Mail - Buy-to-let is now a safer home for savings

brit1234

I can't see how taking £100k out of a house in a falling market is a sound investment. What you are effectively doing is doubling the rate of equity lose as it is now on 2 properties.

I know cash is pretty poor at the moment but surely shares would be a good bet. By cheap now and see them rise with all the QE. Sell half of them in about June, turn them into cash in a high interest monthly account. Then buy more shares with that cash on the next share downturn.

Cleaver

brit1234 wrote: »

I know cash is pretty poor at the moment but surely shares would be a good bet. By cheap now and see them rise with all the QE. Sell half of them in about June, turn them into cash in a high interest monthly account. Then buy more shares with that cash on the next share downturn.

Hang on, let me get a pen to make a note of all this. So, all I need to do is buy shares cheaply, watch them go up, sell them when they go up, then just repeat this until I'm rich? This is quite a fantastic idea I'd never even thought of. Have you thought of going public with it Brit? It's oh so easy and foolproof.

heathcote123

Aberdeenangarse wrote: »

Has he moved in with your sister as well?;)

I thought it was getting a bit crowded round here.

kabayiri

chucknorris wrote: »

Are they going to keep their investment properties long term or are they looking to get out when they can?

I'm not sure of their plans and to be honest I don't know if they are. One of them, my cousin, just said it seemed like a good idea.

I don't think this sort of ownership attracts any sort of emotional investment. If house prices dip there may be a temptation to dump them onto the market. It's no different to shares though, some people will panic and sell, some won't.

MrRee_2

BTL is the only, single, way to get returns of 7% +

The Capital Gain isn't so important at the current time - but, looking at the general increase in property values, makes it a no brainer .... especially for those fortunates, like me, who don't need to bother with Mortgages.

Cleaver

MrRee wrote: »

BTL is the only, single, way to get returns of 7% +

Aside of course from the shares, funds, bonds and other investment options that yield 7% or more.

the_flying_pig

the first obvious thing about this story is that it's pure fluff - there's no hard, or even soft data on how much BTL there is out there. given that many fewer BTL mortgages are being dished out than during the bubble they could easily have written about the sector being 'on its knees' or 'in the doldrums' and been no less accurate.

the second obvious thing is that behaviour of the sort described here is being entirely driven by ZIRP. why wouldn't people prefer a low return to a zero one?

IveSeenTheLight

shortchanged wrote: »

Now which MSE resident property ramper is Mr Michael Howard in the picture?

Is it Hamish, Rinoa, ISTL, Turnbull, Sibley (no can't be sibbers, he has a Thai bride)?

Anyone going to own up?


Also the little baby already looks like he has the face for hard nosed business.

Two things: -

1) It's not me.

2) I don't ramp property. Indeed, I predicted 2011 would be -1.5% YOY.how very "Bullish" of me

I merely base my opinion on the facts and a huge dose of reality.
I'm sorry if you don't like that.

shortchanged_2

IveSeenTheLight wrote: »

Two things: -

1) It's not me.

2) I don't ramp property. Indeed, I predicted 2011 would be -1.5% YOY.how very "Bullish" of me

I merely base my opinion on the facts and a huge dose of reality.
I'm sorry if you don't like that.

Maybe you have been more realistic about your predictions than others on here. But there is no doubt that being in the BTL business you have a vested interest in ramping property prices.

kabayiri

the_flying_pig wrote: »

the first obvious thing about this story is that it's pure fluff - there's no hard, or even soft data on how much BTL there is out there. given that many fewer BTL mortgages are being dished out than during the bubble they could easily have written about the sector being 'on its knees' or 'in the doldrums' and been no less accurate.
...

I have certainly revised my view, after a brief discussion with DH last night.

She pointed out a few more friends we know who own BTL property, it just doesn't come up in conversation which is why you forget about them.

I suspect its more commonplace than the public thinks.