buy to let

croc_2

as a fifty plus person and 2/3 different pensions(moved jobs etc) i'm thinking of getting into the buy to let market. need to supplement income when i retire?? does anyone out there have any practical advice, do's don'ts, before i dip my toe into this, what i'll told is a quite lucrative venture.

croc

van_persie

'Lucrative' if you bought 7 years ago and sold up last year; but hey, if you think property only ever goes up, go right ahead. If, however, you believe that market trends apply as they always have done, then why buy at the peak?
No offence meant, but at your age timing is crucial and if you buy now you may find yourself in negative equity at a time that you might want to 'cash in your chips' and enjoy the fruits of your investment.

bamberbamboo

Hi Croc,

I believe like Van Persie that yes it would be great if I'd brought 7 years earlier, property was much cheaper and why buy at the peak however 7 years ago I was struggling with two young children and trying to get my own feet on the ladder, at the moment am buying my second buy to let and this week have also put an offer on my third which both will be on interest only repayments, my first is on a buy to let repayment mortgage, I am buying when houses are expensive yes but the area I live is desperate for rental property if I was living in areas like London/Manchester etc then I wouldn't probably be doing this, so my plan is a 25 year mortgage and surley property will have gone up in the next 20 years by which time I would need to cash the two interest only properties the repayment property will be boosting my pension each week, and if I needed to I could help my children onto the ladder by passing the properties onto them at 2006 prices,

This is just my ideas an opion hope it helps.

van_persie

Wow. That's one long sentence! Interesting opinion, however.
But consider this: rental demand is not a good enough reason to buy property to let. The yields from this alone are simply not attractive enough. It's capital gain that attracts investors - flippers and long-termers alike.

my plan is a 25 year mortgage and surley property will have gone up in the next 20 years by which time I would need to cash the two interest only properties the repayment property will be boosting my pension each week, and if I needed to I could help my children onto the ladder by passing the properties onto them at 2006 prices

Do you believe there might be a drop in prices within the next few years? If so, it makes absolutely no sense to buy now, even if you were renting out with no voids. you'd still be losing out! Yes, property will cost more in 25 years but it'll also probably cost less than it does now in about 2 years. But as I said in previous post, it all depends on whether you believe house prices only ever go up or not...

F_T_Buyer

croc wrote:

as a fifty plus person and 2/3 different pensions(moved jobs etc) i'm thinking of getting into the buy to let market. need to supplement income when i retire?? does anyone out there have any practical advice, do's don'ts, before i dip my toe into this, what i'll told is a quite lucrative venture.

croc

Can you tell us why you are looking at this? What made you look into BTL? What about other investments? I am very interested.

I'm not asking for an essay, just your brief reasons why you want to go that route.

bamberbamboo

van_persie wrote:

Do you believe there might be a drop in prices within the next few years? If so, it makes absolutely no sense to buy now, even if you were renting out with no voids. you'd still be losing out! Yes, property will cost more in 25 years but it'll also probably cost less than it does now in about 2 years. But as I said in previous post, it all depends on whether you believe house prices only ever go up or not...

morning van persie

I believe that where I live there won't be a drop in prices, and if there is in two years so what I'll be two years into my mortgage and properties will be ticking over, I have two long lets lined up and one property was valued by estate agents and then as they where neighbours I mangaged to do a private quick sale saving 10, so if they did drop I think I'm covered but hey this is my opion, I'm hoping it'll work