100% BuyToLet Mortgage

herbiesjp

dunstonh wrote:

Of course I would. It's what I get paid to do.

At the end of the day the OP can totally ignore us and do what he/she likes. However, it does no harm to make sure that the areas we are commenting have been considered.

You say that you feel they have done their own research. How come there is the need to ask about lending here and how come the yield had to be explained. It could be that they know all the costs and information but under other names or they havent mentioned it yet on this thread. Personally, I see this example as a massive risk for amount of potential gain and the things at risk are not just the buy to let property but the primary residence and future lifestyle.

I think this thread is covering everything it should do in helping the OP make their own mind up. I hope bbasra takes the comments into consideration and sees them as constructive rather than negative even if it isnt what he/she wants to hear.

This is the beauty of these forums - an open discussion for all to join. That is waht it is all about. Sometimes you will not like what you hear, but it might just be that something that stops you from making an expensive mistake.

The OP will make their own decision based on their own research and any useful information that is forthcoming from the posters

poopscoop

mr_fishbulb wrote:

If it was me who wanted to start up my own business I would definitely want to be told all the negatives.

would you also want to know the positives of starting your own business as well?

poopscoop

dunstonh wrote:

Of course I would. It's what I get paid to do.

At the end of the day the OP can totally ignore us and do what he/she likes. However, it does no harm to make sure that the areas we are commenting have been considered.

You say that you feel they have done their own research. How come there is the need to ask about lending here and how come the yield had to be explained. It could be that they know all the costs and information but under other names or they havent mentioned it yet on this thread. Personally, I see this example as a massive risk for amount of potential gain and the things at risk are not just the buy to let property but the primary residence and future lifestyle.

I think this thread is covering everything it should do in helping the OP make their own mind up. I hope bbasra takes the comments into consideration and sees them as constructive rather than negative even if it isnt what he/she wants to hear.

Maybe it's just me, but it seems that everyone's glass is half empty

dunstonh

Maybe it's just me, but it seems that everyone's glass is half empty

Not at all. Look at all the people that took out endowments on the potential of lump sum surpluses and big money. Now they are almost all saying that had they been aware of the risk they wouldnt have done it. That is what we are saying here.

There is a risk. This case represents a very high risk (based on what has been written so far). When you take high risk, you expect high returns and at the moment the potential likely returns are not in line with the amount of risk he is taking.

Do you want your professional advisors (and forum posters ) giving you only one side of the story or both sides to allow an informed decision to be made?

bbasra

Thanks everyone for the replies. No offence taken, excellent information.

You guys are right, as i am in the process of purchasing a residential property, i should focus on that right now, and i really dont have nor will have spare cash for the risks mentioned by dunstonh and i dont want the risk of going into negative equity.

I agree, this is a huge financial comitment for such a small yield, and due to the fact my mortgage for my new property is for £250K, but i was thinking long term ie eventual ownership of the property. I know i would not hardly gain anything from this situation in the short to medium term, apart from overstretched finances and hassle, but i just want to secure my future......

I should be Self Employed now....Start IT Contracting.....

mr_fishbulb

poopscoop wrote:

would you also want to know the positives of starting your own business as well?

For sure. Both would be best