£400 a month to invest - should I get a BTL?

Doozergirl

misterman wrote: »

I appreciate the impending rise in interest rates but there does seem to be a lot of people round here still snapping up houses and apartments at around 1f 00 - 130k and then letting them.

So you don't think it's people like that artificially buoying up the market?

Just because lots of people are doing it doesn't mean that it's a good thing to do. It's herd mentality, pure and simple. All over the country there are thousands and thousands of apartments not even what worth what people paid for them.

I buy and sell property for a living. I would not BTL. I take my risks calculated; you can't rely on luck to carry you upwards. My first flat is worth three times what I paid for it 8 years ago. How much higher can it go?

lynzpower

I am investing 450 pcm ( about to send the paperwork off today) in a Yorkshire Building Society regular saver.

Its 7.00% pretax and 5.60 after ( as long as you continue to pay in) http://www.ybs.co.uk/savings/interest_rates/regularsaver.jsp

Im sure this isnt the best performing investment- however, it does the job I'll need it to, and it sure seems a hell of a lot less hassle than your current plan, as your figs might not stack up.

In order to determine demand put a "fake" advert on your local loot/ gumtree etc and see how much the phone rings.

If there are many others "snapping them up" are there enough tenants to go round?

Romani_Ite_Domum

pinkshoes wrote: »

Some people are speculating about a housing crash, but that doesn't necessarily mean doom and gloom.

you've finally seen the light! :T

pinkshoes wrote: »

Most house owners I know have extra cash put aside to pay their mortgage even if interest rates rise above 12%, and if houseprices drop, it just means that if they ever went to move, they'd rent their house out rather than selling, which will just mean even less properties available to FTBs.

:rotfl:

pinkshoes wrote: »

Most the negative house crash speculators are those who rent privately and are hoping they'll be able to bag themselves a 4 bed detached mansion with extensive grounds for 50p!

Nothing like a bit of bear bashing eh?

misterman

Thanks for the advice everyone. I'm going to spend some time looking at buying abroad as we considered this last year (apartment in Canaries, year round sun, low cost airlines adding routes), look at buying properties needing refurb and selling on quickly and then weigh these up against a BTL

Doozergirl

pinkshoes wrote: »

Doozergirl, where did you get the 130% figure from?!

From my IFA last year when I was looking at maybe renting aflat that I'd got at a particularly good price.

pinkshoes wrote: »

Most the negative house crash speculators are those who rent privately and are hoping they'll be able to bag themselves a 4 bed detached mansion with extensive grounds for 50p!

Right. So that's a good reason to have a BTL is it?

dancingfairy

I think property people generally allow for a property being empty for 3-4 months of the year average to make sure they can still afford to keep it. Also have you got a current mortgage on your house - if interest rates rise could you afford all the repayments necessary?

pinkshoes

Doozergirl wrote: »

Quote:
Originally Posted by pinkshoes
Most the negative house crash speculators are those who rent privately and are hoping they'll be able to bag themselves a 4 bed detached mansion with extensive grounds for 50p!

Right. So that's a good reason to have a BTL is it?

er.... no. why on earth would that be a good reason to have a BTL?!?! I personally wouldn't bother with a BTL because it's not worth the hassle, and not really a good ROI at the moment.

Quote:
Originally Posted by pinkshoes
Most the negative house crash speculators are those who rent privately and are hoping they'll be able to bag themselves a 4 bed detached mansion with extensive grounds for 50p!

Nothing like a bit of bear bashing eh?

just some good 'ole english sarcasm.

phlash

" Let's get a BTL, or do our house up a bit to add value, or we can buy abroad and do it up.....we'll make LOADSA MONEEEEYYYY!!!! There's no other way to make money is there? "

granville_2

Instead of taking on *more* debt why not build up savings?

Or, look at investing in the stock market?

BTL is something which maybe 5-10 years ago would have been a fine investment, but not now (imo).

These days it really is a lot of hard work for very little reward. You must have read other posts on this board from landlords / tenants who are having problems?

ymmv

Jonbvn

lynzpower wrote: »

Its 7.00% pretax and 5.60 after ( as long as you continue to pay in) http://www.ybs.co.uk/savings/interest_rates/regularsaver.jsp

Somewhat OT: Thanks for this link. I have been considering a regular savings account, but the low limits (generally 250pcm) together with other T&C's put me off. YBS is definitely worth considering.