Buy to let or stocks & shares, WWYD?

[tricerotopsrule]

I’m weighing up the pros and cons of each option. Is buy to let a thing of the past now? There’s a flat that’s come up that looks good as an investment as my DCs could live in it while they are at uni but I’m wondering if investing the money in stocks and shares would be better and I could help them a bit from the returns from that?

What is buy to let like now?? I’ve not done it before but hear it’s more of a headache now?

Shares don’t call you at 3am to say the boiler’s broken or a drunk student has overfilled the bath and flooded the flat downstairs.

Are your kids at uni now?

Otherwise don’t. I have no idea why people think of BTL as some kind of passive income. Being a landlord is a job and a very hard one at that.

I've done both. Each horrendous in different ways. I wouldn't ever touch either with a barge pole. Wang your money in a savings account and get a guaranteed 5% return with zero stress or risk.

I’m sorry you had a bad experience investing. That doesn’t make it a bad thing to do. It works well for most people.

No way would I leave a significant amount of money in a savings account for more than a few months.

I would definitely stay away from buy to let. I’ve recently sold up and it’s a massive relief. New legislation has made things even more difficult for landlords.

I wouldn’t btl again.
it’s a complete minefield. And I ended spending a lot of money fixing the damage that was done to my property.

stocks and shares all the way.

Avoid BTLs it is absolutely horrendous and a lot of hard work

My eldest is at uni already and the others may follow and in the same area

Eldest is currently in halls

I've done both and investing in S&S is 10 x easier.

Thanks for the comments, that’s interesting to hear how much hard work it is as it still does seem like an easy ish passive income stream from the outside but actually sounds far from that!

Having said it is hard work, your kids will need somewhere to live? So why not get them on the property ladder when you can? Or do you want it as an investment for yourself. i think with both you need to look at the long term prospect. I think you can make a profit from both long term

I am all about stocks and shares. My grandfather did well with real estate, but having tenants is not a headache or a risk I want to have.

One bad tenant can turn btl into a (very expensive) living hell! The time you'll spend getting up to speed on all the regulations and tax returns makes having just one property an absolute time drain for a very modest return.

Only one would get on the property ladder though. Tax would be outrageous if I bought it myself due to the additional dwelling supplement and I don’t want to legally put it in the eldests name as then they won’t get any first time buyers perks and also the other kids may see that as really unfair IYSWIM. So it would be in my name as an investment for the future / pension income etc

Given your kids need it I would consider that to be honest. Let them be responsible for fixing things, working at things, all with the protection that its yours and they cant lose it

Have you maxed out your pension contributions already? If not, put it there first and any spare into a S&S isa. The money will be invested in stocks via the pension fund but its less risky and highy tax efficient.

BTL only makes economic sense these days if you buy via a company and usually only if you have multiple properties or are doing it for a long term capital gain.

This

How much can you put in a pension?? 😳

This!
Ive recently sold up my BTL after troublesome eviction process generated by defensive, passive aggressive tenants. Took a year to get them out before they finally did a “ moonlight flit.”

I never want to go through that again especially as the Govt are making it very challenging for landlords nowadays. Furthermore, Capital Gains tax is a killer.

Dont! Just don’t!

What are the things that the government have done that are making it harder for landlords? I keep hearing that but genuinely don’t know what they are, if anyone can point me to any reading / info that would be great

Agree about BTL's

Stock Market is very 'high' at the moment so potential gains are limited and there seems to be a real possibility of a crash.

As others have said a high interest savings account OR buy Government stock.

If you have a 'defined benefit' pension put some more money into that OR pay off some of your childrens student loans or help with living costs?

I’d stay far away from BTL, it’s more headache that it’s worth. With stocks and shares there’s no need to suddenly pay £££ for a new boiler or ££££ as the tenant has trashed the property. The new legislation has made it even harder for small landlords.

@AlastheDaffodils what would you do with a significant amount of money instead of putting it in a bank account?

Investing in stocks and shares ISAs or SIPP is easier. Either do some research or get an IFA.