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50k buy to let

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  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    buggy_boy wrote: »
    I would say stupid financial advice but then you gambled on prices falling yrs ago and lots big time so you probably would have been better off in hind sight putting it on the lottery.


    I had no interest in house prices really until the 2008 crash, or just before, so you have your wires crossed there somewhere I`m afraid.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    buggy_boy wrote: »
    At the moment no, BTL is still a better return however I would agree BTL is a lot more work and potential risk... If you only have 50k then no don't go into BTL, if its part of a wider investment portfolio then yes.


    BTL has no part in a sensible "Wider investment portfolio" now. You are letting your own bets cloud your judgement IMO.
  • jimbog
    jimbog Posts: 2,113 Forumite
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    Crashy_Time wrote: »
    Still a better punt than BTL at the moment IMO.

    Better keep that to yourself. Wouldn't want your landlord to hear you :rotfl:
    Gather ye rosebuds while ye may
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Crashy_Time wrote: »
    BTL has no part in a sensible "Wider investment portfolio" now. You are letting your own bets cloud your judgement IMO.

    BTL has become more difficult but as a spread and long term investment only and as long as you put enough deposit in and its done in a company structure it can be a very good way especially considering current interest rates, if rates increase to 4-5% then that would tip the balance.
  • PhilE
    PhilE Posts: 566 Forumite
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    Many factors in this. If you could predict which areas are to become gentrified, you'd strike a gold mine.

    If the property is in good condition and prices on the rise, then you have nothing to lose. Things can and do go wrong, but do your research, get a good deal and BTL can be a good investment. You could always buy now, sell later and use the profit to invest in a bigger property/flat for rent. You'll know the ropes a bit more by then also.
  • bris
    bris Posts: 10,548 Forumite
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    Cakeguts wrote: »
    They don't rent to good tenants for about £450 per month they rent to the tenants that no one else wants because they stop paying the rent or wreck the house. For a good tenant paying £450 per month you need to pay around 100k.
    Talk about stereo typing a neighbourhood.


    What a lot of tosh you just wrote. For one thing £100k doesn't get you good tenants, a million can't even do that. There are good and bad tenants whatever the price range.


    OP tenants aside, a 50k property is not going to rise in value, it's in a neighbourhood that will attract vey little growth.


    Yes you need to maintain the property, boiler, electrics, everything. By the time you pay for maintenance, tax on the rent (if applicable) etc it will take you about 15 years to get your money back. Do you really want the hassle of all the trouble this could and will bring.


    One bad tenant, and you will get at least one and the repairs will go through the roof, think hard about what your 50k can do elsewhere.
  • markin
    markin Posts: 3,848 Forumite
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    bris wrote: »
    Talk about stereo typing a neighbourhood.

    What a lot of tosh you just wrote. For one thing £100k doesn't get you good tenants, a million can't even do that. There are good and bad tenants whatever the price range.





    OP tenants aside, a 50k property is not going to rise in value, it's in a neighbourhood that will attract vey little growth.


    Yes you need to maintain the property, boiler, electrics, everything. By the time you pay for maintenance, tax on the rent (if applicable) etc it will take you about 15 years to get your money back. Do you really want the hassle of all the trouble this could and will bring.


    One bad tenant, and you will get at least one and the repairs will go through the roof, think hard about what your 50k can do elsewhere.


    If i had 50K in 2004 i could have more than doubled it without spending a penny on it in 5 years, And the house still holds its value even now. if i had 75k 5 years ago to buy a different house same road, i could have done some work on it and still made 30K selling it today.

    Rule 1 is the worst house on a nice street, usually best from well kept house lived in by an elderly lady.

    I know people who buy to sell as a living, and its the best way.
  • BrassicWoman
    BrassicWoman Posts: 3,202 Forumite
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    Zombie thread alert
    2021 GC £1365.71/ £2400
  • Murphybear
    Murphybear Posts: 7,279 Forumite
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    ViolaLass wrote: »
    Sweets can get dropped even if your parents are married/still together. Disabled people can drop things too.

    Judging by the nations obesity crisis it’s not just children who eat sweets :rotfl:

    There is a lot more to being a landlord than buying a property then sitting back and waiting for the rent to roll in.

    What would you do (legally) if the rent stops suddenly?
    How would you (legally) get the tenants to leave?
    How would you (legally) ask for a rent increase?
    What are the tenants rights (legally) if the heating stops working?

    These are very basic questions that a landlord must know.

    As someone else said, you are probably not cut out to be a landlord and should invest your money somewhere else.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    buggy_boy wrote: »
    At the moment no, BTL is still a better return however I would agree BTL is a lot more work and potential risk... If you only have 50k then no don't go into BTL, if its part of a wider investment portfolio then yes.

    You can invest in property funds, why bother with the hassle (maybe) of being a landlord?
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