is it wise to invest in buy to let now?

Bermuda_John

a lot of people love to talk up doom and gloom

in the eraly 90's i bet people were saying the same............. the world is going to end!!!

i would add buying a house without a decent deposit is madness and the sure fire way to lose out.

property isnt some get rich quick scheme the TV shows make pepole beleive it is

its a long term investment, 20 years+, over that period you will be able ride out the peaks and torughs.

Ladybird20

I wished i had paid all my mortgage off for my main home rather than buy the 2nd , i have 2 BTL'S one of which i have owned for 10 yrs.I bought the second one 2yrs ago and i get great returns off both.Now i think did i really need a 2nd property the answer is NO and in retrospect i think i needent have purchased it, so if i was you pay your mortgage off and live rent free ....just my opinion

Bermuda_John

good point ladybird, i think buy to let isnt for everyone. Im sure the TV shows are to blame for all of this hype in trying to becoem a "property developer" when in fact you are becoming a landlord which is hard bloody work!!

Ladybird20

To Bermuda John........exactly.

colinbloke

plenty of people favouring paying off mortgage early over buy to let investment however...

I have about 19 years on my mortgage and could probably pay it off in 11 years (which is fine) but in 11 years time i would like to think i could be in a better property than im in now (my house is ok but we all would like to aim for more if we could). i looked on property investment as a way of building up some additional capital above my own savings towards that goal. (considering property in 11 years time could well be considerably higher in price than it is now? what is the best way to achieve my goal???)

Thrugelmir

colinbloke wrote: »

plenty of people favouring paying off mortgage early over buy to let investment however...

I have about 19 years on my mortgage and could probably pay it off in 11 years (which is fine) but in 11 years time i would like to think i could be in a better property than im in now (my house is ok but we all would like to aim for more if we could). i looked on property investment as a way of building up some additional capital above my own savings towards that goal. (considering property in 11 years time could well be considerably higher in price than it is now? what is the best way to achieve my goal???)

I would have to ask what other savings you have. ISA , pension etc.

Yes you could increasingly live in more expensive houses. However what's going to provide your income to live on?

keith969

colinbloke wrote: »

this thread has certainly made me feel far more cautious about property as an investment however i did read some where historically including the 1930's depression house prices have incresed 7% on average per year,

Its more like 2-3% when averaged over a long period, in line with long term wage inflation.

This year the smart money has been in the stock market, in the last 6 months you could have made a 20% return. And at least such assets are far more liquid than property.

Bermuda_John

and was that smart money in there when the downturn occurred and did they ride it out?

with all investments, property, shares etc if you take a long term view you will gain in the long run. if your after a get rich quick, then forget it ....... these schemes dont exist