To Buy or To Save

dimbo61

So you put down the £54K as a deposit and borrow £96K over 20 years at 6% ( you should get a better rate with a 25% deposit)
Your mortgage would be £688 a month
Still want to rent for years to come ?
Every year you get older now means you have less time to repay the debt as many lenders will not lend past 65 years of age

Darojo65

hello11 wrote: »

hi darojo65,

what investment bond do you have?i am just interested because i am thinking of investing some money right now and 3800 on 54000 seemed not a bad return-even though you are'nt guaranteed that every year!

Hi the Bond is with Clerical Medical.

Darojo65

tim123456789 wrote: »

OK lets try not to be so cryptic this time.

If you are buying this house to live in for a reasonable number of years (and not as an investment), then the answer to whether you should buy a house today or not depends upon the answer to the question:

"Do you think that the price of the same house will be the same, more, or less, next year and the year after that (and the one after that)."

Yes, it is right for you (anyone) to buy for the long term as soon as they can afford to do so, but the reason for not suggesting jumping in now is that we are still in uncertain markets and may not have reached the bottom of that market. There is still lots of bad (economic) news to come, who knows what this will do to house prices. You may buy today for 150K something that you could buy tomorrow for 120K, then again you might not.

Buying just "to get a foot on the ladder" is economically silly in such a market. And doing so because cash is only returning you 3% even siller.

Just my 2p worth.

tim

Hi Tim,

Thanks for your reply. What is the 'bad economic news to come' that you mentioned ?

tim123456789

Darojo65 wrote: »

Hi Tim,

Thanks for your reply. What is the 'bad economic news to come' that you mentioned ?

America has still to resolve the "fiscal cliff".

Despite repeated assurances the Euro problem is still not sorted.

Several more high street retailers are expected not to survive another year.

etc etc

tim

NinaSwiss

nodarkthings wrote: »

hi im thinking the same with a £100k thou im selling my house i live in to get the £100k out,which is what its made me in the 7yrs ive had it ,
then im going to live in my other house i rent out,
with the £100k im looking to buy several cheaper houses say £80k or less put £10k deposit and have a small mortgage of £70k.
then rent the houses out for £600 pm which is £7200pa morgtage would only be lets say £2000pa interest only which would mean a saving of £5000.
if the house prices drop futher and they prob will
i dont think they would drop that much,
there are also houses going for £45/50k with annual rents of £5850 so tht would be less of a risk .
£750 rent is £9000pa which is more than double what you made in interest ,if you bought would the house fall by £9000 in the 1st year? plus if you get a bargain price house then it would less of a loss ,
im no expert believe me but i know it all gets very in deph on here with all sorts of figures and percentages no offence to anyone you understand it ,
i dont im just trying to simplyfy things.
hope it helps but im just probly trying to convince myself its the thing to do, i look forward to the replies but be easy on me im only a bricklayer happy new year

Won't you need at least 25% deposit for each of the buy-to-let properties you propose?

dimbo61

The buying of several BTL properties with an Interest Only mortgage and anything less than 25% deposit ( that boat has sailed long ago)
lots of cheap rental properties on the market as many landlords have gone bankrupt!
Affordability is the key word and you need a business plan to get the funds from the lenders