Buy to let.......or not

cee2

Purchased our new house for £242500, mortgage of £180000. Tempted by the idea of renting out our current house on a buy to let mortgage. Had a btl mortgage aip for £136000 (80%). By the time we pay the btl mortgage, letting agents fee and insurances we are going to be approx £250 per month short, not too great a problem but we would also have to borrow an extra £10000 towards the new house at approx £250 per month over 5 years. Could this be considered a worthwhile long term investment or are we being daft. BTW our current house is worth £160000, we have an offer on our house for £8000 below value, we would of course keep that if we rented it out.......potentially.
Thanks in advance for any advice

Gorgeous_George

BTL Property
Value £152K
BTL income £250 per month short of costs

Why would you even consider BTL?



GG

Doozergirl

BTL or Not?

not.

[Deleted User]

u can do what you want and you have yourself to blame

happy hunting.

epz_2

if someone sugested you borrow 138K to invest in shares that were likely to remain at their current price at best, may fall by 30% or more, would cost you at least £250 a month to own and thousands to sell plus requiring several months to do so would you buy them.

you might be able to handle the £250 shortfall but what happens if you get a 3 month void cause someone decides to stop paying the rent, waits till you evict them through the courts to get a council house and trashes your place.

[Deleted User]

Id sell them short

CB1979_2

so £250 a month to subsidise and an extra £250 in extra loan repayments for the next 5 years???

if it were me I'd rather have the £30k in my bank (£500 x 60 months) rather than paying someone £500 a month to live in my place...crazy.

as has been said have you thought of all the extra costs?
insurance, repairs, voids, etc etc

imo unless you're filthy rich and don't give a fook about your "investment" don't do it! lol

but good luck

poppy10_2

Why don't you invest in my new scheme instead?

You borrow £136,000 and give it to me. Also give me another £250 every month for the next 25 years. At the end of the 25 years I may or may not give you the full £136,000 back,

Deal?

pcwilkins

cee2 wrote: »

Could this be considered a worthwhile long term investment

No.

or are we being daft.

Yes.

Exactly where do you make the profit out of this "investment"?

Peter

Running_Horse

Buy buy buy. Prices will rise by 10% a year forever. You can't lose.

Which muppet are you?

cee2

Thanks for all the replies. You have all confirmed what deep down I was thinking. Sometimes its easy to only see the 'potential' good points of a deal