Advice on Buy To Let Please

LULULU1

Hello,

I currently own my own home which is valued at approx 200k. I have a 75k mortgage.

I am thinking about entering the Buy To Let market as I have offered 130k for a property which is person is in urgent need to sell. It is the market for 165k.

Based on the above senario would it be a sensible move for me to make.

I would need aprox 80% BTL mortgage, the other 15% I would raise against my current property.

Thanks

Lulu

sammyjammy

Personally I wouldn't recommend anybody take on a first time Buy to Let at the moment, now is not the time ,take advantage of the fact that you've got a low loan to value mortgage on your own house and pay off as much as you can.

There has been a time when people have used it as an easy way to make money, its never been that and definitely isn't now! Ask the people subsidising their interest only Buy to Lets already....

Sam

Jonbvn

LULULU1 wrote: »

Hello,

I currently own my own home which is valued at approx 200k. I have a 75k mortgage.

I am thinking about entering the Buy To Let market as I have offered 130k for a property which is person is in urgent need to sell. It is the market for 165k.

Based on the above senario would it be a sensible move for me to make.

I would need aprox 80% BTL mortgage, the other 15% I would raise against my current property.

A property is worth only what someone is willing to pay for it. Therefore, the £165k may be pie in the sky. I think you will likely need more than 15% deposit.

How much would the rent be? It should be sufficient to cover 120% of the mortgage interest.

Given the current state of the property market, do not rely on any capital appreciation in the short term.

Pobby

My advice is don`t do it right now.No one knows which way property is going to go.I don`t think you will see much capital growth for many years to come.

There are a lot of b-t-l landlords subsidising their investment albeit buy making up rental shortfall either because they cannot charge enough rent or they are having trouble letting.

The advice to pay down your own loan on the existing property would be tharoute I would chose.

Browntoa

another self promoting spam post by kevind

reported to abuse

sarkin

Do we have multiple posters here