Buy to let purchase options

AdrianC

Brummy93 wrote: »

Certainly, there is the long term investment side of it in that I'm in it for capital gain/inflation.

Then you're either psychic or fooling yourself.

Base your business model on the yield. That's the bit you can predict and affect.

Any long-term capital growth above inflation is a nice-to-have, but if you're leveraging the purchase, it'll probably be outstripped by the interest on the finance anyway.

bris

It's madness to buy to let in this uncertain time.


As posy 2 my BTL's are only just back to 2008 prices. The upside for me was the banks were throwing cheap money at me to buy them in the first place so I can afford to keep them going.


I also have a couple of ltd companies that I believe is where I would put any future purchases not there will be any but if I was to buy now it would be in a ltd co.


Can you even still get interest only? That's what caused the problems in the first place and I thought they were withdrawn from the market, although I haven't looked for a very long time.

Alias_Omega

We have a £65k BTL, its rented to a LHA tenant for £420 a month (£5040 a year). The mortgage is £267 (£35k) and interest as part of this is £1500 a month.



We pay 12% to the agent, for this they manage everything. Recent repairs have mainly been to light fittings, boiler etc. Annually, we make less than £2000 therefore no need to complete the tax return.


Overall...we break even each year....


We pay the mortgage ourselves, then save what the tenant pays....



We look at it as such, "Every 17 years, it gives us £40k"