your risk level etc...

[@charleedell92]

You can't put property into an ISA either, stocks and shares you can. On the other hand the stock market can go down. House prices seldom do. Alternatively have you looked into REITs? This can give you property exposure without the individual responsibility and can also be held in an ISA wrapper.

[@akosiamarillo]

You cannot invest that 100k in one go in an S&S ISA. General investment account is taxed?

[@TheHumblePenny]

Yes. Gains are taxed.

[@MichaelWilliams-lo3ix]

Thanks for this

[@TheHumblePenny]

You're welcome, Michael

[@inerit5175]

I would sell one and hold on to one!

[@TheHumblePenny]

Good suggestion

[@marcsolloway3941]

I would agree, always best to be diversified, people always need a roof over their head, also with landlords selling up, rents are always on the up (generally in line with inflation).

[@shazav9776]

I would sell one property and keep the other for long term equity growth , but l suppose property management is not for everyone.

[@TheHumblePenny]

It's good for some but not for everyone.

[@firstclassfoundation3060]

This is so good

[@TheHumblePenny]

Thank you

[@ChrisLivingInYork]

Stock market is better than property only without a mortgage. Otherwise because of leverage the returns are fair greater even with some of the added hassle. I prefer stocks as dealing with tenants is never fun

[@clarenceishmael9615]

Unfortunately HMRC are going to wsnt their chunk of his equity if he sells up. Maybe he can put some of what's left in a SIPP or Work Pension, Subject to his salery as well as ISA? A big move, especially as you say Ken there is a human cost also as you're potentially taking away someones home. 🤔 Glad I'm not in his shoes. I wish him luck! 🤞🏽

[@jimmy23456]

I don’t agree I have 4 buy to let’s making. £2200 in profit per month Even allowing for deductions for tax and maintenance I still do okay I wouldn’t sell as the rents are linked to inflation and with the amount of people coming into the country from Africa etc to legally work in the uk there will be high demand for private rental for the foreseeable Better off investing the profits from your portfolio

[@TheHumblePenny]

Good suggestion.