??BTL Worse Investment??

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BTL Worse Investment

[00:00:00] Buy to let is actually really are going to be in big, big trouble. If you are invested in buy to let right, single family AST space, there is a big trouble coming towards you. Wait, there's a bill that's in the parliament at the moment. When it gets passed, which it already has been in Scotland a few years ago.

If it gets passed, it's already been read. It's already been through the phase one. Uh, it's on phase two now and by phase three, it will get passport. So by the look of it, it will get passed. What that means is that you will not be able to evict your tenant, even if they don't pay rent, you'll also not be able to sell your property.

You have to sell it to the tenant at a reasonable price, which in essence means five to 10 percent below market value. So you won't be able to even sell at market value, uh, your property, uh, without the permission of your tenant. And imagine if the tenants stop paying you rent, right? You still have to pay your mortgage.

Um, You're actually going to start [00:01:00] losing money, right? That's as simple as that. Uh, so the buy to let space is just really going to become horrendous, like literally a really, really bad investment. We started selling our buy to let portfolio many years ago. I've only got a couple of them. And now even those properties, eventually I'm going to, It's leading to a point where it's going to be used for short term lets, right?

Uh, so now you might ask me, it's okay because 90 percent of in property investment is in UK is still about buy to let like single property, single family in the property. Uh, AST is given, uh, you know, tenancy agreements given 90%. That's a very, very big number, right? So, What can you do right now? They are regulating the short term let's face already, but it's not fully regulated Which means that till that regulations come it could be many many years You could actually use your property for short term let make sure you get permission from your mortgage uh, uh provider Uh, don't just use it as it is because if you do that becomes illegal, [00:02:00] uh, so when you take permission from your, uh, mortgage provider, your bank, uh, you'd be able to use this as a short term holiday let that way you will not have the problem of regular tenants sitting there and not paying you when, uh, it's in and out.

People paying you on daily basis or weekly basis, uh, sort of like a rent to rent model. If you don't want to manage it yourself, you can give to a local company that might manage it for you or will manage it for you. They'll charge a percentage, but all of that, you eventually make more money as in comparison to the buy to let.

And also have enough of these issues of, you know, tenants not paying you rent and, you know, You know, having problems with electricity and gas bills and so on and so forth. So it gets paid by the management company. Uh, there are loads and loads of management companies in every local region, uh, that will take on, take on your property and give you like a rent guarantee because they know there's X amount of occupancy that they can achieve on your property.

So yeah, that is the only way. So BTL space is really, once this bill is passed, which it will, BTL space is just. Going to be ruined, right? There's [00:03:00] no way you're going to make money out of it. And even if the damage, the property, there's nothing you can do. If they're stopping your rent, there's nothing you can do.

You can't evict is just going to become a hopeless investment. So if you are in that space, come out and come out fast. So yeah, have an, like I said, I already shared with you what you can do at the back of that. There's absolutely nothing else you can do. That's the only thing you can do. You can have corporate tenants.

Uh, you can use it for rent to rent like Airbnb style. That's all you can do. Have an absolutely amazing day.