We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buy To Let
decafCoffee
Posts: 2 Newbie
I'm very new to this.
I'm thinking of buying a buy to let property with a friend. We have sufficient income and can put in just over 20%.
Should we be aiming to keep the property for the long term or should we be thinking that we will sell when prices increase and use the increased equity and buy two more?
I'm having difficulty pinning down what is the best mortgage option for either of those two scenarios.
I'm thinking of buying a buy to let property with a friend. We have sufficient income and can put in just over 20%.
Should we be aiming to keep the property for the long term or should we be thinking that we will sell when prices increase and use the increased equity and buy two more?
I'm having difficulty pinning down what is the best mortgage option for either of those two scenarios.
0
Comments
-
From the details of your post I have to be honest and say that I don't think BTL is for you.
Investment in property is long term - the days of boom are really over, there is a lot of costs, tax on income and gain on sales, and landlord responsibility invovled - combined with the fact that you want to purchase with a friend. What happens when they want to be released from the business arrangement.
Sorry if this is a bit negative ... put your savings into a decent investment vehicle instead.
Holly0 -
If you are looking for a quick buck then Buy to Let may not be for you. Arrangement and exit fees could mean any profit wiped out, with any profit being reliant on a rise in property prices.
Buy to Let needs to be viewed as a long term investment. If property rises in the short term then you may make a profit but if this happens then releasing equity to buy another could need a further input of cash as properties to be purchased will also have risen.
I have seen may successful landlords and unfortunately seen people lose it all.
You are going in with a friend which in a good way halves the risk but also halves any profits.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
decafCoffee wrote: »I'm very new to this.
I'm thinking of buying a buy to let property with a friend. We have sufficient income and can put in just over 20%.
Should we be aiming to keep the property for the long term or should we be thinking that we will sell when prices increase and use the increased equity and buy two more?
I'm having difficulty pinning down what is the best mortgage option for either of those two scenarios.
post up your business plan include the cash flow forecast0 -
"Should we be aiming to keep the property for the long term or should we be thinking that we will sell when prices increase and use the increased equity and buy two more?"
What makes you think that prices are rising in the short term?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards