BTL, could we do it?

Melissa177

sortofok wrote: »

Originally Posted by ds1980
In 17 years that flat will be worth far more tahn whatever you'd have paid for it.

Not necassarily. I bought a flat in 1987 for 26k. I am currently in the process of selling it for..... 32k

Thats pathetic im not buying in the doldrums so thats irrelevant.

This flat wasn't in the doldrums at the time. It was a swanky new build "apartment". The modern equivalents are selling for £110,000 around here at the moment.

So what do you think has gone wrong ds or mr.b? Plese give me the benefit of your wisdom and experience.

I don't believe you!

sortofok

Melissa177 wrote: »

I don't believe you!

Why don't you believe me Melissa ?

Melissa177

I don't believe you can buy a flat in the Cardiff area for 32K, that was bought for 26K 20 years ago!

Unless it was built on top of a mine shaft or something.

mr.broderick

Ive no idea why you would lie about this but you are doing, post me a link to this property.

sortofok

Wales is not full of mines you know.

it's got its bad points as well.

btloptingout

Melissa177 wrote: »

I don't believe you can buy a flat in the Cardiff area for 32K, that was bought for 26K 20 years ago!

Unless it was built on top of a mine shaft or something.

I must admit it does sound unlikely in these days of paying £250k for a shoebox.

Doesn't necessarily make Sortofok a liar though........but I would award him the MSE prize for worst property investor ever.

:money:

sortofok

mr.broderick wrote: »

Ive no idea why you would lie about this but you are doing, post me a link to this property.

Why would I lie. I'm not looking for buyers. The sale is going through.
I've made a lot of money in rent over the years and I own the flat outright.

I just want it off my hands. Simple as that.

mr.broderick

Im just wondering if you would invent a phantom sale just to cement your point about houses not always making brewsters..If you have made this up..we're going to have to watch you a little closer...

A_Fool_&_His_Borrowed_Mon

catwoman wrote: »

Am I being naive in thinking the rent will pay the mortgage repayments?

You need to make sure that the yield (ratio of rental income versus mortgage amount) exceeds the Interest + repayment costs by a decent margin.

Otherwise you'll be subsidizing & as you have limited funds elsewhere, very risky if you're caught short.

grey_lady

Time for a time out people :-)

Im posting a reply because in not one single earlier reply has anybody mentioned income tax. If you rent a property out, you are liable for income tax - HMRC has far-reaching powers and a very very long memory.
So - if you rent a property out, you can deduct the IO repayments but not any more, you can probably deduct so more for expenses or upkeep of a place, but it's something that requires investigation.

Property (if you get the right deal) is probably still a good investment - although historically not any better than stocks/shares and with a good deal more responsibility if your a landlord. But get advice and then decide, because so far all the replies to this thread have been half arsed rumours.
MSE is a good site - but possibly not the same as getting professional advice, and no FA is psychic, (there are some nice but questionable FA's)
think about ways that you can minimise the risks.

hth

l