Do you think Brexit will really hurt us?

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    Do you think Brexit will really hurt us?

    ‘Brexit’ (absolutely sick to death of that word!) is coming next year and if you are to believe the media then we’re all about to go back to living in the darks ages!

    Basically my situation is this; I have been lucky enough over the last 12-18 months to be able to purchase four houses outright - my own, my parents and two that are now in my portfolio to Let.
    I don’t have enough money to be able to purchase anymore outright, but still have enough for a decent deposit should I want to purchase anymore (which I do).
    I now only work part-time and use some of the money generated through the two Lets to support myself.

    Ideally, I want to stop having to work (for someone else) altogether and concentrate purely on being a landlord and growing my portfolio.

    Knowing I have four houses as capital, I feel I would be ok in using one of them to raise the capital needed to buy another house + the hefty deposit I have.

    The main question I ask is, is this a risk to do considering the unknown?

    Of course I understand no one in here can actually answer the question; but the question to you is if you had the funds available to purchase another property right now (on a BtL), would you? Or because of this whole Brexit thing and the uncertainty surrounding it, is it best to wait it out for another year or two? (Which I don’t really want to do, but obviously would if the risk was too big).


    #2
    I have the funds but won't be buying any more. (Overpriced property now.)

    I packed up employment at 31 for quality of life. I think there is a lot to be said for it:

    1.) You can 'work' your own hours
    2.) Less wear & tear on your body, car, family
    3.) You can concentrate on making yourself rich rather than someone else.

    My income after tax dropped by about a third, but I considered it worth doing. I recommend it.

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      #3
      Timing the market is a mug's game.
      If I were buying, I'd buy slowly over a long period of time. Pound cost averaging.


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        #4
        The short answer is "No"

        The answer to the title question that is. As for buying property - depends on price / return levels as it always did and always will...
        Unshackled by the chains of idle vanity, A modest manatee, that's me

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          #5
          JK0 - I'm only 35 myself, so one more house would afford me the luxury of stopping working for others.
          How many do you have, if you don't mind me asking?

          I don't live a lavish life at all, but I have a wife and 2 year old to support (plus another at some point). My wife only works part time too which is all we need to keep things ticking over.

          It's just whether to go for it or not. We need about 20k per year to live the life we live and currently we earn 13k on the rental income.
          That next house would top that up to around the 20k mark (not taking into account the repayments on around 60k I'd need to release/mortgage)... which puts me on the track to being able to stop completely.

          I just worry that if there's this massive crash that people are predicting, that we/I'm going to be a bit screwed!

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            #6
            At the end of the day there will always be people wanting to rent irrespective of what the economic climate is : provided the property is in good condition and in the right location I wouldnt be unduly concerned.

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              #7
              Originally posted by RedHitman View Post
              I just worry that if there's this massive crash that people are predicting, that we/I'm going to be a bit screwed!
              The same people have been saying the same thing for years. Prediction is very difficult, especially about the future.
              No doubt there will be a crash eventually, just as there will be booms but if you aren't selling in the short to medium term, what difference does it make?
              Or are you saying there will be a massive crash in rents?

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                #8
                Do ursids defecate in arboreal surroundings.

                The will of the people must be respected: More people/voters are now in favour of remaining than leaving, let's "respect the will of the people".

                However, property is a long-term game and there have always been and always will be periods when being a landlord is less than financially rewarding. Yet there is no way to predict if one's own portfolio will be a good or dab deal of whatever period you hold it: Regardless of all the snake-oil salesmen who confidently lie about "property prices always go up .."

                Best wishes to all, including those who disagree with me.
                I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                Comment


                  #9
                  Originally posted by RedHitman View Post
                  JK0 - I'm only 35 myself, so one more house would afford me the luxury of stopping working for others.
                  How many do you have, if you don't mind me asking?
                  Oh, well now I have fifteen mostly flats, due to developing and using the profits to buy more. (Any chance of you doing the same?)

                  When I retired 22 years ago though, I had two flats in a run down office building, my father's old house in Jersey, and some ground rents.

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                    #10
                    Brexit is the least of the (many) problems facing the UK. The problems will no doubt be blamed on brexit however. A convenient excuse.

                    I am downsizing my portfolio dramatically - but Brexit has nothing to do with it.

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                      #11
                      Much as I respect you Arful I can't agree with: "More people/voters are now in favour of remaining than leaving"! Depends which polls you read. I am sure the Momentum supporters' poll one returned the result you stated!

                      As for property - as a long term bet it is usually very safe. Values go up and down but noone can steal it from you and if you do not intend to sell in the short term this is not a problem. I agree with the posters who say that if it makes financial sense go for it. There may well be a price correction in the market at some point but there is so much demand for residential property a good house in a good location should cause you no problems. And Brexit has nothing to do with it whatsoever! Its not as if the EU pays Landlord Subsidy....
                      Unshackled by the chains of idle vanity, A modest manatee, that's me

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                        #12
                        Thanks IG: I was thinking of the Telegraph report last December... (and several others)...
                        http://www.telegraph.co.uk/news/2017...ce-referendum/
                        The BMG Research poll for The Independent found 51% favoured staying in the EU while 41% backed Brexit.

                        After people who said they did not know were pushed for an answer or excluded, the survey found 55.5% in favour of Remain and 44.5% backed Leave...
                        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                        Comment


                          #13
                          Saw that one Artful - the shift apparently came from people who did not vote in the actual Referendum and the poll was carried out before the PM managed to move on to phase 2 of talks. But that one did indeed show a lead for Ramain (among about 1500 people polled!)
                          Unshackled by the chains of idle vanity, A modest manatee, that's me

                          Comment


                            #14
                            Lord Ashcroft polls....

                            https://lordashcroftpolls.com/2018/0...eu-referendum/
                            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                            Comment


                              #15
                              I'm not buying anymore but Brexit holds no concerns for me. I'm not worried about property values plummeting as I have no real intention of selling, my only concern is that my government seems to want me out of business. Most of my tenants are foreign nationals who have no intention of leaving the UK post-Brexit so I can't see any major problems.

                              Comment

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