Buy to let fever?

poopscoop

meanmachine wrote:

Yes, but to me that's what makes property investment a "high risk" strategy. In fact, it's classed as a high risk investment because of this gearing aspect.

No, houses themselves don't go bust, but the fact that someone is risking the family home in all of this makes it a much bigger gamble than me setting up a LTD company, then going bust.

If that happens, my liability is limited. If there's a property crash, my kids could be out on the street.

BIG difference.

I'm staggered that some people aren't aware of this. It's almost as if "borrowing someone else's money" is seen as an advantage. On the upside yes, but when the market turns south, you're in DEEP trouble.

yes people are aware of this. You heard of OPM/OPT/OPE?

But if you were in business you would know that even though setting up a limited company may protect you. Banks will also want personal guarantees if you want to borrow x amount when setting up businesses. It happened to Duncan Bannatyne, he had to sign his house and other things over as a personal guarantee.

meanmachine_2

I don't think most of these BTL latecomers ARE aware of the risks they're undertaking.

They see it as a win-win scenario, borrowing someone else's money on a gamble where there is only one outcome.

The fact that speculating in property is regarded as a high risk venture, comparable to stocks and shares tells you that it isn't a one way bet.

I'm not saying that, at the right time, property isn't a terrific way of making money.

But there are right times and wrong times.

TV shows perpetrate the lie that it's always the right time. Absolute garbage.

poopscoop

meanmachine wrote:

I don't think most of these BTL latecomers ARE aware of the risks they're undertaking.

They see it as a win-win scenario, borrowing someone else's money on a gamble where there is only one outcome.

The fact that speculating in property is regarded as a high risk venture, comparable to stocks and shares tells you that it isn't a one way bet.

I'm not saying that, at the right time, property isn't a terrific way of making money.

But there are right times and wrong times.

TV shows perpetrate the lie that it's always the right time. Absolute garbage.

Any sizeable investment is regarded as high risk. Stocks and shares, property, your own enterprise.

Tassotti

okay...been overcome by the doom mongers.

Portfolio for sale....Value £7300000


Passive Income £8k per month

Going to take the profit( 3.2 million) and invest in gold

Any advice on stocks and shares?

nelly_2

Tassotti wrote:

okay...been overcome by the doom mongers.

Portfolio for sale....Value £7300000


Passive Income £8k per month

Going to take the profit( 3.2 million) and invest in gold

Any advice on stocks and shares?

yeah dont buy rightmoves

ManAtHome

Tassotti wrote:

okay...been overcome by the doom mongers.
Portfolio for sale....Value £7300000
Passive Income £8k per month
Going to take the profit( 3.2 million) and invest in gold
Any advice on stocks and shares?

Nah, you've missed the 90% increase over last 3 years (although projecting that forward in TV style, you could buy the whole of the UK in 10 years time...lol).

Putting a couple of mil in the B/Soc and the rest under the mattress should give you a similar return.

bingobango_3

lynzpower wrote:

100pm grocery challenge (for 2)

Month 2- 53.89.

:eek: tell me how, tell me how!!!

lynzpower

Only 2.5 weeks into the month so far, but hoping we will just scrape it in bingobango, under budget. No value meat either lol

bingobango_3

LOL! I thought it was 53.89 for the whole month!

lynzpower

cheers for reminding me, I spent a bit more this week, so updated!

MAybe when I get the hang of it I can go down to £50 a month lol but will be living off the chives in the garden lol

Sorry for taking this all OT