Buy to Let - Investment ??

Jays

Hi there,

I've been searching and looking around the chat forums for discussions on the viability of buy to let for investment, but cannot find any.

Am I looking in the wrong forums?

Can anyone direct me to the right threads?

Does anyone have an opinion?

Looking forward to your replies,
Jays

abaxas

BTL is a business activity not an investment.

Also an anonymous internet forum is not the best place to get advice on taking on that quantity of risk.

http://www.landlordzone.co.uk/

is a good place to start.

Jays

abaxas wrote:

BTL is a business activity not an investment.

Also an anonymous internet forum is not the best place to get advice on taking on that quantity of risk.

http://www.landlordzone.co.uk/

is a good place to start.

Thanks for that abaxas,

Your recommended site looks interesting.

I was wondering whether or not people generally considered buy to let a good return for your money, as opposed to other investments, but I suppose that is a naive question?

Jays

abaxas

Jays wrote:

Thanks for that abaxas,

Your recommended site looks interesting.

I was wondering whether or not people generally considered buy to let a good return for your money, as opposed to other investments, but I suppose that is a naive question?

Jays

I wont give advice as I believe that people should do their homework first..

However I cannot stress enough the sums of money involved (usually >£100,000). That is a vast some of money, make sure you understand ALL the risks before stepping foot into anything of this magnitude. That is alot of money (which I doubt would be yours ie lenders) to risk.

Dont assume anything, if you dont understand it fully, walk away.

memorygirl

Hi Hon - I agree wholeheartedly

Please take time to do masses of research (I worked for a guy for 5 years who bought BTL before I dipped my little toe in). "If you think you know enough - you probably don't" was his advice to me

Now I spend 2-3 months viewing in the market to buy ONE property that it the right deal for the business I work for. Not an easy option for most. The one we are working on currrently was bought from a first time developper who thought he could make a killing and ran out of cashflow. We have picked up the pieces to try and make sure that the young families waiting for decent places to move into before Christmas can do just that. This will involve our team working 6 days a week for the forseeable future.

Please do your research - join a local Landlords Asscociation perhaps - make friends with the best letting agent in the area (to find out what lets the best) - start building up your contacts of contractors and professionals. Its a business - like any other you have a steep learning curve.

Having said that, when we hand these five families the keys to their new homes - there won't be a dry eye in the house :-) Although my big boy builders will probably claim its just dust!!!

Memorygirl

dunstonh

Would it be a mortgaged buy to let (high risk) or an unmortgaged buy to let (low/medium risk)?

Property is just one asset class of many. You can also access property in investments such as ISAs, Unit Trusts, Investment Trusts, Investment Bonds and Personal Pensions. With those you dont actually have to own the property but own shares in property portfolio. These can also include commercial property as well as overseas property.

silvercar

If you want the views of people who make a living out of BTL, try singingpig.co.uk (make sure you don't go to .com or the pigs really do sing!)

Jays

abaxas wrote:

I wont give advice as I believe that people should do their homework first..

However I cannot stress enough the sums of money involved (usually >£100,000). That is a vast some of money, make sure you understand ALL the risks before stepping foot into anything of this magnitude. That is alot of money (which I doubt would be yours ie lenders) to risk.

Dont assume anything, if you dont understand it fully, walk away.

Thanks, just out of interest, why do you doubt the £100,000 would not be mine to risk??

Jays

Angela_D_3

Jays wrote:

Thanks for that abaxas,

Your recommended site looks interesting.

I was wondering whether or not people generally considered buy to let a good return for your money, as opposed to other investments, but I suppose that is a naive question?

Jays

No is the short answer, better of with an ISA right now.

Jays

dunstonh wrote:

Would it be a mortgaged buy to let (high risk) or an unmortgaged buy to let (low/medium risk)?

Property is just one asset class of many. You can also access property in investments such as ISAs, Unit Trusts, Investment Trusts, Investment Bonds and Personal Pensions. With those you dont actually have to own the property but own shares in property portfolio. These can also include commercial property as well as overseas property.

Thanks dunstonh,

We are already exposed to such investment via our portfolio, just really wanted to read some discussion to see if buy to let would suit us.

Jays

Jays

Angela_D wrote:

No is the short answer, better of with an ISA right now.

Thanks Angela,

The ISAs are full right now, but will take you advice on board.

Jays