Buy to let? Or put the money in the bank?

clutton_2

i never ever ever recommend that anyone buy a BTL property that they have to subsidise from day one, i think it is madness.

stilernin

Thanks to everyone for their views. I am still weighing everything up.

Have found a property close by that is being rented for £880 pm (10560pa) that has one bathroom. Mine has 3pce bathroom with shower and 3pce shower room.

This makes the figures look a bit better!! I had used the figure of £700 in my original email as a conservative estimate to cover voids etc. I'm a novice with loads to learn I'm sure, but not entirely naive.

Now waiting for some quotes and some renegotiation.

I'll keep you posted.

realwildone

Figures are house price £155000 (to be negotiated now survey received!) likely rent £9000 (conservative estimate). High demand in the area for rental accommodation.

Ha ha ha ha I would rather stuff my money down the throat of a dead cat

LittleTinker

How about buying abroad?

stilernin

LittleTinker wrote:

How about buying abroad?

Am relocating, so will live in property while it is sorted and then will find a property to live in myself.

Sisyphus

LittleTinker wrote:

How about buying abroad?

yes, a great alternative to a bad investment in this country, is an investment you know absolutely nothing about in another country. Nice advice.

ascollen

BTL can still be good business, but I agree with abaxas - it is a business, not an investment.
Figures can still add up with non HMO BTL's depending on location (e.g. Burnley).
Do your homework and do you sums...

Anon

We are currently looking at our options - we currently own our own home (semi, nice area), but are looking to move up in size. Currently in the fortunate position of no mortgage. For the next size up, we could also, at a stretch, buy with only a small mortgage (assuming selling our current home), or would it be better to (re)mortgage our current property as BTL to use that money to buy the new house (assuming BTL mortgage covered by rental)? I note that there was little positive to say about BTL above but we are weighing up options before deciding whether to sell this one and end up in a housing chain.

Many thanks

Anon

Tassotti

Hi Anon

Don't be discouraged by a few posters who have no real idea about how to make money.

Your idea will work out just fine as long as you do the research.

By this, I mean, calculate the interest payments if you remortgage.

Speak to letting agents to obtain a realistic price (as a renter) for letting the property (add insurances and 2 months voids per annum {exaggeration on the voids})

Do the figures.

May be better investments out there at the moment,but the saying always holds true 'safer in bricks and mortar'

I will probably get slated for this but I am a BTLetter who makes a decent profit (even in thses days)

Time to raise the rents

Tass

lynzpower

Tassotti wrote:

Hi Anon

Don't be discouraged by a few posters who have no real idea about how to make money.

Your idea will work out just fine as long as you do the research.

By this, I mean, calculate the interest payments if you remortgage.

Speak to letting agents to obtain a realistic price (as a renter) for letting the property (add insurances and 2 months voids per annum {exaggeration on the voids})

Do the figures.

May be better investments out there at the moment,but the saying always holds true 'safer in bricks and mortar'

I will probably get slated for this but I am a BTLetter who makes a decent profit (even in thses days)

Time to raise the rents

Tass

Oh come on Tassotti. We all know that money is not safe in property. Id go as far as to say moneys safer under my bed than in property.