buying up north?

MisterB1959

prosaver wrote: »

You can get 5 per cent a year ..plus no risk ... and sit back

Fact (because its exactly what we have done)


- 88k property
- 22k deposit = 66k mortgage
- £240 per month mortgage payment
- £650 per month rent


- £410 per month = £4920 per year on a £22k investment


wife has 'retired', so no tax due (though tax is due accumatively on the properties we own)


22% return on investment (overall is around 17% on all investment after tax allowances and payments)


total capital investment under £70k - monies owed £330k (true) asset value £460k - which may go up or down !
two of the four rental properties we now own were bought for cash, completely renovated then remortgaged, which released the full cost of the properties PLUS most of the money spent on renovations, so the capital investment in those is around 10% of the value.




you make your own choice/decision as to whether its worth it when you do your own sums, for us it is and its not just the income, its the ability for my wife to 'retire' at 52 and still receive an income ( we have four properties each producing similar returns), quality of life is just as important for us. its taken us almost four years of hard work, renovating etc, but from now on she doesn't have to work any more!

prosaver

peter1000 wrote: »

love to know where your getting 5% on your savings??

Heres one
http://www.fairinvestment.co.uk/income_investments.aspx?cmpid=97
Ps usually house prices double after 10 years but now I think people wages are not keeping up... just my thoughts
maybe we should ask everyone if they had 70k , what would you do....
I would sell my house...buy a old house in a auction live in it and do it up ....sell afer a few years and then do it again with the money I made. Repeat till I get bored

peter1000

With regards my question on buying up north and my idea of st helens as a example,I have been looking at the the sold prices on zoopla at half a dozen properties,houses and flats,the biggest drop was a flat{not very old)it sold in 2007 for £124k now up for 50k a massive 74k drop!!! why??? ALARM BELLS any thoughts??

Bluebirdman_of_Alcathays

That's it, I'm out. MSE has descended into a bunch of stupid people talking to one another.

Right, I'm off to buy a house in Barrow-In-Furness (I live in Bristol, obviously)

mik82

Why do you want to take the money out of ISAs? There's no capital gains tax and the tax on dividends is 10%.

poipo

why do you think you need an expensive house to make $?
we just bought a house for 34k Cash, spent another 2k on improving it and could easily rent it out for 450/month.