Daily Boom

[ChimpMaster]

i cannot remember not quite as short has that but probably about 8/9 months then it was back to its usual 8%

regardless the issues were still the same risk of unemployment, social unrest, wider economic issues

Less business-savvy people forget the notion that assets aren't always - or only - about capital growth. The reason why BTLs, for example, are a popular asset class is that you can buy a large asset with little down, i.e. leverage, and then use rental income to pay for that asset over time.

Regardless of whether the property value goes up much (though historically it is proven to go up), your asset will eventually be paid for mainly by someone else.

Alternatively, put a small downpayment, leverage up and pocket the difference between rental income and interest-only mortgage repayments. Do that several times over and you have built up investment income for yourself. Just make sure your mortgage payments are covered, by not stretching too far and also by planning for interest rate rises.

[Freamon]

Just make sure your mortgage payments are covered, by not stretching too far and also by planning for interest rate rises, voids, maintenance costs, agency fees, building management company service charges, ground rent...

FTFY.

[OwlHoot]

rubbish. 10 years of depression. 5 years of ww3. 25 years to forget the lessons. I make that 40 years?

minutes

So by my reckoning 35 years.

[DimPrawn]

Less business-savvy people forget the notion that assets aren't always - or only - about capital growth. The reason why BTLs, for example, are a popular asset class is that you can buy a large asset with little down, i.e. leverage, and then use rental income to pay for that asset over time.

Regardless of whether the property value goes up much (though historically it is proven to go up), your asset will eventually be paid for mainly by someone else.

Alternatively, put a small downpayment, leverage up and pocket the difference between rental income and interest-only mortgage repayments. Do that several times over and you have built up investment income for yourself. Just make sure your mortgage payments are covered, by not stretching too far and also by planning for interest rate rises.

My Sister-in-law has 8 BTL properties. The difference between the rent and the mortgage payments is £1500 a month, which she is saving to put down on another BTL property and then rinse and repeat. By the time she retires, regardless of capital growth the income from the rents will pay a handsome monthly income.

With the west truly forked, interest rates will be zero (or more likely negative with extreme money printing) for decades. This will stoke inflation and rents rise with inflation, so she'll have maybe 20 properties costing nowt in mortgage payments but the rents will be astronomical.

Free money courtesy of idiots like savers, workers and tax-payers.

[ChimpMaster]

FTFY.

So you leave your money in the bank, do you?

[Freamon]

My Sister-in-law has 8 BTL properties. The difference between the rent and the mortgage payments is £1500 a month, which she is saving to put down on another BTL property and then rinse and repeat.

So assuming these 8 are all around the UK average house price of roughly £150k, it would take a 1.5% rise in interest rates to wipe out her monthly income entirely.

[Freamon]

So you leave your money in the bank, do you?

Yeah because obviously if you're not into BTL, this is the only other option.

[DimPrawn]

So assuming these 8 are all around the UK average house price of roughly £150k, it would take a 1.5% rise in interest rates to wipe out her monthly income entirely.

She'll just put the rents up. Tenants have to live somewhere and if they can't pay the rent the taxpayer pays it with benefits.

[Freamon]

She'll just put the rents up. Tenants have to live somewhere and if they can't pay the rent the taxpayer pays it with benefits.

How generous of her to currently be renting out all 8 of her BTLs at a below market rent. Who says the charitable spirit is dead?

[DimPrawn]

And a million immigrants arriving every year and about 50,000 houses being built, means rents are going to rise, where as interest rates cannot rise otherwise all the lenders will be bankrupt again, which will mean massive bailouts again, so the money would have to be printed, stoking inflation which means rents go up.

Whichever way it plays out, the BTLers are millionaires for doing nowt and nothing can ever touch them.