Is it the right time to buy??

[Deleted User]

we never rented and we are laughing now. First house bought on a big mortgage at age 23. Then up and up through the years. Then steady for several years while the house appreciated in value and mortgage paid off. Lived there with no mortgage and no renting for years.

Later downsized one step and released cash. We can do this two more times and eventually will rent a small apartment when we are old. In the meantime we will be enjoying all the cash released because we were sensible enough to buy in the first place

So OP look ahead and enjoy your own home while doing so

missk_ensington

Kittie- instead of releasing that cash to waste on frivolities, you should buy a second property as an investment. In my area you can buy a chinese takeaway with 2 bed accomodation above for £120,000 (Freehold) You might have no interest in running a chinese but you can sell a 12 year lease for £35,000 PLUS charge them £400+ a month rent AND rent out the accomodation above, maybe for £400 a mont also. Thats £800 a month revenue from a £120,000 investment plus £35,000 cash back every 12 years. This is paying the mortgage off over time, you then do it again, release equity to buy another..... before you know it you've got an empire!!!

[Deleted User]

missk no way. The yield is too low. I get a yield of minimum 4.5 to 7% on my share investments plus capital growth and I can easily sell or buy at will with no worries

missk_ensington

Not so sure about shares at the moment, my Dad lost 5k in a couple of days last week, or so he said.

The value of a Freehold proprty will increase massively, my Mum bought restaurant and 2 s/c flats for £200,000 an 7 months later (after renovation and sorting out the contracts) its valued £320,000. The leaseholder of the reastaurant has just offered her £300,000 cash to buy her out but she said no cos it'd all go on Capital gains tax, which is always a bummer!

[Deleted User]

missk
"will increase massively"

You have a crystal ball?

The BTL property market is overbought and now is not a good time to BTL

I gained 5k on shares in a couple of days last week. It is all about timing and what you are good at and I don`t pay capital gains tax in an isa or sipp

gordon74

missk_ensington wrote:

Kittie- instead of releasing that cash to waste on frivolities, you should buy a second property as an investment. In my area you can buy a chinese takeaway with 2 bed accomodation above for £120,000 (Freehold) You might have no interest in running a chinese but you can sell a 12 year lease for £35,000 PLUS charge them £400+ a month rent AND rent out the accomodation above, maybe for £400 a mont also. Thats £800 a month revenue from a £120,000 investment plus £35,000 cash back every 12 years. This is paying the mortgage off over time, you then do it again, release equity to buy another..... before you know it you've got an empire!!!

Now I know why their food is pricey......:D

meanmachine_2

I know I keep boring people with this, but I just have to remind everyone that property is classed as a high risk investment....for a reason.

Yes, it falls on deaf ears, but when I read some posts in which "my mum has made this amount and my mum has done this", it's only because that person has ridden a 10 year bull market.

Don't forget that you only "make money" by taking money from other people. And that flow of money can go into reverse.

There. Everyone suitably bored? Back to your "houses only ever go up" conversations...

lowis

my dad made £285,000 on his last property, he bought if for £2,500 cash and recently sold it for £287500

he did live in it for 40 years and double it's size with an extension though

MORPH3US

meanmachine wrote:

I just have to remind everyone that property is classed as a high risk investment

By who? and why?

M

F_T_Buyer

MORPH3US wrote:

By who? and why?

M

It's classed as high risk because you generally borrow money. I.e. it is geared.

House prices go up, you benefit a lot, house prices go down, you lose a lot.