Buy to let is for amateurs

Glen_Clark

lush_walrus wrote: »

People throughout every decade have thought that. That is the difference between those who do and those who don't. The biggest skill you need to do anything is the ability to take a risk and to think for yourself. No one on here or anywhere else is actually going to tell you a dead cert - if they have spotted it they will be doing it.

Fact is it never actually gets easier or harder you just need to check X covers Y and do it. Sure if you are buying with an idea of selling next year then one year will be better than another. Sure buying in the north may mean you won't be able to sell easy and may loose money. But if you want to buy to let you can and make money now. Areas regenerate buy there. Things change in an area, more jobs appear or something putting people off living in an area is removed (Didcot Power Station was an obvious place to invest in change when announced its closure).

I set my business up in property during a recession while I was still a student. Can you imagine the response most people had to my idea? I took the risk anyway and now years on people now assign oh it was easy back then to borrow money, things were cheap etc etc to that achievement.

You can keep telling yourself how clever you are if it makes you feel better. But the reality is its easy to make money in a rising market.
Property prices have risen because of Government Intervention in the housing market - restricting supply and fuelling demand with taxpayers money.

BananaRepublic

MatthewAinsworth wrote: »

Banana - radicalism is gaining popularity, with brexit, trump, corbyns original success. People are going against the establishment

I wouldn't call Brexit radical, just a symptom that people are tired of being told what to do by self important politicians. That is the reason for Trump's success. But Corbyn is not popular in the country as a whole, only with a small core of moderate and hard Left activists, those who became members of the party. It isn't newspapers that are waging war against Corbyn, it is the fact that he does not appeal to the average person.

Glen_Clark

BananaRepublic wrote: »

I wouldn't call Brexit radical, just a symptom that people are tired of being told what to do by self important politicians. .

I find it quite remarkable that self important politicians were able to convince voters they wanted to take power from Brussels and give it to the people instead of themselves.

adindas

Just my though, please criticize it
What I am thinking is that, with buy to let you are just using about 10%-40% of your own money and 60-90% comes from the bank.

How long will you need to raise capital to get the amount of capital similar to those you will get from from mortgage ??? Not many banks (if any) want to lend people money of that size of mortgage without security. With the help of the bank through mortgage you are playing a bigger game, with very low interest rate ...

After a few years, your rent will be enough to cover your mortgage and you will see your assets is increasing day by day. Of course you will need to get the property at the right price at the right time to prevent negative equity ...

Another point is that a cash buyer could buy the property at incredibly low price in the auction. It is hard to believe if in general, the foreign buyers who bought properties across London at cheap price are amateurs investors.

MatthewAinsworth wrote: »

New investors sometimes feel more confident in property than shares due to the tangibility of what they're buying and the demand underpinning it, and the ability to insure against the worst destruction, and the belief that shares are riskier and that buying 1 unit of property buys them 1x nice added income

But compared to stock market investors they are missing out on-

-Isa /sipp tax advantages
-Much easier and vaster diversification of risks, making shares safer overall in my opinion
-The ability to trade easily without so much fees (although that lack of freedom forces them to follow a better buy&hold strategy that they should follow with shares)
- the better performance of the stock market against enen leveraged property
- shares are already leveraged as the companies are in debt, without exposing you to a mortgage, but you could leverage yourself if you wanted to
- evicting people is an awkward thing to do

qwert_yuiop

BananaRepublic wrote: »

I wouldn't call Brexit radical.

I'd call Brexit very radical indeed.

System

Banana - to be honest I know very little about corbyn or his policies, but before he was even selected there was so much noise about how unelectable he is, to me that sounds like an assumption that the public's historic voting for Tories and anti immigration makes them right wing (an assumption) and that they would be ideologically against any radical left policies. I don't agree with his Falklands or trident stance but I don't call those left wing things, I do agree with his view of extending right to buy to private tenants and I prefer his EU stance over that of Owen's

I have voted labour before but I'd go ukip to push through hard brexit

bigadaj

Glen_Clark wrote: »

I find it quite remarkable that self important politicians were able to convince voters they wanted to take power from Brussels and give it to the people instead of themselves.

That's one interpretation. Another might be that the weight of politicians and others arguing for remain led to a reaction amongst much of the population to vote the other way.

Very few voted for farage, or indeed boris or others on the exit side, most voted against Cameron, the other major party leaders, big business and unions, it was a protest vote.

Glen_Clark

MatthewAinsworth wrote: »

I don't agree with his Falklands or trident stance

I don't know why Britain needs (or can afford) to spend more than any other country in Europe on its military. But I suppose it depends on how much you have got to defend. At one extreme if you are the Duke of Westminster inheriting £10bn tax free you might want taxpayers to spend £100bn+ a year to defend your untaxed inheritance. Wheras at the other extreme if you are sleeping on the streets, waking up to people p*ssing on you, setting fire to your sleeping bag, or beating you up for fun, you might think that £100bn wasn't defending you very well, and wish the Government weren't closing homeless shelters to pay for it.
(PS as for the Falklands I think the Argentine Foreign Minister put it best when he likened the Falklands war to 2 bald men fighting over a comb)

bigfreddiel

qwert_yuiop wrote: »

I'd call Brexit very radical indeed.

Actually on a global basis BREXIT is small fry

lush_walrus

MatthewAinsworth wrote: »

Lush walrus - regarding risk a lot of the same things apply to shares, in fact property and shares ate more similar than they may appear, both are underpinned by demand for products, different products admittedly but some very stable nonetheless - I.e. food, shampoo, tobacco, etc - and its just a case of diversifying properly

Sticking to a field like housing is similar to sticking with food or a company making socks, safe demand wise but not necessarily rocket fuel, good enough when all you want to do with it is buy a future property or retire, its all about being sure the risk is sensible for the goals, and I think there are too many scare stories about shares from people who don't balance properly and scare people off unnecessarily

Yes all the same applies to shares, stocks, commodities, future markets, art - all and any investments if you choose correctly you can gain in a falling market. That was my point with property regardless of the market trend it is still possible to choose a wise and growing investment.

And I agree there are too many scare stories about everything, but if you are able to think past them and take the risk for yourself then you will benefit- the scared are the ones making space for those who aren't.