You are better off renting now

[sasguru]

Indeed, her show will be fooked soon, I consider myself more of a common sense expert armed with factual evidence and humility, among the likes of SAS (wasn't I clever guru) who is always right even when he's blatantly wrong. In a moment he will tell us the BTL model still works in current conditions, he will however provide no evidence other than abusive anecdotal posts about his financial brilliance

I don't consider myself to be financially brilliant (quite the opposite).
The proof of the pudding is in the bank account, to coin a phrase.
Call it luck if you will - I prefer to call it controlled risk-taking.
And yes BTL can still, in certain conditions, work - provided you know your local market inside out.

[AtW]

I don't consider myself to be financially brilliant (quite the opposite).

We noticed that

[Bagpuss]

and are willing to put a large amount of capital at risk.

[b0redom]

... Assume I have 100k cash and want to buy a house for 400k which if I rented would cost me 1500 pounds a month. If had to get a mortgage on that for 25 years at 6.5 % it would cost me 2025.62 a month plus 100 pounds a month for maintenance plus 100 pounds a month for service charge and ground lease and all expenses that you only have as a owner. .....

If you're paying ground rent and service charge on a house, you've got a VERY bad deal and I've got a 2nd hand motor you might be interested in... One lady owner.... genuine 10,000 miles......

[sasguru]

and are willing to put a large amount of capital at risk.

I think you'll find that most wealthy people at some point in time "put a large amount of capital at risk".
He who dares, Rodders, he who dares.

[sasguru]

We noticed that

I'll settle for thick and wealthy. Best combination IMHO.

[DimPrawn]

See? House price, BTL, renting threads are the best!

(apart from ones about immigrants of course).

[Clippy]

See? House price, BTL, renting threads are the best!

(apart from ones about immigrants of course).

I think you'll find the ultimate threads are the ones that mention house prices, BTL, renting and immigration in one fell swoop.

Like this now does.

Perfick.

[Bagpuss]

The idea was to invest as little of your own money as possible? gearing and all that, well done! You had the money at the time, some didn't. It can't be done now, with any sort of room for manoeuvre, the smart people are looking elsewhere for investments while some idiots are still pilling in, which is great for those getting out. Pilling in large deposits= less profit. I'd rather do what Soros does and buy at the moment of maximum pessimism, not while there is still some positivity in the market.

[Bright Spark]

You can easily make this calculation. Assume I have 100k cash and want to buy a house for 400k which if I rented would cost me 1500 pounds a month. If had to get a mortgage on that for 25 years at 6.5 % it would cost me 2025.62 a month plus 100 pounds a month for maintenance plus 100 pounds a month for service charge and ground lease and all expenses that you only have as a owner. This would mean 725.62 pounds a month saved that if I invest for 25 years at a rate of 4% with the initial 100k that I didn't put down as a deposit would give me a final amount 644445.85. If your house 25 years later will be more than that then you made a profit.

Post war house prices have doubled in value every 7 years, therefore
the 400k * 25/7 = 1,428,571 after 25 years, more than likely equity would
be released half way to fund a few more BTL's. owning is always better
because property value growth is always a higher return.
Also factor in other countries joining Europe, growing UK population and
limited supply of land....