Spare 35k Buy to let maybe??

theartfullodger

Sigh! Handbags....

Catbells

GDB2222 wrote: »

You seem to be having a bad time at the moment. We all feel sorry for you, so try not to take it out on other users of these forums.

This Bullau seems to be causing a problem but.... I couldn't find his rude post on my thread which you quoted (and others) I haven't got my reading specs on so may have missed it but I don't think so. Unless it was removed by the mods.??

I have had another rudish post in the past and decided early on on this board that either ignore or put in their place and then ignore anyone who does this. I only respond to helpful people who realise that not everyone knows as much as they do about money. Because we are learning about it here. Its hard enough when you've just sold and living in rental without the security of a proper home (me) without having to deal with arrogant posters on here. Thanks for all who have put him in his place.

THANKS by the way to all the input on the btl thread I started. I may go for blue chip now. Am not a born landlord.

Catbells

mynameisdave wrote: »

And where does he say this? He could be buying a smaller property because of a relationship ending, or the kids moving out and a large house not needed (entirely possible given he is 6 years away from needing his pension)

That he has 30K spare makes no reference to his original purchase price, sale price, asking price of new place or sale price of new place.

To accuse other people of assumptions is a little pot kettle IMO.

Heck - I posted a question which reflects a mere snapshot of my circumstances and this person (bullau) with the aid of a phenomenal imagination begins to embroider and speculate until I hardly recognise myself. This is exactly what happened on another occasion when someone read all my previous posts and challenged me in a very uncomfortable way about my circumstances. It seems there are people who have dubious intent on here and they should be removed as they are not helpful - in fact they are harmful to this board.

GDB2222

Hi, in answer to your question, I had a couple of points that might help.

1. You mentioned a pension fund. Residential property is not allowed for a pension fund. Of course, you may have meant the term loosely.

2. It's onerous to run a BTL, and with a 25% deposit you won't have much income. It may even cost you more to run than you get in.

3. This is really a geared play on residential property. You invest £30k and buy a place for £120k. If it goes up 20%, you make £24k on your original £30k. But if it goes down 20%, you pretty much lose the lot. Is that appropriate for your circumstances?

Catbells

GDB2222 wrote: »

Hi, in answer to your question, I had a couple of points that might help.

1. You mentioned a pension fund. Residential property is not allowed for a pension fund. Of course, you may have meant the term loosely.

2. It's onerous to run a BTL, and with a 25% deposit you won't have much income. It may even cost you more to run than you get in.

3. This is really a geared play on residential property. You invest £30k and buy a place for £120k. If it goes up 20%, you make £24k on your original £30k. But if it goes down 20%, you pretty much lose the lot. Is that appropriate for your circumstances?

Thanks GDB. Re
1. I had thought that in 6 years I could sell the property and put the increased total into my pension investment portfolio but have read here that a blue chip investments over 6 years may yield more and less hassle.

2, & 3 points taken. Sounds like btl is not such a sound investment but it makes you wonder why it has been a money spinner for so many people over the years.

Fiddlestick

Catbells wrote: »

2, & 3 points taken. Sounds like btl is not such a sound investment but it makes you wonder why it has been a money spinner for so many people over the years.

Because we were in a housing bubble.

People believed the mantra that "house prices only ever go up", except when they stop going up and the economy crashes...