Buy to let

jamels2

I never thought of it that it's just a lease. And I still have to maintain the building even though I don't really own it?

Yes they do a workplace pension I just have never been interested in the whole idea of a pension.

Pixie5740

Well the freeholder is responsible for maintaining the building but you're probably be paying for it.

As for the workplace pension, would you turn down a pay rise if offered one? Of course you wouldn't and joining your workplace pension is no different. If your employer makes a contribution to your pension when you make a contribution it's free money. My workplace pension is pretty decent, as long as I pay in at least 3% of my salary each month (I pay in more) then my employer pays in 8%. Would I turn down an 8% pay rise...not on your nelly.

Cakeguts

jamels2 wrote: »

I am just wondering really , on one side I hear people say you can't go wrong with bricks and mortar, property always rises long term etc and thst it's the only way to retire early by having rent coming in and small interest only mortgage going out.

On the other hand I am put off by the question of if it's immoral, borrowing money because I have capital then charging a tenant (who would probably love their own home) market rent to pay the mortgage and give me some profit.
Also if I am feeling risk adverse I wonder whether if interest rates go up it could all go wrong. Plus the new stamp duty charges, is the govt trying to get rid of buy to let slowly?

Is there anything else to invest in and make money or is it best to live a simple life and pay your house off then work less when you only have a few bills to pay ?

It isn't immoral it is just like any other service. Not everyone wants to own a home. Some people prefer to spend their money on other things rather than tying it up in somewhere to live.

Miss_Samantha

jamels2 wrote: »

On the other hand I am put off by the question of if it's immoral, borrowing money because I have capital then charging a tenant (who would probably love their own home) market rent to pay the mortgage and give me some profit.
Also if I am feeling risk adverse I wonder whether if interest rates go up it could all go wrong. Plus the new stamp duty charges, is the govt trying to get rid of buy to let slowly?

Hmm, you do not sound suited to start and run a business.

jamels2

The leasehold has no service charges. But the leaseholders are responsible for the upkeep of the building, upstairs for the roof and downstairs for the foundations. Does that sound like a normal arrangement?