At the beginning of tenure as a partner in David Barry & Company Ltd I would advise clients that the purpose of the buy-to-let property/properties was to buy low, renovate and sell high. With low capital gains tax at 10% it was the right advice at the right time.
I now have a different opinion.
Currentlly, Capital gains tax is at the taxpayers' marginal rate of personal tax and property prices are falling/stagnant. Therefore, there is little or no capital gain to me made. However, there is a more important reason why I have changed my opinion and it is as follows:
The current economic/political climate is that pensions for the future retirees are falling in real terms (adjusted for inflation) and are being paid at an ever older age rate. Longterm ladies will be receiving their pensions at 66 rising to 68 equalising their retirement age with men. Contrast this with the situation where just two short years agio women retired at 60 and men at 65. For the even younger members of society those in their 30s their retirment age looms ever further in the distance and can be looking at a retirement age of 70 and even beyond this.
Therefore it is for these reasons that David Barry has changed his opinion and advises clients that buy-yo-let is a financial tool for building an income in retrement. In fact if started early, mortgages are written to 60 and rents pay all buy-to-let-expenses then it is possible at the age of 60 to own 3 or more properties unencumbered with no mortgages and so providing an income in perpetuity from age 60.