Is it worth investing in properties in the UK these days?

[shina]

Hi All,

Just wondered to myself if it's worth investing in properties in the UK these days?

Stamp duty went up, Tax on sale went up, Mortgages intrests and conditions are not so good as they used to be 2 years ago.

I would be happy to hear professionals opinion because I've visited my mortgage broker and as he told me, what you're trying to do is not gonna work these

days, it used to work few years backward but not today, today if you don't have enough money to do 300,000 and more houses you are wasting your time.

And i'm asking, is that true?

Thanks to everyone,

S

 

[diyhelp]

It depends where you are investing in the country and what type of assets. As far as prospects for the UK in the future, it is all doom and gloom at the moment but people fail to realise that Brexit does not mean no European migration just a different process.

It is also ironic that just a couple of years ago the "experts" were praising the UK for not joining the Euro while suggesting the EU was a sinking ship. How has the EU now become this beacon on the future? This major power house? I would point to Greece and other EU members putting on a brave face but suffering financially behind the scenes. Has the Italian banking crisis finished? No. Has the Italian pension issue been resolved? No.

 

[shina]

Hi diyhelp,

In what areas is it worth investing these days? I'm talking about buying property that needs doing,buy them in 20% BMV do it and sell it on. Is there any option to make nice profit? are these options still exist in the market of all the profit will be eaten by the stump duty/ Taxex/ Banks etc.

 

[Longterminvestor]

Taxes have increased but there is still potential to flip properties. There is a shortage of property in many parts of the UK so renovating a home you bought at 20% BMV which appeals to the right buyer could be very lucrative. Would you fall back on the rental market if you were unable to flip a property? You will need a back up plan.

 

[Deanb7823]

Don’t let your broker put you off that is nonsense. Property is always worth investing in the UK aslong as you do the fundamentals. It just depends what path you want to go down.

 

[Lee2006]

With an existing portfolio with no mortgage mixed commercial/residential what the pro / cons of putting them in a limited company will my borrowing power increase.

 

[Deanb7823]

It’s always pretty simple shifting these investments over to a limited company with a good accountant who knows what he’s doing but then like you said you have to weigh the pros and cons up as having 15 or more properties in a limited company you save on Sdlt but get a hit with higher taxes when removing profits from the company as an individual. I’m sure your borrowing power will increase later on as well as most investors are jumping to limited these days and lenders are following them for their business.

 

[nmb]

I always thought it was more difficult to obtain company finance unless it was secured against an asset(s) or guarateed by a third party (normally a director) in some shape or form? Then again if all of your properties are mortgage free there would not be any problem putting up one or more properties as security. The better quality the security the more favourable the terms of any finance.

 

[Deanb7823]

You might be right but it just comes down to lender at the end of the day. As you know some can be fussy, some lenders would chuck the finance at you and some will say no. There are many investors doing this through limited company’s now. If your mortgage free and have so many assets in your name your probably in the best position as you have a lot of lending power there.

 

[lookinginvest]

Just looking back at the original question, in my mind I would rather make a mistake on a relatively small property investment and learn from these mistakes, than jump in with a £300,000 plus investment. To suggest that the days of building up from relatively small renovation projects are gone just seems bizarre to me.