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

plane_boy2000

Looks like an Ok investment to me. SHort term you will not gain much as I think growth in the market is limited, but the reality is that we are still not building enough new houses in the UK so teh market will be driven by demand. Also if there is a recession and all the BTL landlords bail out then rents will rise as there will be a similar supply / demand problem like there is in house purchases.

If your view is to sit in there for 20 years and clear the mortgage then fair play and I hope it works out well for you as over that time frame the market will offer a return to you and as your mortgage decreases your rent will increase so it may be tough to start with, but will get easier.

jamesd

Going with the BTL route is fine for your long term purpose, even if there is a drop for a few years. Do keep the borrowing high on the BTL, since the interest on that reduces the taxable profit. Better to accumulate other investments than pay off the BTL mortgage.

cells

why not buy 10 BTL properties.


if one makes money, then surely 10 will make 10 times the money


and running 10 is not 10x as hard as running 1 ect

Rover

voucherqueen wrote: »

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.

My honest opinion, like others, steer away from BTL at the moment.
Considered opinion is that house prices have peaked. We are likely to see a correction over the near future.
In the mean time invest your capital conservatively and wait for the market to become more transparent.
Reconsider your BTL idea when the market (housing) has bottomed - NOT when 9 out of ten 10 money savvy people are advising caution.

Former_MSE_Forum_Manager

I have had to remove some posts on this and other threads, specifically from certain posters which have become personal and abusive.

Let me be clear. We do not mind people disagreeing and we encourage constructive discussion. We do not allow personal comments. There is simply no need for it and if people are unable to discuss in a sensible manner, they will simply have their ability to post on these forums revoked.

Please can we take a step back and post in a civil manner.

mr.broderick

MSE_Forum_Manager wrote: »

I have had to remove some posts on this and other threads, specifically from certain posters which have become personal and abusive.

Let me be clear. We do not mind people disagreeing and we encourage constructive discussion. We do not allow personal comments. There is simply no need for it and if people are unable to discuss in a sensible manner, they will simply have their ability to post on these forums revoked.

Please can we take a step back and post in a civil manner.

Heavens. maybe sortofok was right..big brother is watching...

sortofok

I told you. You wouldn't listen.

While your here baldrick, I do hope you have had a chance to catch up on my posts from earlier you learn some other stuff as well.

They are after all intended for people like you.