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

Dithering_Dad

shellbell63 wrote: »

You seem to be missing my point. I'm not looking to provide for great great grandchildren....BUT you've got to admit if I get a great retirement & I still manage to pass something on, then thats a big plus - surely.
Burned by BTL? Well no - not unless I want or need to sell up. As long as property is being paid for by a tenant, costs covered etc, it isn't costing me anything. And when I retire, if house is worth a pound but someones paying £600pm to live there, I've got £600 quid in my pocket - so who cares??
The point is it'll keep on producing an income as long as I keep it.
However if I'd put money I used to buy house into a pension, that invested in stocks & shares that nosedive - then I do have a problem in retirement....

I'm assuming you put down a deposit. In my area, houses that are for sale at £140k are being rented out at £550pm.

If you put down 25% deposit, you'd have to pay £35,000. Your mortgage would be £105k. At 6% interest only, your mortgage would be £6300 per year or £525pm. This leaves a profit of £25pm or £300 per year. Though you'd have to pay for insurance, agency fees, etc. etc. so there wouldn't really be a profit.

If you took that same £35000 and put it into a bank account paying 6% interest, you'd get an investment return of £2100 per year.

So with very little risk and absolutely no hassle, you're better off putting your money in a bank account rather than a BTL.

p.s. I forgot to add that each time you get a new mortgage product you have to pay an arrangement fee and these are getting more expensive all the time.

geoffky

that old chesnut...we are providing a service!!! if you wish to provide for your pension go out and do what i have had to do and thats work bloody hard for it. i am 44 and i have retired and never need to worry about money(unless we have total meltdown) the problem is you think that buy being a landlord you provide for the renters. who i think have a better moral compass than you but if you and your ilk had not gone into btl maybe a large percentage of those people could afford to buy their own house but due to the fact that most blt lied on their mortgage applications thus enabling them to out bid the normal joe public you all caused the prices to go higher and higher in your greed...That was what really happened with blt...you stopped odinary working people having a roof over their heads due to the lying and greed of btl landlords...the last couple of years in the housing market was only being shored up by btl landlords because you had priced everyone else out of the market.
i hope you enjoy your retirement but never ever forget that you made other people pay a high price for it...

Dithering_Dad

geoffky wrote: »

i am 44 and i have retired and never need to worry about money(unless we have total meltdown)..

I've seen you mention this before geoffky, and I'd would love to know how you managed to retire at age 44 and never need to worry about money. Can you provide details on how you achieved this?

I realise that you've probably paid off your mortgage, but you must still have council tax, heating, electricity, water/sewerage, home and contents insurance, general building mantenance, holiday money, car money (insurance, maintenance, car tax), land line costs, internet, mobile phone, socialising money, etc. etc.

Without a pension & state pension combo, how on earth are you able to pay for all of this?

IveSeenTheLight

geoffky wrote: »

that old chesnut...we are providing a service!!! if you wish to provide for your pension go out and do what i have had to do and thats work bloody hard for it. i am 44 and i have retired and never need to worry about money(unless we have total meltdown) the problem is you think that buy being a landlord you provide for the renters. who i think have a better moral compass than you but if you and your ilk had not gone into btl maybe a large percentage of those people could afford to buy their own house but due to the fact that most blt lied on their mortgage applications thus enabling them to out bid the normal joe public you all caused the prices to go higher and higher in your greed...That was what really happened with blt...you stopped odinary working people having a roof over their heads due to the lying and greed of btl landlords...the last couple of years in the housing market was only being shored up by btl landlords because you had priced everyone else out of the market.
i hope you enjoy your retirement but never ever forget that you made other people pay a high price for it...

I guess that is what must have happened the last time houses peaked in 1989....... wait, there was no BTL at that time.
Affordability in Q3 1989 was very similar to the peak this time in Q3 2007

Don't confuse BTL with easy credit as the root cause of the house price speculation.

All BTL did was privatise renting where it was previously council houses for rent.

dopester

geoffky wrote: »

That was what really happened with blt...you stopped odinary working people having a roof over their heads due to the lying and greed of btl landlords...the last couple of years in the housing market was only being shored up by btl landlords because you had priced everyone else out of the market.

That and the floods of money coming in to the banking system which made it easy for anyone who wanted to borrow nearly any amount for years and years, pushing prices up and up and up.

Those days are over, and with it your stupid house price valuations will crash.

ncooper1974

geoffky wrote: »

you are a very very greedy person....

I have 3 BTLs. I dont consider myself greedy. I wont say what I think about you, and others like you, who think the whole house crises is purely to blame on the BTL Landlords.

As I'veSeenTheLight says, there wasn't any BTL (or at least very little) in the last crash. so who did you blame then?
We're just easy targets....

ncooper1974

geoffky wrote: »

that old chesnut...we are providing a service!!! if you wish to provide for your pension go out and do what i have had to do and thats work bloody hard for it. i am 44 and i have retired and never need to worry about money(unless we have total meltdown)

I do work bloody hard. I have a full time job, as well as manage my portfolio. so whats your point? you want me to work harder? how....?

I'm 32 and have worked bloody hard to get where I am today. Truth be known, I can probably retire now if I wanted to, but I dont go spurlting it out to make a point like you do.
I actually got into the BTL business so that I could one day buy my folks a house as they will never be in a position to buy/afford one themselves. Whats so wrong with that? And then I have to listen to people like to drivel on about it all like its greed?

mrstinchcombe

ncooper1974 wrote: »

I have 3 BTLs. I dont consider myself greedy.

Er... well you are!

dopester

If you are so well placed and could "retire" (at 32 years of age!) from your BTL ventures... then good luck to you.

Would retiring require living off the rents or selling up to release the capital appreciation?

I think you'll find we are now in a buyers market.

ncooper1974

mrstinchcombe wrote: »

Er... well you are!

what an informed opinion when you know absolutely nothing about me or my circumstances.

does that mean if you own 2 cars you're greedy?
or if you dont give to charity then you're tite?