Hi all.
I've been a landlord now for 5 years. I started off by letting my own home through an agent. The yield was very poor and the agents made life a misery. Although disheartened, I learnt a lot. After some capital appreciation, I sold it and purchased the next property, this time specifically a BTL whilst I lived in rented elsewhere.
The current and only property I own has a good yield (currently 9%), I'm now reasonably experienced in property management, I do almost all the work myself, and have a consistently good relationship with the tenants I find.
My plan is to purchase another with the capital appreciation, and by sticking to my now fairly sound formula, all should work out reasonably well.
My situation is unusual, since I actually rent a home to live in. The area that I live in has very high house prices, but very poor rental yields. The city that has the BTL has very low house prices, and very strong yields. Working on the rent or buy metric guide of 15 (house price divided by yearly rental, below 15 suggests buying, above 15 suggests renting) my BTL property is 12 and my home 23!
I'm reluctant to purchase my own dwelling as I like the flexibility, and cannot see how it would make financial sense.
My question is this; on the basis that any capital I have access to will be invested in the next property, will it ever make financial sense becoming an owner occupier again? To do this, I'd need to take capital away from the BTL business.
If I stick to my plan, I could quite realistically own of 5 profitable BTL properties within 7-10 years, and all mortgages cleared within around 30 years. Using a portion of the income, I could quite easily pay the rent on a comfortable home to reside in.
I'm very happy in my low yield city, and have absolutely no desire to live in said high yield city.
What's your opinion on all of this?
I've been a landlord now for 5 years. I started off by letting my own home through an agent. The yield was very poor and the agents made life a misery. Although disheartened, I learnt a lot. After some capital appreciation, I sold it and purchased the next property, this time specifically a BTL whilst I lived in rented elsewhere.
The current and only property I own has a good yield (currently 9%), I'm now reasonably experienced in property management, I do almost all the work myself, and have a consistently good relationship with the tenants I find.
My plan is to purchase another with the capital appreciation, and by sticking to my now fairly sound formula, all should work out reasonably well.
My situation is unusual, since I actually rent a home to live in. The area that I live in has very high house prices, but very poor rental yields. The city that has the BTL has very low house prices, and very strong yields. Working on the rent or buy metric guide of 15 (house price divided by yearly rental, below 15 suggests buying, above 15 suggests renting) my BTL property is 12 and my home 23!
I'm reluctant to purchase my own dwelling as I like the flexibility, and cannot see how it would make financial sense.
My question is this; on the basis that any capital I have access to will be invested in the next property, will it ever make financial sense becoming an owner occupier again? To do this, I'd need to take capital away from the BTL business.
If I stick to my plan, I could quite realistically own of 5 profitable BTL properties within 7-10 years, and all mortgages cleared within around 30 years. Using a portion of the income, I could quite easily pay the rent on a comfortable home to reside in.
I'm very happy in my low yield city, and have absolutely no desire to live in said high yield city.
What's your opinion on all of this?
