Is there going to be a scramble for properties????

confused31_2

Ulfar wrote: »

Being a LL is not easy money, there are intangible costs as well as the ones you have to budget for. Tenants can be a pain, as can letting agents.

You would have to be making a lot more than 10k a year in rent to make 10% profit. The tax bill alone will takes the rent up to over £12k to get 10% profit on its own.

The other expenses aren't small either.

I don't know many £100k properties that have a £1k rental figure.

i have never said 10% thats what socrates said, i said if someone could get 750 pound a month rent money they would get 9000 pound a year, i know there would be deductions, but you would still get more than what you would if you put 100,000 pound in the bank for a year with current rates.

so tell him i never mentioned making 10% and if i did show me where??

Like i said if someone buys when the market is at its bottom and makes 400 pound a month, theY would still be getting more than in the banks at the moment.

bristol_pilot

confused - why not lend me your £100k, I will happily pay you 9% interest for a year and at the end of the year pay you £50k back.

confused31_2

socrates wrote: »

So basically you are not going to do it for the exact reasons other people are saying - people do not want to tie their money up - especially inexperienced BTL LL's. They are scared the market will drop and want to keep their money liquid.

I agree if you know what you are doing, have the cash and find a 10% yield on BTL then get involved.

Otherwise you are in for a big shock!

Hes the only person who has mentioned 10% show me where i have???

confused31_2

bristol_pilot wrote: »

confused - why not lend me your £100k, I will happily pay you 9% interest for a year and at the end of the year pay you £50k back.

i thought pilots were supposed to be clever, i wouldnt want you flying me anywhere!!!!

How about if i buy a house for 100,000 pound, when houses hit bottom, rent it to you for 600 pound a month for 10 years, then after 10 years i will kick you out on your ear and make a nice tidy profit selling it on??

just because you have been silly with your money, your one of the buy to let losers, shame but i couldnt be happier to see that you are in the sxit


how does that sound???

tommy75

confused31 wrote: »

http://www.moneyforums.co.uk/moneyforumstopic962.html

Thats a nice graph you found there.

tommy75

So am I looking at that graph correctly? We are around that average price from Q5 2005 now?

confused31_2

I would say so 2005,2004 prices now i reckon they may go even lower.

tommy75

confused31 wrote: »

I would say so 2005,2004 prices now i reckon they may go even lower.

Well if you go off the trend of the last 40 years its looks like the market hasn't even begun to crash yet. I can't remember what imput the government had in the 90's recession or the 80's and 70's for that matter and whether they tried to stem the fall of the market with big rate cuts like this time. It looks like property is that much overpriced this time that the government have no choice but to do this to try and stop the market falling off a cliff, keeping prices inflated to try and help get out of the recession better. Wouldn't it have been quicker and easier just to let the market crash and start again where it corrects itself instead of slowing it down and causing a longer recession? Is it not just protecting people in negative equity and stopping them defaulting on their mortgages? This percentage of home owners would be relatively small anyway wouldn't it?

If the bubbles continue to rise like that in the graph over the last 40 years then I'd hate to see what the next one will do to our financial system if something is not put in place when this one finishes. :eek:

confused31_2

I started this thread and the more i have thought about it im coming round to the idea of renting my current property out and buy a additional home when the prices have come down to live in.

I currently have about 75% equity in my house and thats with the price it is now, and i have priced it at 2004 prices.

Ive looked at the buy to let mortgage and to mortgage my current 3 bed roomed house on a buy to let interest only mortgage would cost me 200 pound.

Now the house i was looking at was 249,000, its already came down to 209,000 now if that drops to 150,000 and i buy that on a fixed rate mortgage for 5 years it will be 860 pound amonth.

Ive seen houses similar to mine renting out for about 750-800 pound, now if i can get 600 pound or even 500 pound rental after the fees, after the 200 pound buy to let mortgage is paid i will either have 300-400 pound to come off my main mortgage which will drop it to between 460-560, which i should be able to easily afford.

I dont fancy letting it out myself, so im going to get in touch with a letting agent and see what the fees are and everything else.

Just had look at the letting agents and they charge 10% for letting or 15% for complete letting management so it works out about 100 pound on top for letting management, which i would go for thats if i get 650 pound rent.

Pyewacket338

confused31 wrote: »

I started this thread and the more i have thought about it im coming round to the idea of renting my current property out and buy a additional home when the prices have come down to live in.

I currently have about 75% equity in my house and thats with the price it is now, and i have priced it at 2004 prices.

Ive looked at the buy to let mortgage and to mortgage my current 3 bed roomed house on a buy to let interest only mortgage would cost me 200 pound.

Now the house i was looking at was 249,000, its already came down to 209,000 now if that drops to 150,000 and i buy that on a fixed rate mortgage for 5 years it will be 860 pound amonth.

Ive seen houses similar to mine renting out for about 750-800 pound, now if i can get 600 pound or even 500 pound rental after the fees, after the 200 pound buy to let mortgage is paid i will either have 300-400 pound to come off my main mortgage which will drop it to between 460-560, which i should be able to easily afford.

I dont fancy letting it out myself, so im going to get in touch with a letting agent and see what the fees are and everything else.

Just had look at the letting agents and they charge 10% for letting or 15% for complete letting management so it works out about 100 pound on top for letting management, which i would go for thats if i get 650 pound rent.

You could struggle to get a buy-to-let mortgage, you'll need a good sized deposit and if the house isn't occupied for any length of time, you could quickly find yourself in a mess.
I've found a house for sale close by, it's cheap enough to buy without needing a mortgage, return would give me 11% gross per year if it's fully occupied and I have a tenant lined up already, seems to be a no-brainer on paper, but scuppers my plans on moving abroad.