Is buying property still a good investment?

N6xxy

Thank you all! Food for thought.

Brie

I wondered about the idea of getting equity release when you still have a mortgage.  A quick google came up with this:  The tax-free cash can be spent on anything you wish, but you must first use this to repay in full any existing standard mortgage currently on your property.

So on that basis and the fact that this particular company would only allow release of up to 50% of the value you are looking at getting £250k and you'll have to deduct £158k which leaves you with only £92k.  So you'll need to get a BTL mortgage for another £158k at a minimum to buy a £250k place.  So why not wait until the market calms down a bit (assuming it does) and meanwhile chuck all your pennies at the current mortgage.  Once that's done you will know that any money you get from ER will be available and you might be able to get a BTL essentially for free.  

Not that I'm recommending getting a BTL.  I don't know why anyone would want to be a LL.  

MEM62

Mr.Generous said:

Buy-to-let mortgage only covers the interest, you can overpay by up to 10% of original loan value but most don't. 

Only if that is what you choose to take out.  You can take a BTL repayment mortgage if you wish to.  Most don't because the income from the property does not cover the cost.  

ReadySteadyPop

Brie said:

I wondered about the idea of getting equity release when you still have a mortgage.  A quick google came up with this:  The tax-free cash can be spent on anything you wish, but you must first use this to repay in full any existing standard mortgage currently on your property.

So on that basis and the fact that this particular company would only allow release of up to 50% of the value you are looking at getting £250k and you'll have to deduct £158k which leaves you with only £92k.  So you'll need to get a BTL mortgage for another £158k at a minimum to buy a £250k place.  So why not wait until the market calms down a bit (assuming it does) and meanwhile chuck all your pennies at the current mortgage.  Once that's done you will know that any money you get from ER will be available and you might be able to get a BTL essentially for free.  

Not that I'm recommending getting a BTL.  I don't know why anyone would want to be a LL.  

Equity Withdrawal to get into BTL just sounds like a really bad plan in this market to be honest.