BTL in London

[russell]

Interest rates would make me very nervous unless of course buying with a small or zero mortgage. If they jump up to 5% you could find yourself with a property you can't sell and can't cover the costs for.

The problem as I see it is loads of properties were bought before the prices boomed, on mortgages which are now at 1.5%. You can't compete since you have to pay more and can't get such a low mortgage rate.

That's a bit defeatist, now is a great time to buy, if you have cash you can get a great deal on auctions from all the plonkers who took 105% mortgages, by the time next year comes Interest rates will have risen which will squeeze even more of them into repossession. Also potential first time buyers have to rent as they can't afford 25% deposit that is required = demand.

[AtW]

Cough, don't want to brag but I'm going to, my 1st let house is 0.49% above base

[Sysman]

Tinned food, shotguns, water.

And an underground bunker big enough to rent out rooms.

You'll be abe to charge top dollar when the apocalypse comes.

[scooterscot]

An offset account too! So I can borrow back the cash from the mortgage already paid off by the tenant at a massive 0.9% apr.

I should learn to gamble on the stock market but that's just not me.

[AtW]

Tinned food, shotguns, water.

Don't forget fuel and batteries...

[MarillionFan]

Cough, don't want to brag but I'm going to, my 1st let house is 0.49% above base

So is mine at 0.48. Offset. Brilliant.

I'm trying to decide whether pulling a chunk of it
Down and investing in a London BTL is a good idea?

[AtW]

I should learn to gamble on the stock market but that's just not me.

I think you should do it. You'll take all those City types to the cleaners.

And hopefully you'll earn so much that you won't be able to relate yourself to mere mortals here on CUK (zeity excluded).

[scooterscot]

So is mine at 0.48. Offset. Brilliant.

I'm trying to decide whether pulling a chunk of it
Down and investing in a London BTL is a good idea?

If only I had a crystal ball I'd might match your move but something inside is telling me, patience, patience.

If you do, it's the best yield through rent you're after. Forget making a decent profit from sale that's ten years away.

Our idea instead, for the moment, is to use the cash for the offsprings education when that time comes.

[scooterscot]

I think you should do it. You'll take all those City types to the cleaners.

And hopefully you'll earn so much that you won't be able to relate yourself to mere mortals here on CUK (zeity excluded).

Massive amounts of cash does not really do it for me. Shocker. I'm comfortable as I am.

If those I know are happy then I'm happy.

[MarillionFan]

If only I had a crystal ball I'd might match your move but something inside is telling me, patience, patience.

If you do, it's the best yield through rent you're after. Forget making a decent profit from sale that's ten years away.

Our idea instead, for the moment, is to use the cash for the offsprings education when that time comes.

It's all come out of bonds and I'm deciding what to do. Re-invest or BTL. 5 years are the best returns but it's still 5%. Not sure if a BTL in London with increasing rents over 5 years and a possible capital gain is risky or not risky.