Double your money in 5 years?

benood

Of course if the property falls 10% you lose your equity stake just like investing in the stock market. But as property only ever goes up you're quids in.:rolleyes:

Ian_W

EdInvestor wrote:

And of course someone else (the tenant) pays the cost of servicing the loan.

If you're lucky Ed! :eek:

This is on sale near a local hospital where you'd expect good rental potential
www.rightmove.co.uk/viewdetails-15568145.rsp?pa_n=1&tr_t=buy
90% = £105,300, which on a BTL IO mortgage @6% would mean repayments of £526.50 pcm. Based on 11 months occupancy you'd be out of pocket with the most expensive one on RM for rental:
www.rightmove.co.uk/viewdetails-15403819.rsp?pa_n=2&tr_t=rent
Even with no voids the next most expensive, and probably more realistically priced for the area, would see you several £100 out of pocket over the year - just on the mortgage repayments.
www.rightmove.co.uk/viewdetails-8140578.rsp?pa_n=3&tr_t=rent

Then of course you've all the associated costs like agents fees, gas certs, repairs, insurance and on the capital side [where you'd be looking to double your money] there are significant buying and selling costs to cover and CGT etc before you turn a profit.

Now I realise you don't consider costs important when it come to investments but in many areas BTL purchasing doesn't make much sense at the mo unless you're really looking very long term and are prepared to subsidise the tenant at least for the foreseeable future.

dunstonh

but in many areas BTL purchasing doesn't make much sense at the mo unless you're really looking very long term and are prepared to subsidise the tenant at least for the foreseeable future.

or a builder or someone who can do enough DIY to turn a cheaper, low quality property into something a bit more desirable at low cost.

EdInvestor

The query on this thread was how to double your money in five years.

There are still plenty of properties around which will yield enough to cover costs, though not these days with much of an extra margin.

But the target is very undemanding.To get 100% return on capital invested, you only require the property market to rise by 2% a year.

benood

If it's your own home then you have ppr relief as well so will avoid CGT at your marginal rate.