Pay off mortgage or BTL

[DimPrawn]

A significant number are inherited houses. People inherit their parents house, rent it out, maybe with small finance on it.

Or do what my dumb @rse friends did, inherit the house, sell it to a "we buy any house" merchant at low price, and rent it back off the landlord. Then splurge the cash on iCrap and cars and designer clothes.

[unixman]

Over at housepricecrash dot com they seem secure that house prices are going to slump big style in the near future

They always go up in the longer term, just keep hold of the house long enough.

[SandyD]

I thought that too, but apparently it's not the case.
At least not heavily mortgaged.
A lot are foreign owned.
A significant number are inherited houses. People inherit their parents house, rent it out, maybe with small finance on it.

Funnily enough foreign property owners are effing exempt or have a very high allowances unlike UK residents ..... isn't it enough that most of the prime locations in central London properties are owned by foreign investors that are keeping them empty !! They are just penalizing UK small property landlords...

[DimPrawn]

They always go up in the longer term, just keep hold of the house long enough.

The only thing that will cause a big crash is a World War, where most of the prospective buyers are blown to pieces.

We have the 2nd most crowded country in Europe, with a steep rising population from immigration every year, coupled with low interest rates, and QE "funny money" plus foreign "dirty money" looking for a safe haven. We have some of the most protectionist property laws in the world plus low taxes on property.

Safest bet in the World.

[unixman]

I am LTB rather than BTL.
We will be letting our current house and moving into the one we've just completed on, in a few months.
Not much mortgage.

The highly leveraged BTL empire model is absolutely great, provided you can wind the clock back 15 years and get in at a sensible price.
IMHO.
I think there is medium term risk now, but we don't care if price falls in a 5 year window, we are looking to have a solid asset and a bit of income for 15 years, perhaps more. Also the option to move back to current abode in South East.
So, I've probably jumped in near the peak of the market, but it's mostly ill-gotten gains from buying an expensive(ish) place in the mid 90s.

The BTL model is probably still fine so long as you hold on to the house long enough.

I am in quite a comfortable position finance-wise, no dependents, mortgage paid off long ago and substantial savings. Entering the BTL or LTB market is very tempting, if only as a plan B. However, after so long without a mortgage, the prospect of having one is very unattractive, even scary. Especially as a contractor.

[Lightwave]

The only thing that will cause a big crash is a World War, where most of the prospective buyers are blown to pieces.

We have the 2nd most crowded country in Europe, with a steep rising population from immigration every year, coupled with low interest rates, and QE "funny money" plus foreign "dirty money" looking for a safe haven. We have some of the most protectionist property laws in the world plus low taxes on property.

Safest bet in the World.

150% of that has been priced into the market?

[MarillionFan]

Put an offer in on a 3rd property today - 1.73% mortgage and seeing another tomorrow again for borrowing at 1.73%
Return is 6.7% and 7.8% after agency fees.

Fill yeh boots.

[AtW]

Put an offer in on a 3rd property today - 1.73% mortgage and seeing another tomorrow again for borrowing at 1.73%
Return is 6.7% and 7.8% after agency fees.

Fill yeh boots.

You dirty spekulant, repent!!!

[ChimpMaster]

Put an offer in on a 3rd property today - 1.73% mortgage and seeing another tomorrow again for borrowing at 1.73%
Return is 6.7% and 7.8% after agency fees.

Fill yeh boots.

Even given the £2k fee on that mortgage, it's a cracking deal. 1.23% above their Bank Rate on 60% LTV. I got one with Virgin earlier this year at 2.39% on 70% LTV (only £500 fee though) and I thought that was a good deal! This one property is yielding 20% however so it's all good

I'm guessing Natwest don't deal with contractor types?

[MarillionFan]

Even given the £2k fee on that mortgage, it's a cracking deal. 1.23% above their Bank Rate on 60% LTV. I got one with Virgin earlier this year at 2.39% on 70% LTV (only £500 fee though) and I thought that was a good deal! This one property is yielding 20% however so it's all good

I'm guessing Natwest don't deal with contractor types?

Second one didn't get accepted. But met with my builder yesterday. Seen a plot for planning for four flats, so having him work through the numbers for the build. Hopefully he'll come into make it worth while going to the auction.