Buying a buy to let

neverdespairgirl

leeroypenmut wrote: »

Why? can you give a reason please

1. House prices are dropping like a stone;

2. Rental income is unlikely to cover all costs;

3. You don't seem to know anything about being a LL.

GDB2222

neverdespairgirl wrote: »

1. House prices are dropping like a stone;

2. Rental income is unlikely to cover all costs;

3. You don't seem to know anything about being a LL.

Never trust anyone who gives 3 reasons when only one is asked for.

fatpig_2

neverdespairgirl wrote: »

3. You don't seem to know anything about being a LL.

Never have truer words been written on this forum :rotfl:

truman_sparks

Would it be out of order to ask if its possible for people who went to bed in 2006 to have woken up today?


seems a good few keen buyers around today.

TS

gallygirl

truman_sparks wrote: »

Would it be out of order to ask if its possible for people who went to bed in 2006 to have woken up today?


seems a good few keen buyers around today.

TS

Not everyone who's considering buying has been to sleep for 2 yrs.

I sold 2 BTL's, one Nov 05 & one Feb 06 - I read the market pretty well :cool:. OK, actually, both became vacant for 1st time since let 6 & 7 years previously and I couldn't be *rsed with the hassle for small net income. I was also becoming increasingly incredulous at the amounts people were prepared to pay for albeit sound houses but in v poor area. Somehow I managed to bail out almost at the top and am v grateful, with more than a whiff of 'phew, that was close'.

However, I am starting to look on Right Move again. Prices are around 15 - 20% down (and that's asking price, not achieving) in my area.

I may start doing sums, going back to original plan when I bought 1st BTL - how much of a deposit would I need, how much if any would I need to top-up rent to pay costs, when mortgage finishes how much in total will I have contributed and will the rental income then be sufficient ROI? The latter, as before, will be based on 1 assumption - both rental income and house value will have risen in line with inflation. I will not assume capital growth over & above this. If I feel sums stack up who knows , may even take the plunge again :eek:.

However truman, there are some people on here who do seem to ahve been sleeping for past 2 years & I find it worrying they come on here without doing basic research themselves

howler_2

leeroypenmut wrote: »

Why? can you give a reason please

Have you glanced at the news recently?

Unbelievable, absolutely unbelievably.

leeroypenmut

truman_sparks wrote: »

Would it be out of order to ask if its possible for people who went to bed in 2006 to have woken up today?


seems a good few keen buyers around today.

TS

I know what you mean but this is what i think, This house is £20-30,000 cheaper than house on same terrace - I think house prices will drop more but the more they drop the more people start looking to buy, with the increased interest in the houses sellers are less likely to drop, I offered £10,000 under asking & got it for £8,000 under asking, So when the prices drop i should be ok!!! I think!!! I hope!!!!

If prices drop more then i sit tight and ride it out, I am not so worried about making money from rent just the investment for the long term future.

I probably got it all wrong?

PasturesNew

There are two rules of thumb you can choose from:

1] Monthly Rent x 100 = what the house is worth. If you're paying more than that it's overpriced.
2] Monthly Rent x 1.25 = the monthly mortgage (or more, but never less)

If [2] is true
then do it if you must
If [1] is true
then you DID get a bargain (the right price)

If [1] AND [2] are true
Then you will win, so long as you don't get a tenant from hell

leeroypenmut

PasturesNew wrote: »

There are two rules of thumb you can choose from:

1] Monthly Rent x 100 = what the house is worth. If you're paying more than that it's overpriced.
2] Monthly Rent x 1.25 = the monthly mortgage (or more, but never less)

If [2] is true
then do it if you must
If [1] is true
then you DID get a bargain (the right price)

If [1] AND [2] are true
Then you will win, so long as you don't get a tenant from hell

[1] £10,000 overpriced
[2] well within that scope £250 spare about

leeroypenmut

that can go for the other bills