Buy To let mortgage help please!

phlash

Jump in.....and you'll be another one jumping ship who I could barter with for a bargain. Lovely. I'm fed up with advising people about BTL now, I'm just going to support them into their brilliant and original idea. Wonder how they came up with it?

NB: No offence to you, but theres plenty of discussions about BTL on subsequent pages. Do a bit of research about the subject, and if you come up with a winning formula you'll be extremely lucky. At this point in time and months to come, its going to be very hard to make the sums work.

Generali

TDA10. If want to get into BTL, my advice is to look at is as a business rather than an investment. Don't look at yield - it's too simplistic (although may be a way to identify places to reasearch).

Look at cashflow:

Add up all your costs and be realistic (interest, insurance, bills, repairs, redecoration).

Add up your potential income (rental making sure you knock off a month or 2 for voids)

Then stress test your assumptions. E.g. What happens if I don't get a tenant for 6 months. Or interest rates go up to 10%. Or house prices halve. Look at various worst case scenarios and see what happens to your business.

My suspision is that the numbers will show that you'll be making a loss rather than a profit in which case don't do it.

I don't think there are many places that will show a profit. Converting a run down house into HMOs might work. A lot of hassle and risk but might pay off. I don't know as I've not done the sums.

Good luck. Don't get stung.

granville_2

go for it! house prices only go up.

if you're having trouble getting a BTL mortgage i believe there are web sites where you can obtain payslips as well.

Rover

phlash wrote: »

Jump in.....and you'll be another one jumping ship who I could barter with for a bargain. Lovely. I'm fed up with advising people about BTL now, I'm just going to support them into their brilliant and original idea. Wonder how they came up with it?

NB: No offence to you, but theres plenty of discussions about BTL on subsequent pages. Do a bit of research about the subject, and if you come up with a winning formula you'll be extremely lucky. At this point in time and months to come, its going to be very hard to make the sums work.

Wholeheartedly agree with the above poster.

thesaint

TDA10,
Remember what I said at the beginning of the thread.

It's all about sums, nothing more, nothing less.

Beware of those who advise on an investment without knowing the figures involved. It is increasingly hard to find property that makes it worthwhile, but if you can, then go for it.

Don't be a slave to "The Man" you can shape your own future.

lypsey

http://money.uk.msn.com/investing/articles/nicklouth/article.aspx?cp-documentid=5120518

Very , very bad time to get into BTL , in fact suicidal is the word i'm thinking of. Enjoy the read

hearts

Generali wrote: »

Because you measure yield against current value, not price paid.

Surley you measure yield by cost/income? I thought yield was the difference between what you pay out and what you bring in?

If its as you say then a falling yield must be a good thing cos it means you are making a capital gain.
On the other hand if the price of your house falls in value then by your reckoning your yield increases so is then better ;-)

btloptingout

hearts wrote: »

Surley you measure yield by cost/income? I thought yield was the difference between what you pay out and what you bring in?

If its as you say then a falling yield must be a good thing cos it means you are making a capital gain.
On the other hand if the price of your house falls in value then by your reckoning your yield increases so is then better ;-)

Check this out:
http://en.wikipedia.org/wiki/Yield

Wikipedia is great....I also though this appropriate on reading your post.
http://en.wikipedia.org/wiki/Terry_Fuckwitt

PropertyGuru

You sound like the kind of chap who might be interested in (ahem) 'alternative' investments.

I have a bridge across the Thames I need to sell pronto - you could put toll gates on it and make a mint, or maybe dismantle it and move it to wakefield (or wherever you are from) and turn it into a tourist attraction. Guaranteed long term residual no-effort moulah generator. I swear.

I also have a freind (from the former Soviet Republic) who actually owns his own submarine. He also has connections in the (ahem) 'pharmaceutical industry', and they are always looking for clear thinkers like yourself who would like some large ez cash fast.

PM me and I'll put you in touch. Or make an offer on the bridge. It's near Tower Hill, and goes up and down to let the ships in.

:-) :-)

diesel9181

WOW you really are an optomistic and helpful bunch! why if someone asks a reasonable question do you take the !!!!?