Invest in gold or invest in a buy to let property which is the best option ?

[vand]

1 minute ago, Midasfrog said:

I have a fairly good background in investing and looking after the ££££ thank you 🤣

Fabulous.. then why don't you ask better ?????s thank you

[Martlet]

1 hour ago, AuricGoldfinger said:

These couples who live in one house and then split, where do they go and live? Two seperate houses. Quite often renting. A recession can see house prices drop but the rental market increase/hold strong due to people putting off buying, splitting up, staying put etc. The property market and people who need to live in the properties will always exist. It’s either a buyer’s or seller’s market.

Economies are complex, who knew?

[Midasfrog]

2 hours ago, vand said:

Fabulous.. then why don't you ask better ?????s thank you

If you have nothing positive to say and only add negative comments please go and sit on the naughty boy step for five minutes 😂

[silenceissilver]

The only reason to buy property now is to buy one that you really want to live in - in this very particular one. The property bubble will deflate and much likely very soon so. The property prices already fell more in May than in any other month for 11years or so. At some point people will need to start paying rent again and many won't be able to. The failure rate of credits in the Euro zone is most likely around 30% at this point but because of the lockdown banks have been told they don't need to bother about their balance sheets, effectively. But this charade can't go on for a long time. Banks will accelerate loans. Governments printing money as if there was no tomorrow while the economic output is falling. Chances are governments that have no gold will restart currencies backed up by people's properties. Buying properties will be a good idea not very far in the future but right now it's one of the worst things you could do. At the same time gold will rise in the unfolding crisis. If you have 100k to spend and want rent out, the obvious thing to do is to park your money in a safe haven - gold

[Roy]

But the population is increasing rapidly.

Once people lose their homes, where will they live?

I can see deposits becoming huge...up to 12 months?

[Robb]

On 08/06/2020 at 13:41, Midasfrog said:

What is the best investment option to invest a 100K lump sum into , would it be best to invest in Gold or purchase a buy to let property ? Has the covid 19 Pandemic affected either option .

Your question cannot be answered.  Too much depends on variables that you haven't shared, making a recommendation impossible.  What is your investment goal?  How long of a term?  Do you have a savings?  Emergency fund?  Are you retired?  Soon to retire?  Medical issues?  Divorce pending? Salary?  Business owner?  

Gold isn't considered an "investment" it is more like a hedge to help preserve a portion of wealth.  If you invested $100,000 in gold in June, 2011 it would be worth $100,000 today, nine years later...not a very good investment.  With inflation you would have lost money.  Stocks are investments,  real property are investments.

Real Estate investing allows you to leverage, something that is difficult to do with Gold.   I've been investing in Real Estate since the late 1980's and have done very well.  Buy only choice property in good locations and screen potential renters.  I pull credit reports and arrest records.  Only had one issue and that was when I bought a property based solely on cash flow in an area I should never have bought.   With 100k to invest you are in a nice position to diversify a bit so think long and hard about what your goals actually are.  Good luck!

[taffybogal]

Central London is clearly seeing the impact of Airbnb-style landlords moving property into long-term lettings, as well as a desire for larger properties. 

Also another 200k have just lost their jobs in London so will move away. 

Their is too much supply and not enough demand in London, and they are still building more blocks of flats that will also be empty

[taffybogal]

Everyone is ignoring the Elephant in the room....that being that Banks and other lenders who will NOT want to lend on properties where there is no right of possession. They certainly didn't want to prior to the introduction of Assured Shorthold Tenancies, which were brought in in order to encourage investment in the domestic rental market because of a shortage of properties available to rent. Indeed, when I considered the option of offering 5 year tenancies myself, my Bank advised that it would be in breach of their covenants and that they would not alter them to accommodate such a change. As I understand things it would appear that my Bank is not unique in this regard.

[MancunianStacker]

Buy to Let purchases are still flying in the NorthWest.

£25,000 deposit (on £100k purchase)  is returning you £5,300 per annum after mortgage interest. Yes you still get taxed on the whole income but you’d still clear a £300 return each month (at 20% tax rate), if you manage it yourself.

Yes, not very liquid but no 2 bed terraced is staying on the market for longer than 2 weeks in my area at these high prices. 

[taffybogal]

1 hour ago, MancunianStacker said:

Buy to Let purchases are still flying in the NorthWest.

£25,000 deposit (on £100k purchase)  is returning you £5,300 per annum after mortgage interest. Yes you still get taxed on the whole income but you’d still clear a £300 return each month (at 20% tax rate), if you manage it yourself.

Yes, not very liquid but no 2 bed terraced is staying on the market for longer than 2 weeks in my area at these high prices. 

You talk as if it’s guaranteed income

the risks of tenants not being able to pay their rent are greater nowadays 

and it could take years to get them out

[KDave]

1 hour ago, MancunianStacker said:

Buy to Let purchases are still flying in the NorthWest.

£25,000 deposit (on £100k purchase)  is returning you £5,300 per annum after mortgage interest. Yes you still get taxed on the whole income but you’d still clear a £300 return each month (at 20% tax rate), if you manage it yourself.

Yes, not very liquid but no 2 bed terraced is staying on the market for longer than 2 weeks in my area at these high prices. 

