Buy to Let??

Conrad

tidyfinance wrote:

Hi Karen,
Have you thought about investing overseas?
We rent a flat in the uk but are considering selling, and using the equity from the sale to purchase in Egypt or Morocco.

Kazza, youve done the right thing.

I had a few UK B2Ls but recognised now is the time to sell. Ive invested abroad including Morocco - Ive got a villa for a quater of the price of a Spannish comparible, the resort is like nothing Ive come accross anywhere - even has its own hospital.

Im confident I will at least double my money in 3 years, whereas UK property is likely to come to a standstill or possibly even go down.

I bought in Morocco here (not sure if Im allowed to post a link- but here goes)

http://www.lejardindefleur.com

Conrad

Paulxo wrote:

1) Acquire asset that tenants pay for.

No this is a misconception, if it were true every investment Bank and fund manager would be buying to let - but they are'nt (appart from in Germany).

The rent will only cover the interest portion, thats the interest on the mortgage AND THE £20000 DEPOSIT.

So all you are doing is standing still, noone is paying for anything.

£20K could be invested elsewhere and produce a better return.

People who say 'but its for the long term' dont understand the concept of investing, no offence but if you dont understand this point you shouldnt be taking risks.

Conrad

prudryden wrote:

Exactly the same as investing in any market, which has cycles.

All the investment manuals tell you its all about timing.

Simply buying and riding cycles is not investing, thats just storing money which may have done a lot better in the Bank.

BUY LOW SELL HIGH - still applies you know, always has, always will.

If B2L is so great why dont all the London funds simply do this, why fiddle about with the stock market? More important WHY ARE SO MANY OF THEM BUYING B2L IN GERMANY?

WHY - because the BUY LOW SELL HIGH, NOT BUY HIGH A KEEP FINGERS CROSSED

dunstonh

People who say 'but its for the long term' dont understand the concept of investing, no offence but if you dont understand this point you shouldnt be taking risks.

and when you ask what they mean by long term, they often respond 10 years in the misbelief that is long term. A long term cycle with what they mean should be 15-20 years. Especially if they want to ride through the cycle and come out with a profit at the other end. Many of those that bought just before the 91 property crash only broke even on property price a few years back.

prudryden

Conrad wrote:

All the investment manuals tell you its all about timing.

Simply buying and riding cycles is not investing, thats just storing money which may have done a lot better in the Bank.

BUY LOW SELL HIGH - still applies you know, always has, always will.

If B2L is so great why dont all the London funds simply do this, why fiddle about with the stock market? More important WHY ARE SO MANY OF THEM BUYING B2L IN GERMANY?

WHY - because the BUY LOW SELL HIGH, NOT BUY HIGH A KEEP FINGERS CROSSED

Which investment manuals? I've read quite a few in my time since passing the series 7 NYSE exam 30 years ago.

If you are talking about the stock, option, high yield bond, commondity markets or forex markets when you speak about timing the market, then you are talking about trading, not investing. If you buy to hold for several years, then you are investing and not trying to time the ups and downs.

If you are talking about buying a property to pass on to your children, then you are talking about passing on a legacy, not trading. Cycles in that case are irrelevant.

Karen_is_confused!

I really appreciate all the advice. Keep it coming!!!
I do intend to keep the house as long as I can to pass on to the kids. I'm not in it for the rental money each month for gain or even to sell in a few years and make a profit on appreciation.
I guess my end ideal would be to have a house for my children to have in a few years and in the process help out my sister with somewhere to live. (she's not likely to leave).
The apartment is in Ipswich, Suffolk, but on talking to a different set of agents today I feel the rent may be unrealistic.
It would fit in better with my long term plan to get a good old house and keep it!

prudryden

dunstonh wrote:

and when you ask what they mean by long term, they often respond 10 years in the misbelief that is long term. A long term cycle with what they mean should be 15-20 years. Especially if they want to ride through the cycle and come out with a profit at the other end. Many of those that bought just before the 91 property crash only broke even on property price a few years back.

For the first time Dun, I don't fully comprehend what you are saying. You are quoting Conrad, who we all know thru previous posts is totally ignorant on investing. Why??

You must have elderly clients who feel 5 years is an eternity and you would probably agree with them and tailor their investments appropriately. Short term to them is one year.

Jim_B_3

prudryden wrote:

Which investment manuals? I've read quite a few in my time since passing the series 7 NYSE exam 30 years ago.

It must be all about timing. Buy it at a time when it's cheap, sell it at a time when it's expensive.

I could sell this at a seminar and make a fortune.

prudryden

Jim_B wrote:

It must be all about timing. Buy it at a time when it's cheap, sell it at a time when it's expensive.

I could sell this at a seminar and make a fortune.

What a novel idea!!!

hearts

It depends on your area. How are house prices where you are Karen? Looking at the figures above could you afford to sustain these payments over a long period?
I am not a believer as some of the above are, that there is a massive fall on the horizon. If there is it will be southern as it was previously. Prices in London are ridiculous.
Even assuming there was a crash as long as you can hold on long enough it will turn round.
If you are sure you can afford it. Go for it!