Would you invest £30k in buy-to-let now?

[MarillionFan]

Where do I get me one of those?

Fixed-rate Savings Accounts : protection against fluctuations in interest rates - The AA

****ers have dropped the rate to 4.55%!!! I've had the form on my desk for two weeks!!

[NorthWestPerm2Contr]

Here is a secret:

RBS and LLoyds are government backed, I know people who are making 20k per cycle on each of those shares. They have gone up 30% in the last 8 weeks alone.

No better than stocks at the moment if you ask me. As soon as the econonmy recovers you will be making ****loads

[MarillionFan]

Here is a secret:

RBS and LLoyds are government backed, I know people who are making 20k per cycle on each of those shares. They have gone up 30% in the last 8 weeks alone.

No better than stocks at the moment if you ask me. As soon as the econonmy recovers you will be making ****loads

Both shares have a cap, they are presently at that cap. They can only go down IMO or go sideways.

Boat missed!

[NorthWestPerm2Contr]

well for the last 8 weeks they havent stopped going up, so if u bought at the beginning of that cycle or buy at the beginning of the next then you are guaranteed money. One contractor in my current gig make a couple of 100k in a year cos he knows his stuff when it comes to shares.

[MarillionFan]

well for the last 8 weeks they havent stopped going up, so if u bought at the beginning of that cycle or buy at the beginning of the next then you are guaranteed money. One contractor in my current gig make a couple of 100k in a year cos he knows his stuff when it comes to shares.

and I've made quite a lot over the year. But word of advice. Dont get caught by one persons story of 100k.

Happened to me during the dot com boom, stopped buying houses and started buying shares. I lost 50k pure hard cash!

Do your own research!

[scooterscot]

Imagine you have £30k already in premium bonds. You are tired of receiving maybe the odd £50/month from this. You already own your own property and don't need to reduce the mortgage on it.

Would you do a buy to let on a £100k flat? £25k down, £5k for transaction cost, furniture, fittings? Get £450/month rent in? This would cover the £75k buy-to-let mortgage.

Long term it could be a good deal. Rents would go up over time. Property value would increase over time. All for a £30k investment now.

Thoughts?

This is almost exactly the same outlay I put out on the Glasgow flat except I get £625 pm,

[TimberWolf]

Fixed-rate Savings Accounts : protection against fluctuations in interest rates - The AA

****ers have dropped the rate to 4.55%!!! I've had the form on my desk for two weeks!!

Cheers. Might be worth putting a few quid in there, but I'll hang back. In effect it's betting inflation and the devaluation of the £ will be less than 4.55%/year over the coming years, which I don't think is looking likely.

[lukemg]

BTL – not for me thanks, I am far from certain that the property market has stabilised, especially for these flats. Add in additional costs, potential grief (mate was seriously threatened after a tenant stopped paying, took months to get them out). I am presuming you are all using up shares ISA allowance each year – now up to 10200 pa ? My Aberdeen Asia Pacific are up 40% in 2 years. Portfolio averaging 7.2%pa across a range of funds since 97 (includes serious dips in 2000 and recently).
Forget individual shares, especially in the UK, that is too risky, you don’t know enough to win. Forget the odd tale of someone getting lucky too, gamblers on horses always tell you when they win too.
If you haven’t a clue, look at fool.co.uk, maybe start with a uk index tracker (get the lowest cost one you can find) from there think about Absolute Return managed funds and diversify to Europe/US, for more risk/potential reward you have to be thinking about asia-pacific and BRIC areas.
KEY – Has to be money you don’t need for a number of years (as for a BTL) You HAVE to hold your nerve for 5-10 years and NEVER sell when the market is struggling. I haven’t sold a fund yet (although may do some pruning). Last years dog can turn around (Fidelity S.E. Asia went up 70% in a year after a few years going sideways)