Is a Buy to Let worth it in the current political/economic climate?

Sarah1Mitty2

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

So the big problems are that the prices have gone up and that the prices have gone down?

Hmmmm.

No, borrowing costs have gone up and sales volumes have gone down, meaning it is far harder to just pop an ex-BTL flat on the market and get a buyer, and nearly impossible to get a new landlord buyer because all the legal changes plus falling house prices and rising debt costs make it a losing investment, you would be better off sticking money in a money market fund now.

These money market funds that you keep recommending appear to be considered almost the worst of all possible options by the people (including many IFAs) on the savings and investments board.

What options are you comparing them to? 

CSI_Yorkshire

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

So the big problems are that the prices have gone up and that the prices have gone down?

Hmmmm.

No, borrowing costs have gone up and sales volumes have gone down, meaning it is far harder to just pop an ex-BTL flat on the market and get a buyer, and nearly impossible to get a new landlord buyer because all the legal changes plus falling house prices and rising debt costs make it a losing investment, you would be better off sticking money in a money market fund now.

These money market funds that you keep recommending appear to be considered almost the worst of all possible options by the people (including many IFAs) on the savings and investments board.

What options are you comparing them to? 

I'm not, I've just seen them come up (and get dismissed as a bad idea) on several threads over there.

Sarah1Mitty2

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

So the big problems are that the prices have gone up and that the prices have gone down?

Hmmmm.

No, borrowing costs have gone up and sales volumes have gone down, meaning it is far harder to just pop an ex-BTL flat on the market and get a buyer, and nearly impossible to get a new landlord buyer because all the legal changes plus falling house prices and rising debt costs make it a losing investment, you would be better off sticking money in a money market fund now.

These money market funds that you keep recommending appear to be considered almost the worst of all possible options by the people (including many IFAs) on the savings and investments board.

What options are you comparing them to? 

I'm not, I've just seen them come up (and get dismissed as a bad idea) on several threads over there.

There has to be context to a "bad idea", money market funds as generally a "bad idea" doesn`t make much sense

CSI_Yorkshire

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

So the big problems are that the prices have gone up and that the prices have gone down?

Hmmmm.

No, borrowing costs have gone up and sales volumes have gone down, meaning it is far harder to just pop an ex-BTL flat on the market and get a buyer, and nearly impossible to get a new landlord buyer because all the legal changes plus falling house prices and rising debt costs make it a losing investment, you would be better off sticking money in a money market fund now.

These money market funds that you keep recommending appear to be considered almost the worst of all possible options by the people (including many IFAs) on the savings and investments board.

What options are you comparing them to? 

I'm not, I've just seen them come up (and get dismissed as a bad idea) on several threads over there.

There has to be context to a "bad idea", money market funds as generally a "bad idea" doesn`t make much sense

Not a debate I'm qualified to have - maybe you'll get a better discussion about it on that board.

Sarah1Mitty2

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

Sarah1Mitty2 said:

CSI_Yorkshire said:

So the big problems are that the prices have gone up and that the prices have gone down?

Hmmmm.

No, borrowing costs have gone up and sales volumes have gone down, meaning it is far harder to just pop an ex-BTL flat on the market and get a buyer, and nearly impossible to get a new landlord buyer because all the legal changes plus falling house prices and rising debt costs make it a losing investment, you would be better off sticking money in a money market fund now.

These money market funds that you keep recommending appear to be considered almost the worst of all possible options by the people (including many IFAs) on the savings and investments board.

What options are you comparing them to? 

I'm not, I've just seen them come up (and get dismissed as a bad idea) on several threads over there.

There has to be context to a "bad idea", money market funds as generally a "bad idea" doesn`t make much sense

Not a debate I'm qualified to have - maybe you'll get a better discussion about it on that board.

I don`t really want a discussion about it, I have decided by DMOR that a MMF suits my needs as a short term home (less than five years) for a portion of money allocated to the stock market, I also keep eventual stock market money in cash, my point was that rather than BTL the OP should be looking at a more diversified home for their 250k.

Martico

And that's probably the point - the best savings and investments vehicles depend on a range of things related to personal circumstances and aims. So to blithely recommend something that you've decided is best for you may not be the best for others, that's pretty irresponsible. Hence the advice to ask others 

Sarah1Mitty2

Martico said:

And that's probably the point - the best savings and investments vehicles depend on a range of things related to personal circumstances and aims. So to blithely recommend something that you've decided is best for you may not be the best for others, that's pretty irresponsible. Hence the advice to ask others 

It was semi-sarcastically suggested that a money market fund would throw off more return than the average BTL now (but this may be inaccurate depending on how and when you bought the BTL, the rent levels, costs etc.) My only recommendation was to not throw 250k into property at this point.

[Deleted User]

There are currently very limited circumstances where I would consider it to be a good investment. You need to find the best yield, potential for house price growth, mortgage free and not in high tax bracket. Reality is that currently, the best ISAs will give BTL a run for their money, without the hassle.

sevenhills

You could buy a house and get a lodger to cover part of your mortgage.

consciousobservation

Surely BTL landlords will just put the rent up before being forced to sell at a loss/low price?