Buy To Let - would you pay £150K for a £625 BTL ?

wecanhelpu

Helonearth wrote: »

I know where all the people who say "Don't Do It" are coming from, but personally, as long as you can afford to cover the mortgage even if you don't have a tenant, I would say do it as a long term investment.

I don't think of it as me subsidising a tenant, I think of it as them subsidising my pension! If the repayment is £500 on the mortgage, and the rental income is £400, even saving £200 for wear and tear, voids etc, there is still £200 a month going towards my pension investment!

Sooner or later the property market will slow up and speed up and slow up again, but I would have 25 years to ride it out. I doubt the property would still be worth x amount in 25 years time!

Oh god!

I can't be bothered to answer

Doozergirl

For how long is the mortgage guaranteed to be £400? What if you already have a mortgage on another house? What if the interest rates increase on both those mortgages? How long could you afford to pay two mortgages? What if the property is left entirely empty for a long time between tenants?

ie. what if you simply can't afford to keep it?

Unless you own something, it isn't an asset, it's a liability.

Why buy a BTL when property is expensive? If property prices do dip, why not speculate when they are cheaper and you don't have to subsidise the rent?

ManAtHome

And your £200 a month towards the "pension" will appreciate faster than the £600 a month (or more if a higher-rate taxpayer) you could put into a real pension fund..?

wecanhelpu

BTL - investments for people who know nothing about investments

pickles110564

ManAtHome wrote: »

And your £200 a month towards the "pension" will appreciate faster than the £600 a month (or more if a higher-rate taxpayer) you could put into a real pension fund..?

You mean a real one like the employees of maxwell?

pickles110564

wecanhelpu wrote: »

BTL - investments for people who know nothing about investments

How many properties do you own?

Generali

Helonearth wrote: »

I know where all the people who say "Don't Do It" are coming from, but personally, as long as you can afford to cover the mortgage even if you don't have a tenant, I would say do it as a long term investment.

I don't think of it as me subsidising a tenant, I think of it as them subsidising my pension! If the repayment is £500 on the mortgage, and the rental income is £400, even saving £200 for wear and tear, voids etc, there is still £200 a month going towards my pension investment!

I have 3 questions, just out of interest:

- What deposit did you put down on the BTL place?
- Will the £200 for wear and tear, voids etc cover the irregular big stuff like a new kitchen/bathroom/roof etc.
- Are you on an interest only or repayment mortgage?

I'm interested in peoples' rationale for getting into BTL right now as it doesn't really make sense to me.

pickles110564

ManAtHome wrote: »

And your £200 a month towards the "pension" will appreciate faster than the £600 a month (or more if a higher-rate taxpayer) you could put into a real pension fund..?

When I retire in 20 years time how much would I have had to pay into a pension fund to bring in £2200 per month ( that's with rents staying at current level) ?

wecanhelpu

pickles110564 wrote: »

How many properties do you own?

3

Why do you want to know?

pickles110564

wecanhelpu wrote: »

BTL - investments for people who know nothing about investments

This remark, sorry if I have missed the point