FTB - Buy to Let?

oyohbb

F_T_Buyer wrote:

Welcome.

Unfortunately you are (well, I assume you are) in the losing generation - the ones in their 20s or below, who are priced out of home ownership in this country.

The best thing you can do is educate yourself about economics, society, policitcs and what's generally going on in this country. Soon you will come to realise what this governments policies are, and how to avoid the fallout when it comes.

You're right being 25 years old I am in that losing generation... I am aware of economics, politics etc. and I have some semblance of an idea about the government policies but I obviously have no idea of when this fallout will be. It could be 2 years it could be 10 years, but at some time in the next couple of years I will have to buy so I was just thinking whether to buy now or later.

lynzpower

I have taken interest rate rises into account and the rental money will be a bonus not essential to pay the mortgage.....

You say that theres nothing under 200k, not so, I dont know what you are on about there is stacks in london under 200k, I know Ive been looking at buying at around the 150k mark myself after I sell this place.

Heres what I dont get. You can afford to pay the mortgage on the place whether someone lives there or not? So why not live there yourself??

PoorDave

Tassotti wrote:

I'm going to start investing in umbrellas and rent them out on a monthly basis

What's the yield on umbrellas?

To be honest I think you're too late to get into the market. You're too late to make any real money.

Golden Brown is planning to increase taxes on umbrellas.

I blame people like you investing in umbrellas for my inability to buy an umbrella, not the fact that i can't be bothered to save for an umbrella deposit.

Also people whose parent's give/lend them money to buy umbrellas make it unfair for honest working people like me.

oyohbb

lynzpower wrote:

You say that theres nothing under 200k, not so, I dont know what you are on about there is stacks in london under 200k, I know Ive been looking at buying at around the 150k mark myself after I sell this place.

Heres what I dont get. You can afford to pay the mortgage on the place whether someone lives there or not? So why not live there yourself??

You're quite right I missed that part out! At the moment my dad is getting on a bit and has a dodgy ticker so I want to stay at home for a couple of years to keep an eye out for him and help him do up the house. Once I move out I want to stay as close as I can to him and the area where we live at the moment is pretty pricey. As it is only the both of us at home I wouldn't want to leave him by himself at the moment....

lynzpower

So basically the top & bottom is you want to buy somewhere for the sake of it? If you believe that prices will go up faster than your investment think again. If you have ( using my figures here) a 75k IO mortgage, you'll pay somewhere around the 350-400 pcm in INTEREST TO THE BANK. Dead money. Id save equivalent to a mortgage payment and your life insurance contents, buildings insurance in a regular saver account. Sod all risk.

BobProperty

PoorDave wrote:

What's the yield on umbrellas?.....

It's not been good enough for me for a few years now.
Have you seen the prices of Umbrella futures? Highest they've ever been. :rotfl:

stphnstevey

F_T_Buyer wrote:

Some posts on this website make me laugh so much, I cry.

If the sky is going to fall on our heads, what's the harm in getting an umbrella? if someone wants to lend me an umbrella for 1p a month, who's the fool?

From previous posts, its obvious you haven't been in property long enough to understand it. So I won't waste my time trying to convince you, it's your loss not mine.:rotfl:

You don't need an umbrella and can enjoy the sunshine if you don't listen to the fools that say its going to rain all the time.

dunstonh

Going with a mortgaged buy to let involves risk.

Risk doesnt mean you dont do something it just means you need to understand it and make sure you are happy with the level of risk you are taking.

There are opportunities with buy to lets but you have inexperienced people going into it taking on unsuitable propertes with big mortgages without knowing the risk they are taking.

PoorDave

BobProperty wrote:

It's not been good enough for me for a few years now.
Have you seen the prices of Umbrella futures? Highest they've ever been. :rotfl:

Scandal.

Good job i sold all mine (except the one i use for myself) then to some mug who was convinced they were the future

PoorDave

dunstonh wrote:

Going with a mortgaged buy to let involves risk.

Risk doesnt mean you dont do something it just means you need to understand it and make sure you are happy with the level of risk you are taking.

There are opportunities with buy to lets but you have inexperienced people going into it taking on unsuitable propertes with big mortgages without knowing the risk they are taking.

Agreed.

As soon as you mention "risk" people get all jittery, yet all we try to do is talk about the assessment of the size of the risk involved.

There are people who meet the lenders critieria (own you own home, 15% deposit, 125% of the mortgage payments coming in each month in rent etc) but who go into BTL without looking into what it actually involves, and without realising that they're right on the line as a sitting duck if and when interest rates go up.

Someone on here was trying to tell me rate increases are all to do with Japan, but refused to explain, giving the feeling it was beneath him, when it seemed more like he didn't know