That is a decent yield to be fair, so long as it keeps paying. Is that on a capital repayment mortgage? 

[silvernewbie]

Btl will continue to be a cash cow for the govt and with unemployment and rules making it harder to evict tenants eg during covid they had 6 month free rent! 
 

i wouldnt put it all in Gold either as you dont get any returns, id invest in funds and your own property if you currently rent. 

[MancunianStacker]

1 hour ago, KDave said:

That is a decent yield to be fair, so long as it keeps paying. Is that on a capital repayment mortgage? 

It’s interest only. I don’t know a single landlord who does capital repayment. All profits go back into the deposit for the next house they buy. Portfolio building for retirement usually. 

[MancunianStacker]

2 hours ago, taffybogal said:

You talk as if it’s guaranteed income

the risks of tenants not being able to pay their rent are greater nowadays 

and it could take years to get them out

I’m not selling houses 😉

[MancunianStacker]

I believe Silver Slacker rented out his properties and bought silver with the rental “profit” each month. He’s got one hell of a stack!! 

[taffybogal]

16 hours ago, silvernewbie said:

Btl will continue to be a cash cow for the govt and with unemployment and rules making it harder to evict tenants eg during covid they had 6 month free rent! 
 

i wouldnt put it all in Gold either as you dont get any returns, id invest in funds and your own property if you currently rent. 

Agreed

 

they now say it’s going to be min two years to evict a non paying tenant 

[taffybogal]

A lettings chief says London may never regain its appeal to the typical renter, as new data shows the capital still struggling to recover.

 

https://www.landlordtoday.co.uk/breaking-news/2020/10/london-may-never-regain-pre-covid-appeal-to-renters--rental-chief

[KDave]

16 hours ago, MancunianStacker said:

It’s interest only. I don’t know a single landlord who does capital repayment. All profits go back into the deposit for the next house they buy. Portfolio building for retirement usually. 

I know a few people who have investment property and they are all doing as you say, maxing the leverage out, the logic being the more houses you have, the less risk/likelihood your entire income will fall to zero. It works until it doesn't 

[taffybogal]

1 hour ago, KDave said:

I know a few people who have investment property and they are all doing as you say, maxing the leverage out, the logic being the more houses you have, the less risk/likelihood your entire income will fall to zero. It works until it doesn't 

It works until it doesn’t, exactly 

it’s big risk as we head into a new Great Depression 

we could be looking at a huge correction in property and mass defaults in rents

[Martlet]

1 hour ago, taffybogal said:

A lettings chief says London may never regain its appeal to the typical renter, as new data shows the capital still struggling to recover.

 

https://www.landlordtoday.co.uk/breaking-news/2020/10/london-may-never-regain-pre-covid-appeal-to-renters--rental-chief

Wow, such short time horizons, expecting a recovery from an event that is still ongoing.  Lets give it until at least next summer before we write off one of the most popular and sought after cities in the world.  If all the theatres, universities, nightlife, schools, shopping, and of course business, that people are here for have gone, then yes it probably wont recover.  

[MancunianStacker]

1 hour ago, Martlet said:

Wow, such short time horizons, expecting a recovery from an event that is still ongoing.  Lets give it until at least next summer before we write off one of the most popular and sought after cities in the world.  If all the theatres, universities, nightlife, schools, shopping, and of course business, that people are here for have gone, then yes it probably wont recover.  

This is where “they” buy up all the property cheap and yes, rent it all back out again once it’s all over.

Landlords will have over 25% equity in most of their property and will be able to wait it out.

Time will tell. 

I have Hong Kong investors waiting to buy. Some think there will be a price correction others want to get in now as it’s a long term thing, not looking to flip in a year or 3.

[AuricGoldfinger]

long term long term long term!

that is all.

[KDave]

Long term interest rates will be higher and inflation will be driving it, houses could be down 50% by 2030. Why not? A house is worth what someone else can borrow. The big question is are we at peak cheap borrow? Or has the housing market got more deflationary conditions and state intervention to look forward to? Are we at the top? Or are we just getting started. 

[coinz123]

I am yet to here of a land lord that does not seem stressed or annoyed with tenants. I'm not saying there isn't money to be made in that game. 

But given the climate of buy to let it is not what it use to be so I have herd , the government has pretty much put tax on land lords any were it can, and stripped any tax write off's were possible. 

You use to be taxed on your profits, now your taxed on your income. ( I am no tax expert ). 

I would imagine there is nothing worse than letting a property, not getting your rent and the house being trashed. 

 

100k down south probably will not get you very far these days either, so I would probably look up north a bit if I had to put 100k into property.

 

If I was given 100k I would probably put it in a fund or some sort of passive  index investment for the long term.

isa's are pretty good, there tax free up to £20k per year and you have instant access.  

I don't think the fund manager will ever ring you at 11pm to let you know the boiler has packed up either. 

 

[taffybogal]

Yes BTL is over, it’s clear to see which way the tide is flowing and everything is going against LLs

6 in 10 renters have lost income as a result of coronavirus.

Right now, 1 in 8 renters are in debt to their landlords, and millions more are worried about losing their income and jobs. 

Renters were struggling at the outset of the pandemic, and more than half have lost income. They are being forced to borrow, cut down on essentials, or get into arrears.