Buy To Let.....

[aceboy]

Thanks for all the replies...



Few more questions for the land lords:

a) did you choose an interest only or a repayment mortgage, and why?
b) have you have any "horror" stories happen to you? for example tenants wreaking the place...etc
c) did you buy in the area you live or a different area?

Thanks

[sasguru]

Thanks for all the replies...



Few more questions for the land lords:

a) did you choose an interest only or a repayment mortgage, and why?
b) have you have any "horror" stories happen to you? for example tenants wreaking the place...etc
c) did you buy in the area you live or a different area?

Thanks

a) when I first became a BTLler in the late 90s I was going for capital growth so interest only, since repayment mortgages are front-loaded anyway. Not sure about doing that now.
b) No horror stories but one tenant caused some water damage to one of my properties - it was supposedly being looked after an agent at the time. But they were no help. After that I realised that agents didn't ofefr that much value and left them out of the equation.
c) I lived in roughly the same area (Spitalfields/Shoreditch) - it helps when you have to do stuff - but I also knew the area, demographics etc. very well. This helps in marketing your property, understanding tenants etc.
Definitely buy in an area you know well.

[Basil Fawlty]

a) when I first became a BTLler in the late 90s I was going for capital growth so interest only, since repayment mortgages are front-loaded anyway. Not sure about doing that now.
b) No horror stories but one tenant caused some water damage to one of my properties - it was supposedly being looked after an agent at the time. But they were no help. After that I realised that agents didn't ofefr that much value and left them out of the equation.
c) I lived in roughly the same area (Spitalfields/Shoreditch) - it helps when you have to do stuff - but I also knew the area, demographics etc. very well. This helps in marketing your property, understanding tenants etc.
Definitely buy in an area you know well.

All good advice. In addition I'd add :

a) Don't forget your interest can be offset against tax, so if you start repaying capital you'll be increasing your tax bill. If you've income left after paying the interest only portion of the mortgage then it's beneficial to use this to pay down your domestic mortgage before your BTL one.

b) Make sure you reference your tenants properly, there's loads of resources on the web for this. I've had loads of problems with letting agents, but <luckily> not so much with tenants, hence I now manage my properties myself.

c) Absolutely vital to live near the properties if you're managing yourself. Even more important is to understand the local renting market.

[Freamon]

Thanks for all the replies...



Few more questions for the land lords:

a) did you choose an interest only or a repayment mortgage, and why?
b) have you have any "horror" stories happen to you? for example tenants wreaking the place...etc
c) did you buy in the area you live or a different area?

Thanks

What alternative investments to BTL have you considered and discounted, and why?

[DimPrawn]

What alternative investments to BTL have you considered and discounted, and why?

WTF is wrong with you?

Have you never watched Property Ladder / Location Location Location / Homes Under the Hammer?

[Freamon]

WTF is wrong with you?

Aren't you yet another mindless sheeple dribbling in front of the TV at Property Ladder / Location Location Location / Homes Under the Hammer?

FTFY.

No btw.

[DimPrawn]

FTFY.

No btw.

Well basically it's this.


You buy a house, then borrow loads of money on credit cards and loans and buy a big expensive car, go on lots of exotic holidays, put all your kids in private school, that sort of thing, and the house goes up in value by loads, which means you can pay off the extravagent lifestyle with the proceeds AND still have the house!

FREE MONEY!!!

And Merv makes sure it NEVER ENDS!

[MichaelHunt]

Well basically it's this.


You buy a house, then borrow loads of money on credit cards and loans and buy a big expensive car, go on lots of exotic holidays, put all your kids in private school, that sort of thing, and the house goes up in value by loads, which means you can pay off the extravagent lifestyle with the proceeds AND still have the house!

FREE MONEY!!!

And Merv makes sure it NEVER ENDS!

Cretin

[Freamon]

Well basically it's this.


You buy a house, then borrow loads of money on credit cards and loans and buy a big expensive car, go on lots of exotic holidays, put all your kids in private school, that sort of thing, and the house goes up in value by loads, which means you can pay off the extravagent lifestyle with the proceeds AND still have the house!

FREE MONEY!!!

And Merv makes sure it NEVER ENDS!

Really? I've heard it's more like:

1. Clueless couple buys a house that needs a bit of paintwork for the highest price ever on that street.
2. Couple wastes £10k repainting it to a style that is not everyone's taste.
3. After 8 months of fannying around they manage to sell it for £15k more than they bought it for, but this increase is largely due to a rising market rather than the works the couple have done.
4. This is obviously all in the years 2003-2007 whilst the market was still rising, although the repeats fail to mention this.
5. No programmes have been made for several years as almost nobody is actually making any money doing this anymore.

[DimPrawn]

Really? I've heard it's more like:

1. Clueless couple buys a house that needs a bit of paintwork for the highest price ever on that street.
2. Couple wastes £10k repainting it to a style that is not everyone's taste.
3. After 8 months of fannying around they manage to sell it for £15k more than they bought it for, but this increase is largely due to a rising market rather than the works the couple have done.
4. This is obviously all in the years 2003-2007 whilst the market was still rising, although the repeats fail to mention this.
5. No programmes have been made for several years as almost nobody is actually making any money doing this anymore.

Apart from sasguru, who has magically gone from hugely in debt to mult-millionaire in a matter of months.