Buy to Let now...or wait a year??

GDB2222

shellbell63 wrote: »

I know the economics of BTL - I've done it before. And because we look in our area, I know the difference between, what is current market value & an inflated asking price. I'm not gonna pay asking price less say 25%, if asking price isn't in line with similar property prices, as that wouldn't be getting 25% off would it.
Its more a case of how far peoples crystal ball thinks we've yet to fall. If say the bottom is likely to be 25% less than current market value - then buying at this kind of discount means we won't lose any money we've put in.
If however all bets are off & it could be say 50% drop, then waiting a year is a much better option.
Just wanted to get a feel for opinions/actions of others in same market.

How about buy in a year or two and still get 25% off?

howler_2

Unless you can get 50% off the asking price I wouldnt buy

brit1234

Sounds a good idea, I would get the mortgage from Mortgage Express (part of Bradford & Bingley), they are the biggest buy to let provider. They are most likely going bust this week leading to far higher mortgage repayments on kin with Northern Rock for landlords. The more buy to let investors burnt the better for all first time buyers.

I would recomend Paragon but they are not taking on any business now before they go bust. You could try Bank of Ireland, they are looking very dodgy at the moment.

Buy to let is dying together with their funders:j

Dithering_Dad

howler wrote: »

Unless you can get 50% off the asking price I wouldnt buy

Why stop at 50%, why not 75%. In fact, hold out for 110% and then you'll have 10% to do out the place to your personal tastes!

shellbell63

Thanks all.
We are looking at BTL as pension ie someone pays the mortgage, then we get an income in retirement. So looking long term & not worried about short term gains.
Just wanted to gauge opinions - & most seem to be cautious at present, which is kinda where I was anyway. So unless a steal appears I think we'll sit tight a while longer too.
Some seem to say it doesn't matter what you buy for, if you hold it long enough & costs covered in meantime. I disagree - who wants to pay 100k for something they could have got for 70 or 50k.
Truth is though, while we're all waiting.........recovery won't come. Its when we all go out & start buying, that there may be that little light at the end of the tunnel......

shellbell63

brit1234 wrote: »

Buy to let is dying together with their funders:j

Has to be some landlords - not everyone can or wants to buy!

Dithering_Dad

shellbell63 wrote: »

Thanks all.
We are looking at BTL as pension ie someone pays the mortgage, then we get an income in retirement. So looking long term & not worried about short term gains.
Just wanted to gauge opinions - & most seem to be cautious at present, which is kinda where I was anyway. So unless a steal appears I think we'll sit tight a while longer too.
Some seem to say it doesn't matter what you buy for, if you hold it long enough & costs covered in meantime. I disagree - who wants to pay 100k for something they could have got for 70 or 50k.
Truth is though, while we're all waiting.........recovery won't come. Its when we all go out & start buying, that there may be that little light at the end of the tunnel......

If you want a pension then why not get a 'pension'? With those, the government puts in 20% or 40% for high rate tax payers and when you retire you get an income without the hassles of finding tenants, legal costs to get rid of bad tenants, void rental periods, electrical and gas checks, building insurance, building repairs and decorating, agent fees or capital gains tax when/if you come to sell.

Max_Headroom_3

Dithering_Dad wrote: »

If you want a pension then why not get a 'pension'? With those, the government puts in 20% or 40% for high rate tax payers and when you retire you get an income without the hassles of finding tenants, legal costs to get rid of bad tenants, void rental periods, electrical and gas checks, building insurance, building repairs and decorating, agent fees or capital gains tax when/if you come to sell.

Because if he gets one of those, he has to pay for it himself. The grand plan is to get someone else to pay it for him, ie a tenant covering the mortgage costs till the house is paid for, and then providing an income via rent no longer paying the mortgage.

It's the British dream, albeit four years later than everyone else.

shellbell63

Dithering_Dad wrote: »

If you want a pension then why not get a 'pension'? With those, the government puts in 20% or 40% for high rate tax payers and when you retire you get an income without the hassles of finding tenants, legal costs to get rid of bad tenants, void rental periods, electrical and gas checks, building insurance, building repairs and decorating, agent fees or capital gains tax when/if you come to sell.

Cause hubby has been badly burned with pensions & is very 'anti'. I believe theres a place for both though.
And bricks & mortar can be passed on from generation to generation.

shellbell63

Max_Headroom wrote: »

It's the British dream, albeit four years later than everyone else.

Sorry didn't understand this bit - if you mean should have been doing this years ago - we were. Just debating when to do next one.