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Debate House Prices
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Financial Transaction Tax - Does it make property more attractive to investors?
Comments
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shortchanged wrote: »Renoman but this is the point I am trying to make, is how do you pay down the IO mortgage if the the rent you get barely covers the mortgage and the other overheads.
Personally I can not see how this fits the definition of Buy to Let.
It is Borrowing to Let.
It gives those of us who were smart and forward thinking enough to see that property prices were at historically low prices, and then invested their Cash in order to obtain a high return, a bad name.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
shortchanged wrote: »I see what you are saying Generali but inflation will also affect such costs as repairs, insurances etc.
It will but not the principal sum owed which is probably the largest cost in your example.
When I can be @r$ed I'll get the spreadsheet out and do some sums.0 -
Personally I can not see how this fits the definition of Buy to Let.
It is Borrowing to Let.
It gives those of us who were smart and forward thinking enough to see that property prices were at historically low prices, and then invested their Cash in order to obtain a high return, a bad name.
Yes this is exactly what I think it is these days.0 -
shortchanged wrote: »Renoman but this is the point I am trying to make, is how do you pay down the IO mortgage if the the rent you get barely covers the mortgage and the other overheads.
The problem you've got is that your calculations are fixed for 25 years. You have the BTL guy making £180 per month for 25 years. No wonder you can't see where the money comes from to pay down the mortgage.0 -
RenovationMan wrote: »The problem you've got is that your calculations are fixed for 25 years. You have the BTL guy making £180 per month for 25 years. No wonder you can't see where the money comes from to pay down the mortgage.
Yes I suppose you're right.
It could be more or it could be less.0
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