1at Buy to let...

slipthru

goldenchris wrote: »

its really part of a long term strategy to have a propery in place for when markets become bouyant again.

Would it not just make sense to pay of your debt and save a deposit and wait for the housing market to start rising again.

As someone said you are looking at top rent in a poor area.

mfs1959

This is a brilliant idea - and what makes it even better is that we can all advise you to do it and then in 6 months have a fantastic laugh at your expense.

If you think you can afford it go ahead - but just think - why can you buy this house at less than its valuation? Is it a fiddle by the agent to get you the mortgage that you want? If the house is worth more than you are paying then why not sell it for that much? And what would the Building Soc or Bank say if they knew you were fraudulently applying for a loan?

If you still feel like going ahead I would advise you to do so, but on two conditions. The first, when it all flops magnificently don't complain. The second, go onto housepricecrash and give us all a good laugh!.

brit1234

mfs1959 wrote: »

This is a brilliant idea - and what makes it even better is that we can all advise you to do it and then in 6 months have a fantastic laugh at your expense.

If you think you can afford it go ahead - but just think - why can you buy this house at less than its valuation? Is it a fiddle by the agent to get you the mortgage that you want? If the house is worth more than you are paying then why not sell it for that much? And what would the Building Soc or Bank say if they knew you were fraudulently applying for a loan?

If you still feel like going ahead I would advise you to do so, but on two conditions. The first, when it all flops magnificently don't complain. The second, go onto housepricecrash and give us all a good laugh!.

Go for it, don't listen to all the doom mongers. Property is a surefire winner. After all property always doubles every 6 years. You could be a property millionaire within 2 years. All this talk of crashing is short lived. You flat will be £500k within no time.*





*:exclamatiYour property is at risk if you are stupid or dense enough to do buy to let. Repossessed homes are in danger of being sold at half there value to first time buyers who will laugh at your expense.:rotfl:

Riq

You say North East. Do you actually know the area you are getting this BTL place in?

real1314

Riq wrote: »

You say North East. Do you actually know the area you are getting this BTL place in?

That's the most pertinent point from the OPs initial post imho.

OP, have you seen the property in person, looked around the area, looked at other properties available, looked at properties to let, checked the prices, checked how many are available?
The key to BTL is knowing what you are buying. it's worth going to the area once or twice to get a real idea of what it's like, go in a couple of pubs and shops (netto, asda, aldi) to get an idea of what the areas like.

I drove a mate round openshaw once, it made him realise that although it was a property boom hot spot on paper, it wasn't a place he'd want to invest in.

Riq

You were brave to drive through openshaw!!! :cheesy:

SteveyLomas

Golden Chris - if you go ahead with this, it is likely to make you bankrupt or financially cripple you for many years to come. I say it is likely, and not certain, as I don't know all the details, but consider these two points:

Why is someone selling you a house for 'beneath the market value'? The only possible plausible explanation that would mean you are not being ripped off is they needed the money very quickly, as in quicker than could be obtained by an auction. Is this the case? If someone says this is the case are you sure? You need to make an independent appraisal and see what has been sold in the last month or so that is similar to your property. Your sources and research have to be absolutely impeccable before you can believe this.

You talk some of the lingo, so I will put my next point in finance terms. Have you stress-tested your forecasts and fully considered your low-case scenario. Your low-case is an untenanted residence, with house prices falling at 10% per annum and personal expenses that continue to out-strip your earnings. This would be a massive disaster that would blight you for the rest of your life. Your high case is rent that covers your mortgage and loan costs, house prices remain flat, there are no problems with the flat, interest rates do not go up and you begin to spend less than you earn. If all these things hold true, which I think is highly unlikely, you will be in exactly the same position in two years time as you are now. No upside.