Buy to let for 2 years worth it?

tom9980

Mortgage lenders don't like lending for you to then btl to family.

theronkinator

Pixie5740 wrote: »

Letting property can be worth it long term but there are better, less hassle investments out there as with letting property it's not only an investment but also a business not to mention someone else's home that you are responsible for. The best BTL returns might not be made in the type of property or area your sister wants to live in.

I'm assuming that as you earn £1,500 net and are able to save £1,000 a month you are still living at home with your parents. If you did decided to do BTL as a long term investment how would that fit in with your plans to eventually fly the nest. Would your parents be happy to continue subsidising you (from your figures it seems you pay next to nothing in dig money) whilst your profit from letting to your sister?

It seems like it might not be worth it based on this thread. Plan wise I want to move out in around 2 years, I need a bit more monthly take home before I can afford a higher mortgage. My take home is unfortunately lower than you'd expect based on my salary as I pay £150 student loan and travel pass and just over £200 into my pension directly from my wage.


You're right I don't pay a huge amount to live at home at £150 (+ probably about £50 worth of shopping I pick up through the month, which is about half what we spend). But we came up with that figure as if it was much more I'd probably just rather move out for the extra freedom (I've rented in the past so am aware that it costs a fair bit more than £150 before anyone corrects me).


I'd not be looking to profit from the rent, just cover the mortgage and other costs, with the actual house as the means for profit long term. They're reasonably encouraging regarding this (if I was to research it properly, such as this thread), as they think it's a way for independence long term (as the retirement age is ever increasing). Also my sister is needing somewhere else soon as her current landlord is repeatedly giving themselves access and snooping (I know this is illegal, but she doesn't want to escalate this due to fear of been evicted).

HappyMJ

If you're not going to profit from the rent then what's the point.

You would be gambling on house price inflation and that is not guaranteed at all. The property I am living in has dropped in value by £20,000 over 10 years. Could you handle that?

theronkinator

Seems like it's not worth the effort then, I'll give it a miss. Thanks for the replies.