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Why I decided to offload my buy-to-let property portfolio

Deciding to sell off a buy-to-let portfolio is not an easy decision but the combination of an increasingly punitive tax environment with the higher rate stamp duty levy and the removal of interest rate relief, together with reductions in the returns on equity, are forcing owners to take drastic decisions. Omkar Joshi, accountant and property investor, explains the rationale for his decision to bail out of property 

Like many accountants, I have a small portfolio of buy-to-let properties in and around London. I have held the properties for some time but have now decided that it is time to liquidate my holdings. 

A couple of the properties are now on the market and the plan is to find a better returning asset for the money. Let me try and explain the reasons for the decision.

Risk/reward trade-off

All accountants did investment theory while studying for professional exams so I will not repeat the boring stuff. Except to say there is one basic principle behind any investment – the higher the risk, the higher the expected return.

Until now, investing in the property market (particularly in and around London) was characteristic of high return and low risk (relatively stable house prices and interest rate regime).

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