Where to go for Buy to Let deal?

Microstar_2

Financial_Savvy wrote: »

None taken my friend.

If you could purchas the house for £100K, £25K less than 18 months ago, and get £525 per month, would you do it? That is what i want to know.

Personally I would not.
What the house was worth 18 months ago is immaterial.
You are not actually getting £525 a month, are you? Your return is more like £50/pcm at best. Now look at what happens if you have to do a few repairs (boiler breaks down), a bit of maintenance and maybe a month or two void, LA finds some 'fees' to stitch you up with.. Then add the 'hassle factor' of being a landlord (it really isn't hassle free!). Best case you clear about £600 a year - worse case it COSTS you a few £1000's in a year. Is it worth it? Possibly yes if you think house value will rise sharply (but that is not 'yield').
More likely no, its not worth it right now. House prices are very unlikely to rise and will probably fall further over the next couple of years..
The next couple of years are likely to be financially 'difficult' for the UK, with the outlook for interests rates unknown, ditto employment etc etc. IMHO it would be insane to enter BTL right now.

Financial_Savvy

Microstar thanks.

And also the other point to take into account in my circumstances is:

1. Breaking even is not a good return on 25K.
2. I am borrowing money at 6.49%, and it seems silly to have savings tied up in a house which aren't help reduce my mortgage.

You are a credit to this forum.:beer: