Is it still possible to make a profit on BTL???

BobProperty

sm9ai wrote: »

All this long term stuff.

Would it really be good long term investment? The people who you would have to sell to are the people who are priced out. (missed the boat as so many like to say!)

So to make money long term you need to sell to those who have missed the boat. So how are they suddenly going to catch the boat when its time to cash in?

Or have I missed something?

Yes - The value of your investment may go up or down.

Massive_2

sm9ai wrote: »

All this long term stuff
...
Or have I missed something?

The secret of successful BtL is, of course, to never have to sell.

But that's another story...

ds1980

ollyshaw wrote: »

I know this is not scientific but......

£1000pm will rent you a lovely 5 bedroom house

http://www.rightmove.co.uk/viewdetails-6373443.rsp?pa_n=1&tr_t=rent

Where as the cheapest 5 bedroom is £180k.

http://www.rightmove.co.uk/viewdetails-13727659.rsp?pa_n=4&tr_t=buy

Olly

Nice try maybe look somewhere other than whitley bay the north as far as im concerned is anything below scotland and above birmingham...........quite a lot to choose from then?

Conrad

MORPH3US wrote: »

Given the current financial climate, I personally would max out ISA's and HISA's with my money rather than get a BTL!

M

As part of my stratergy I also max - out on ISA's as does my wife but we consider such investments as just potential froth.

The problem with this type of investing is you cant gear - up.

So £20000 into an ISA over 3 years and the value doubles you get £40000.
£20000 into property with an £80000 mortgage (covered by rent) and the price doubles you get £20000 back.

I hope Im wrong on this as we put so much into ISAs (plus more into other packaged policies).

As a safeguard we also invest in property and property shares regularly.

ollyshaw

ds1980 wrote: »

Nice try maybe look somewhere other than whitley bay the north as far as im concerned is anything below scotland and above birmingham...........quite a lot to choose from then?

Well I consider anything south of the tyne "down south"

Yeah I know my example doesn't really mean anything but at least they are in the same postcode. Have you got any examples that come close to the figures you were suggesting?

Olly

Conrad

sm9ai wrote: »

All this long term stuff.

Would it really be good long term investment? The people who you would have to sell to are the people who are priced out. (missed the boat as so many like to say!)

So to make money long term you need to sell to those who have missed the boat. So how are they suddenly going to catch the boat when its time to cash in?

Or have I missed something?

The bit your missing is that many B2Lers aim to have the mortgage cleared say in 25 years - having been largely paid by a tenant. This then gives them free income for ever. Most professional LLs dont plan to sell.

I on the other hand have sold mine! I thought I could generate better returns investing abroad now (buy low sell high and all that). I was no longer comfortable in UK B2L as too many people are getting in - historically thats usually the time to get out. I'll buy back in after the big crash if it comes. If it doesnt Ive lost nothing as Ive simply invested in less risky markets (less risky in price aquisition terms that is).

aqueoushumour01

Conrad wrote: »

As part of my stratergy I also max - out on ISA's as does my wife but we consider such investments as just potential froth.

The problem with this type of investing is you cant gear - up.

So £20000 into an ISA over 3 years and the value doubles you get £40000.
£20000 into property with an £80000 mortgage (covered by rent) and the price doubles you get £20000 back.

I hope Im wrong on this as we put so much into ISAs (plus more into other packaged policies).

As a safeguard we also invest in property and property shares regularly.

Since when is an ISA going to double in value over 3 years ???

Surely if you put £20k into a property with £80k mortgage and house prices double, the house is now worth £200k so you've made £100k profit not £20k as you state

ollyshaw

aqueoushumour01 wrote: »

Since when is an ISA going to double in value over 3 years ???

Surely if you put £20k into a property with £80k mortgage and house prices double, the house is now worth £200k so you've made £100k profit not £20k as you state

I see your point, but then a stocks and shares ISA is just as likely to double in value as house prices.

Olly

MORPH3US

Conrad wrote: »

As part of my stratergy I also max - out on ISA's as does my wife but we consider such investments as just potential froth.

The problem with this type of investing is you cant gear - up.

So £20000 into an ISA over 3 years and the value doubles you get £40000.
£20000 into property with an £80000 mortgage (covered by rent) and the price doubles you get £20000 back.

I hope Im wrong on this as we put so much into ISAs (plus more into other packaged policies).

As a safeguard we also invest in property and property shares regularly.

Sorry, I don't understand your post above. could you explain please?

Thanks

M

sm9ai

Conrad wrote: »

The bit your missing is that many B2Lers aim to have the mortgage cleared say in 25 years - having been largely paid by a tenant. This then gives them free income for ever. Most professional LLs dont plan to sell.

I on the other hand have sold mine! I thought I could generate better returns investing abroad now (buy low sell high and all that). I was no longer comfortable in UK B2L as too many people are getting in - historically thats usually the time to get out. I'll buy back in after the big crash if it comes. If it doesnt Ive lost nothing as Ive simply invested in less risky markets (less risky in price aquisition terms that is).

True, but its not free income as the properties require maintenance. Probably easier to put the money in an high interest account.(Well now, obviously it wasn't 5 years ago.)