What to do with £30k..buy to let or savings??

dunstonh

As a landlord myself the sheer scale of the "misselling" in the buy to let market is huge

Don't you mean mis-buying? mis-selling suggests they were advised incorrectly but buy to letters are not taking advice but acting on their own.

PauliPauli

that's a difficult one Dunston, I think depends on the person buying...

In case of someone being "persuaded" by someone who is cleverer and adept at selling who is primarily motivated by commission whilst withholding the full statistics then I suppose its mis-selling

In case of someone who is "lazily/deliberately hearing what they want to hear" by someone who is cleverer and adept at selling who is primarily motivated by commission whilst withholding the full statistics then I suppose its mis-buying

Then of course there's the grey area between the two where most fit

As for the "fully persuaded" ....

http://news.bbc.co.uk/1/hi/business/7010415.stm

dunstonh

As for the "fully persuaded" ....

http://news.bbc.co.uk/1/hi/business/7010415.stm

Yes. Those cases were mis-sold. However, none of the consumers there involved said no did they. They didnt say no to telling a lie. They were told the costs and knew the repayments. So, whilst they were mis-sold, there can be no doubt that they knew what they were doing and the costs involved. They wanted the mortgage and they found someone to facilitate that. Two wrongs dont make a right but in this particular case I have no sympathy for those involved as they were in it as much as the mortgage brokers.

In case of someone being "persuaded" by someone who is cleverer and adept at selling who is primarily motivated by commission whilst withholding the full statistics then I suppose its mis-selling

And who would that be in the process of buying a house to let out?

PauliPauli

I dont want to give impression I'm "against" the industry and "for" the buyers full stop, agreed it takes two to tango, just that the industry should take more of the flack since they are the ones "in the now", its their "trade" def another case of where self regulation does not work

the "persuaded" are the ones who should have known better, the buy to letters in the "level 2's and above" ...

http://www.literacytrust.org.uk/database/stats/adultstats.html

PS From site: "Nearly four out of 10 adults in some parts of England cannot read or write properly or do simple sums according to a Basic Skills Agency's report in May 2000." - no wonder advertisers and politicians are so successfull in their "art"

PM

PauliPauli wrote: »

agreed ... but it in a high interest 1 year bond before rates go down) so that your not tempted to take it out and buy, buy-to-let 6 months from now, as your purchasing power will be even greater in 12 months

As a landlord myself the sheer scale of the "misselling" in the buy to let market is huge and will come home to roost soon, my two properties left have less then 50% LTV..... it was hard to fight the urge to buy anything in last 18 months !!

which bonds? Im in similar position have deposit saved to buy first property but waiting at least till next year due to current climate might hold of longer but what to do in mean time.

Gorgeous_George

daisycat01 wrote: »

We are hopefully selling our house to our tenants and once we have paid off the morgage and cleared our CC we will have approx £30-£40K left over.

Drifting slightly off-topic, have you set aside anything for CGT?

Generally, I think now is not a good time to buy a BTL. Even worse, a home of your own. There will undoubtedly be exceptions to this rule but the potential for disaster far outweighs any optimism.

GG

dunstonh

I personally work on the basis that you live in your home and you always will (whether it is the current one or another) and therefore your primary residence shouldnt be considered an investment.

Primrose

I personally wouldn't opt for a buy-to-let investment at the moment. I think the longer term implications of the credit crunch have yet to unravel and you could end up with a property which drops in value or moves into negative equity. I would guess that in the 2 - 3 years you are hoping to buy a bigger house, inflation will not have rocketed, and if you find the property you want earlier than that, you may well need your £30K savings in a liquid form. I'd put the full allowance in Cash ISAs for both of you each tax year until it's needed and put the remainder in a high interest account, or possible in the best One Year Building Society Bonds you can find. And you will save yourself all the stress you've recently been suffering.

getoblast

Well... I would have been watching the other thread on NR and bought 18,520 shares and made £3,706 in one afternoon!

Aegis

getoblast wrote: »

Well... I would have been watching the other thread on NR and bought 18,520 shares and made £3,706 in one afternoon!

Speculation isn't always a good idea. In fact, I'd say that it's the wrong strategy for most people.

If you made money out of it, great, but I have seen plenty of people lose a lot of money speculating on Northern Rock this week.