Chasing the BTL Dream

carolt

Hope you've got your trusty tin of magnolia at the ready.

kriss_boy

I want to live the dream too!!!

Despite my girlfriend and I being on decent wages and living up in scotland where you can get a mansion for 400K we realise we will never have a big family home until we are too old to really appreciate it!

We are in our 20s and would love to have a big nice house in 4 or 5 years time.

Answer? Buy a couple of beat up 50K flats in the area. At that sort of money the rent will cover the mortgage so surely 5 or 6 years down the line you'll be well on your way to a good 15/20K profit.

Buy a few of them and sell em when you hit 30 to have enough capital for a big house of your own... sounds good on paper anyway...

HammersFan

Mewbie how about this alternative? Pay rent (forever) and work until at least 70. Your OP is a fantastic example of a daft argument that has been thoroughly dismantled many times on here by people far cleverer than yourself. Have a nice day.

baileysbattlebus

mewbie wrote: »

I want to be rich and have a nice pension so I thought it's time to get into this BTL thing. So I have been looking at properties and am keen to explore any avenue, or road - f*ckin lol.

Anyways. I spied an 85k flat which could probably rent out for about 450 a month. Allow for voids 10 x 450 = 4500. 85k x 5% borrowings = 4200. So a nice profit on my 85,000 pounds of 300 hundred pounds a year. Not bad I thought.

However the service charges come to 200 a quarter. 800 a year. So now I'm 500 quid behind.

Plus I can't borrow the money anyway because apparently I need a deposit and get this - the fascists want the rent to cover the mortgage payments by 125% or something ridiculous.

Anyway I'll keep looking - it's the way to get rich obviously
.

OK, I'm a bit older than you (quite a bit) and I'm able to buy 3 of the £85k flats for cash. Rent them out for £450 per month. I already have a decent pension. As we wouldn't be servicing a mortgage we would be able to keep the rents at a reasonable level and hopefully be able to attract longer term tenants.

The rental income would pay for us 2 or 3 decent holidays a year and the rents would build up a decent capital sum over time, we wouldn't need the income to live on and the flats would be sold in about 20 years or when we die and the proceeds and capital built up would give our grandchildren a start. And if we did need the money ourselves it would be there.

Seriously, it's an option I've been mulling around for a few months, probably won't do anything about it - but it's an option. And I will keep my options open.

Not a way to get rich quick, but a fairly reasonable investment over the long term I would have thought.

carolt

HammersFan wrote: »

Mewbie how about this alternative? Pay rent (forever) and work until at least 70. Your OP is a fantastic example of a daft argument that has been thoroughly dismantled many times on here by people far cleverer than yourself. Have a nice day.

What has paying rent got to do with it?

The OP is talking about buying an investment, silly, not to live in. Buying places to actually live in yourself, rather than rent out and make a killing, is sooo 2005.

Do keep up.

caroline2960

<However the service charges come to 200 a quarter. 800 a year. So now I'm 500 quid behind >

But at the end of the mortgage period, 25 years or whatever, you will have a house with no mortgage which has cost you approx 500 quid a year, not a lot for a nice little pension fund when the time comes.

C

lostinrates

caroline2960 wrote: »

<However the service charges come to 200 a quarter. 800 a year. So now I'm 500 quid behind >

But at the end of the mortgage period, 25 years or whatever, you will have a house with no mortgage which has cost you approx 500 quid a year, not a lot for a nice little pension fund when the time comes.

C

well, he has a paid for term leasehold ,one must presume, if he had a service charge.

ninky_2

mewbie wrote: »

I've realised I'd need a very big jar to save 500k in. Because prices will go up a lot in 20 years obviously.

yeah they double every 7 years according to the wilsons so you're quids in i reckon.

Peelerfart

I think I'll wait for mewbie to start , give it say a year and then start making very big jars - I'll be rich quicker than everyone !

Harry_Powell

Oh, my mistake . I thought this was going to be an informative thread about the pros and cons of a property investment strategy and discovered it's yet another waste of time thread created by our resident clown, mewbie.

Do you lot not tire of all the b*tching? Can you not just use the power of debate instead of creating these pointless threads, that are designed just to cause arguments and to offend?

Everyone seems to rage about your humour mewbs, but you must have peaked before I joined because all have seen are the jealous ramblings of a bitter man.