Property vs stocks 🏡 📈

I think housing will be the last to go - the thing people cling to.

When it does, imo, it’s going to hades.

Its very illiquid so that forces people to hold on for longer than they might if they could have sold quickly.

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I’m selling one but given its a leasehold and I’ve just finished a 4 year battle with 2 tribunal visits its not necessarily instructive.

My main concern, which PM truss will probably override, is the EPC requirements coming downtime line.

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Definitely something that I have been closely monitoring too the EPC stuff. Pricey business!! I think I will be focusing more on saving rates…

Unless ofcourse some sort of positive u turny-ness… surely not likely ha

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The one I need to sell has original sash windows and a beautiful huge window which would look horrendous at uPVC and cannot be done without the leaseholders permission. As I mentioned above, they don’t like me much!!

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It’s very frustrating as some properties will cost a lot of money to get them to C, and some won’t ever get there with current model I suspect.

One of my properties is electric only, with fairly modern storage heaters that were installed some years back. But costly to run for the tenants, even with cheaper rate electric used for the charging. I’m hoping the price of solar panels come down so I can get them fitted to benefit the tenants.

I think renting out property is a foolish thing to do. Its nearly always based on the view that house prices dont go down. They do.
And this view “Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.”
Marshall Field.
Renting one house out is about as risky as you can get, one bad tenant and you are in real trouble.
In my opinion you should be aiming to own at least 4 properties and to be a builder so you can do your own maintenance and if you can’t do it you have friends/contacts who will do it for you.
Thats the only way i would touch property.

You’re making a lot of assumptions and opinions that aren’t backed by any facts.

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They are based on facts. It’s risk to own one property. If you have pay a mortgage and you can’t get non payer out your in trouble.
Maintenance costs are high if you have to pay someone else.
All your eggs in one basket to boot.

Depends on whose facts.

I have one property, bought as a BTL, long term tenants, fully managed by property manager so I don’t deal with emergencies/maintenance, net yield just over 7%. I’ve just fixed my BTL mortgage for 5 years at 3.84%, which seems high but I was on a variable rate before so this is low!

There was a time when this property was my biggest investment and it was very much all eggs in one basket.

But my ISAs and SIPPs combined are now more than the equity I have in the property, so perhaps it’s not a question of property or stocks but both (if you can), for diversification?

I’ve been lucky that the property has an EPC rating of C, but not so lucky as it got caught in the cladding shenanigans.

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Just to add…when I had just one property I didn’t experience any voids etc. Had contingency funds if needed, as I do for my own mortgage etc as never know what’s around the corner.
The BTL mortgage which was about £180 a month was more than covered.
Didn’t experience any non payments, but did have landlord insurance covering missed payments/court fees etc as additional safeguard.
Don’t want people to think it’s all doom and gloom, but I’m just making a personal choice based on my own financial security/stress levels.
Property has served me well, but now for me it’s not going to be my preferred option.

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Agree it’s very personal and it’s not all doom and gloom. One of my friends is about to buy her first BTL - for the right price and in the right location, it still makes financial sense. She’s done the numbers and won’t be over-leveraged with her borrowing.

Although my property has served me well, I’m toying with the idea of selling mine in the near future, although there’s every chance that if I do sell, I may end up just buying another one (for the right price, in the right location etc).

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Most of my net wealth is held within my properties. They have done nothing but increase in value. Bought and sold a few over the last few years so I’ve done quite well out them. Property is generally a good place to store wealth over the long term. Of course there’s always going those who suffer from negative equality such as those who over paid or can’t manage the mortage payment and being forced into a sale.

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I had a house that I rented. For 10 years, no problems, then I had 3 bad tenants on the bounce. One left it in a bloody mess, the next didnt

Pay rent aftrr 6 months and it took 6 months to evict him as he had the council helping him as they had no house for him to move into, then he tried to drop the 6 months council tax on me claiming he’d moved out. The last were nearly as bad. Tried 2 different letting agencies, the first were licensed crooks. In the end, I sold it, thankfully just before Covid hit, otherwise, I’m pretty sure another lack of rental income would have finished me off. My point… Property looks a good investment, but it only takes a couple of bad judgements to lose money. A bit like investing

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Pros and cons to everything!

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Would letting agents be a choice or would that be too much of a drain, and hurt cashflow too much? I.e is that cost calculated as a % of rent?

I pay 8%+vat for my letting agent on one of my properties, some are much higher. Others I self manage.

Letting agents know all the pitfalls and all the legal stuff that changes frequently. So I would use one. My personal feeling is that successive governments are trying to make it harder for private landlords to make them sell and put more property back into circulation.

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If going for a letting agent, cheapest is not always the best way to go. 8 - 11% seems about right, I’d be a little wary of anything much cheaper.

Consider agencies which are backed by ARLA (Association of Residential Lettings Agents) or Propertymark so if they don’t do what they’re supposed to be doing, there’s a governing body to hold them accountable.

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