But to let rather than save?

AnotherJoe

Crashy_Time wrote: »

You would get a bigger potential pay-off sticking it in premium bonds.

Nah, you'd get a better potential payoff spending just £1 or is it £2 or is it £2.50 ? on a lottery ticket.

Crashy_Time

AnotherJoe wrote: »

Nah, you'd get a better potential payoff spending just £1 or is it £2 or is it £2.50 ? on a lottery ticket.

True, but the odds are different and you don`t get the lottery money back. Basic point is that BTL for anyone not in ages ago with little mortgage exposure, or REALLY knowing what they are doing with tax avoidance is just going to be a money pit. TBH most of the people who think they will be doing this in the next couple of years are probably not going to get the loans anyway, we are in a new paradigm, the era of cheap money and taking "expert" advice from LLL are well over, and thank goodness for that.....:T

cyantist

We ended up as landlords as we were unable to sell our house when we moved. Initially the house was just a couple of miles away but then we moved to London, and had tenants who were happy there and had signed a 2 year contract so we kept it.

So now we live 200 miles away and living so far away is a nightmare.

If it’s empty don’t forget that as well as covering the mortgage you’ll need to cover full council tax costs for it as well as insurance. We desperately want to sell ours because it’s a hassle and when we have kids we won’t be able to drop everything and drive 200 miles to sort out a problem. But we will have to save thousands to enable us to comfortably cover all our costs while selling when it might be empty for several months.

When we took out our BTL mortgage, they insisted our earnings were high enough to cover our residential property, plus all costs associated with the BTL in case it wasn’t rented out. With an interest only mortgage of ~£120 I guess that won’t be a problem but it’s another thing to consider.

Overall though, I would advise don’t do it.

AnotherJoe

Crashy_Time wrote: »

True, but the odds are different and you don`t get the lottery money back. Basic point is that BTL for anyone not in ages ago with little mortgage exposure, or REALLY knowing what they are doing with tax avoidance is just going to be a money pit. TBH most of the people who think they will be doing this in the next couple of years are probably not going to get the loans anyway, we are in a new paradigm, the era of cheap money and taking "expert" advice from LLL are well over, and thank goodness for that.....:T

You most likely dont get all your PB money back either. Perhaps 75% of it in 15 years time? (inflation losses)

Crashy_Time

AnotherJoe wrote: »

You most likely dont get all your PB money back either. Perhaps 75% of it in 15 years time? (inflation losses)

The draw is monthly, and we are certainly not in inflation mode at the moment? Easy to shift your money around if inflation becomes a concern/opportunity? Inflation in goods and services without wage rises will be bad for house prices anyway, but I think the US rate rises that they seem desperate to make will be the thing that finally pushes all the deluded sellers over the edge.

Crashy_Time

So, they finally pulled the pin, wonder how high they will go, and when will the UK be forced to follow?