We have £23K equity - would we still be made to buy a buy to let property?

voucherqueen_3

That is precisely the reason why we are thinking of buying of another property - after 20 years our children will be late 20's/early 30's and it could be theirs.

But that is why I posted - is too risky at the moment to put money into BTL? Or would be be better looking at ISA investments. We also have to think of pensions, which we have been paying into for 10 years.

We pay £350 a month into Fidelity ISAs and I just leave it to the financial advisor to sort this out. I think the returns are quite good for this.

We also pay £350 a month into pensions (although mine is partly funded through work).

Maybe I am expecting too much from ISAs and pensions. It seems we are paying are lot in each month for what does not look like great returns.

The pensions are only forecast at £5K each a year although we have another 20/25 years to go before retirement.

JHB205

As you already own a property/home and are reaping the rewards of its growth and freedomof owning your own home I would personally aviod putting all my eggs in one basket. I think you have a lot more to loose than you stand to gain by purchasing another property. It sounds like your in a good secure financial situation and have time to spend with your kids as oppose to worrying about the problems that BTL can bring not to mention the strong divide in the future of the property market. I feel that regular savings can be a relitivly stress free way of beating inflation.

hostertlady

save a bit, spend a lot now while you are fit and able to enjoy life>> do not wait for your life to begin when you retire- see all the places you want to see, eat the cakes, and enjoy life........xx

mr.broderick

People are being misinformed on this forum at the moment.
We have idiots everyday influencing massive decisions that they are unqualified to do.
This scenario will not happen -
House price crash or interest rates rocket..Suddenly houses will become affordable and all the ftbuyers will be happy and we'll all live happily ever after.

This scenario will happen -

House price crash or interest rates rocket ..Families would lose their homes, leading to a drop in spending on the high street, in turn triggering a surge in unemployment and a potential banking crisis.

Be careful what you wish for.

Romani_Ite_Domum

mr.broderick wrote: »

People are being misinformed on this forum at the moment.
We have idiots everyday influencing massive decisions that they are unqualified to do.
This scenario will not happen -
House price crash or interest rates rocket..Suddenly houses will become affordable and all the ftbuyers will be happy and we'll all live happily ever after.

This scenario will happen -

House price crash or interest rates rocket ..Families would lose their homes, leading to a drop in spending on the high street, in turn triggering a surge in unemployment and a potential banking crisis.

Be careful what you wish for.

I would agree. You have given 2 scenarios. Both would agree that it is not a good time to invest in property right now.

To stop a crash and stop the country going into a recession, the goveremnt should lower interest rates and the media should spin that property is a good investment again. This will keep the bubble inflating which would be good for the short term but cause a bigger recession futher down the line.

Oh wait... that's what they did in 2005 :rolleyes:

Romani_Ite_Domum

mr.broderick wrote: »

People are being misinformed on this forum at the moment.
We have idiots everyday influencing massive decisions that they are unqualified to do.
This scenario will not happen -
House price crash or interest rates rocket..Suddenly houses will become affordable and all the ftbuyers will be happy and we'll all live happily ever after.

This scenario will happen -

House price crash or interest rates rocket ..Families would lose their homes, leading to a drop in spending on the high street, in turn triggering a surge in unemployment and a potential banking crisis.

Be careful what you wish for.

I would agree. You have given 2 scenarios. Both concur that it is not a good time to invest in property right now.

To stop a crash and stop the country going into a recession, the government should lower interest rates and the media should spin that property is a good
investment again. This will keep the bubble inflating which would be good for the short term but cause a bigger recession further down the line.

Oh wait... that's what they did in 2005 :rolleyes:

mr.broderick

Sorry i thought property was a good long term investment..LONG TERM..

sm9ai

voucherqueen wrote: »

We have £230K equity in our property with a £15K repayment mortgage (we have been paying £5K a year off for last 3 years) which should be clear in next couple of years.

We only have around £15K cash, some of it tied up and some money in long term ISAs (can't imagine it's more than £10K)

Would we be in a good position to buy another property as a retirment investment. Was thinking of one for say £130K - my husband thinks we should release £50K from our property and have an 80K buy to let mortgage - I think the rent would only cover the £80K BTL - say £550 a month on a terraced property.

Essentially what you are saying is you wish to secure £130k against your own house.

So would you mew your house for £130k and invest it all in the ftse?

If yes, then go for it.

If no, then stay well clear.

sortofok

Romani_Ite_Domum wrote: »

I
To stop a crash and stop the country going into a recession, the government should lower interest rates and the media should spin that property is a good
investment again. This will keep the bubble inflating which would be good for the short term :

:T

What a sensible young man you are

poppy10_2

voucherqueen wrote: »

We only have around £15K cash.

Would we be in a good position to buy another property as a retirment investment. Was thinking of one for say £130K - my husband thinks we should release £50K from our property and have an 80K buy to let mortgage - I think the rent would only cover the £80K BTL - say £550 a month on a terraced property.

Go for it! In fact, why don't you MEW £150k from your current property and use that to buy four more houses at £130k each! Then you can be in debt to the tune of almost half a million and still not own your own home. Great retirement planning!