Buy-to-let mortgage - a requirement?

fatpig_2

What about getting a proper job instead of trying to get rich quick by speculating on property? Hadn't you heard? The BTL bandwagon derailed sometime ago. Only mugs are still trying to board it.

lynzpower

oh give it a rest fat pig.

If the figures stack up, which certainly they seem to and OP has clearly got the money to put down a sustantial deposit, then the only risks remaining are:

OP can you afford to pay the mortgage if you cannot find tenants/ they do a flit/ they dont pay?

Are you certain that there is a market for this flat? The only reason I say this is as loads of people are letting out properties they cannot sell, this is putting a downward pressure on rental incomes and voids certainly can be more likely.

i would put an dummy ad in the paper/ loot etc to advertise the flat at the rate you want to let it at. See what the demand is. If the phone rings red hot then likely there is a market, if not then you know its not the right time.

Dont bank on that capital gain for a long time mind you I do agree we will be in this sort of market for a long time. Are you certain you will not need this money for a while?

If it is "your pension" then I would ensure you have a consultation with an IFA to talk about pension investments and check that you are not putting your hard earned into an illiquid asset which will not perform as well as other assets.

clutton_2

sounds to me like OP has done a lot of research into this and has done decent financial calculations - why not give it a go

david29dpo

Ignore the penniless, bitter and jealous posts. It is still possible, just done myself.

Jonbvn

lynzpower wrote: »

i would put an dummy ad in the paper/ loot etc to advertise the flat at the rate you want to let it at. See what the demand is. If the phone rings red hot then likely there is a market, if not then you know its not the right time.

What an excellent idea!

rjgb

fatpig wrote: »

What about getting a proper job instead of trying to get rich quick by speculating on property? Hadn't you heard? The BTL bandwagon derailed sometime ago. Only mugs are still trying to board it.

Fatpig>>

We've got proper jobs, thank you very much. My beloved and I have a six figure joint income. Look to my post above:

"We're not interested in jumping on some band wagon to try to blindly take advantage of rising house prices, as used to be the trend, we're simply looking to improve the yield we would get from our cash."

A couple of percent improved yield would suffice.

If you haven't got anything to offer to the table, then please go and bother someone else. :mad:

Thank you to everyone else for your comments, though. In particular "lynzpower". :T

rjgb

david29dpo wrote: »

Ignore the penniless, bitter and jealous posts. It is still possible, just done myself.

What was the factor(s) that made you decide it was a good idea?

If you don't mind sharing the information, what sort of figures were you looking at when you decided to buy the BTL? I understand if you'd rather keep such info to yourself!

david29dpo

Its very easy to slag off others for getting off there !!!!!! and doing something. Yes you are right, i will be keeping such info to myself!

whiskywhisky

rjb - your figures seem feasible, therefore personally if I was on your shoes I would definitely go for it. Worse come scenerio is that next year the flat "maybe" worth 10% less. But I guess you are not planning on selling the property in the short term?