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Debate House Prices
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It’s over for buy-to-letters
Comments
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bulccp05laer wrote: »No better than a savings account? Really BTL is that much risk? That's a bit strong isn't it?
The return may not be worth the risk. Yet people will take the risk in a search for what they perceive to be a better return.0 -
Yes but what if what they are actually getting is return free risk?real50pcclub0
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bulccp05laer wrote: »Yes but what if what they are actually getting is return free risk?
No such thing. Rocket scientists thought that they had cracked market trading with their algorithms. Trouble was when market prices without exception turned red. There was no where to hide. There was no trade to make.0 -
When interest rates go up, the problem may or may not affect a significant number of BTL landlords. But there will also be a lot of owner occupiers who cannot afford the mortgages.Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0
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When interest rates go up, the problem may or may not affect a significant number of BTL landlords. But there will also be a lot of owner occupiers who cannot afford the mortgages.
This is true, there are many proped up by low interest rates now. The problem is the current rate has become the norm now so many won't plan past it.
I did plan past it and can currently support a base rate of around 20%.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
Thrugelmir wrote: »Of course people are over leveraged. Called human nature.
Sensible money pulled out to invest in pastures new years ago.
Other than the stock market where else can you get 48% returns in a year. Tax free too as in an ISA.
BTL? No better than a bank savings account.
In my latest example I invested about £30k in a £90k property where the rent is £9636 pa gross, and £6000 pa net after costs.
My £30k therefore nets me before tax £6000pa in rent.
I have long had equities and ISA's and in general the returns have been very uninteresting.
Bare in mind in 15 years time though the mortgage might be say 25% higher (I'm fixed 5 years at 4.39% now), the rent will be far higher than today and then there's capital growth on top.0 -
In my latest example I invested about £30k in a £90k property where the rent is £9636 pa gross, and £6000 pa net after costs.
My £30k therefore nets me before tax £6000pa in rent.
I have long had equities and ISA's and in general the returns have been very uninteresting.
Bare in mind in 15 years time though the mortgage might be say 25% higher (I'm fixed 5 years at 4.39% now), the rent will be far higher than today and then there's capital growth on top.
10% + yield suggest you picked well and is in a lucrative spot good choice.
Mortgage costs or all costs?
Up front fees, stamp duty, insurance, maintenance, replacements, safety,compliance, agent and exit fees?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
We are doing very well letting large houses (HMOs) to students down in Kent. It made good money when the base rate was 6 or 7%. The last few years have been amazing, although we know it won't last for ever, so we've been paying down the loans with some of the money. If the super low rates last another year or two, and we don't buy anywhere else, we'll have paid off that much of the borrowing that future rates won't matter that much anyway.0
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chewmylegoff wrote: »so is it over now, or do we have to wait for interest rates to rise first? when will that be?
i think we've seen the end of BTL about 50 times in the last couple of years already. i'm getting a bit sick of the end of BTL if i'm honest.
LOL, nice point.
In that @end is nigh@ period for BTL, they've only gone and expanded in the market.
Bloody fools
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Thrugelmir wrote: »European Investment Trust - one year performance 59.2%. :j
Property has lost it's crown. Cycle has moved on.
What's it's 2 year performance?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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