Reply to: Time to BTL?

[oracleslave]

I'm beginning to think that under all that BS you know as much about property as AtW knows about economics.

Give the serial renters a break. Who knows, you could have them as tenants in the future.

[sasguru]

Property only ever goes up.

I know this because a property bankrupt named Phil Spencer keeps saying it on TV in endless repeats.

I'm beginning to think that under all that BS you know as much about property as AtW knows about economics.

[DimPrawn]

God no - Twelve more years for house prices to recover - Telegraph

That boat has been totally missed and only worked in the bubble market pre-2009. Why bother with all the grief and illiquidity when you can buy numerous housebuilders shares, or property funds/trust/REIT (commercial and domestic e.g. FCPT) AND diversify across a few business sectors to avoid betting the farm (VOD paying >7% divi this year). Stick it in an ISA, job done.

Property only ever goes up.

I know this because a property bankrupt named Phil Spencer keeps saying it on TV in endless repeats.

[ChimpMaster]

God no - Twelve more years for house prices to recover - Telegraph

That boat has been totally missed and only worked in the bubble market pre-2009. Why bother with all the grief and illiquidity when you can buy numerous housebuilders shares, or property funds/trust/REIT (commercial and domestic e.g. FCPT) AND diversify across a few business sectors to avoid betting the farm (VOD paying >7% divi this year). Stick it in an ISA, job done.

LOL yes because the media is always spot on, as are financial and consulting firms. They saw the credit crunch coming and prepared accordingly after all, didn't they

It's time to buy when everyone else is in a state of fear. Not quite there yet but it's certainly not a bad time to buy.

With a BTL you can easily get a pre-tax ROI of 5%, while 7% and higher is not difficult to achieve. In an economy where ROIs elsewhere are 0.2% to 4%, BTLs are actually an attractive investment proposition. Especially when you think about the long term prospects.

[Scoobos]

Also This ^^

[nomadd]

God no - Twelve more years for house prices to recover - Telegraph

That boat has been totally missed and only worked in the bubble market pre-2009. Why bother with all the grief and illiquidity when you can buy numerous housebuilders shares, or property funds/trust/REIT (commercial and domestic e.g. FCPT) AND diversify across a few business sectors to avoid betting the farm (VOD paying >7% divi this year). Stick it in an ISA, job done.

This^

[sasguru]

Why?

Junior doctors rotate around different hospitals every 6 to 12 months.

AtW, are you beginning to understand why you're such a loser?
The other thing about doctors is that they work such long hours, if they can have top-notch accomodation walking distance to work they grab it.

[Pondlife]

Cheers all,

I was thinking of a couple of 2 bed flats. There is a big hospital locally and it's a decent affluent area.

More pondering required I think.

[kaiser78]

Buy a place on the coast and use as holiday lets. Easy money and bigger returns than long term letting. And you can use it yourself if required as well.

[escapeUK]

Why?

If you were that old and infirm you'd want to be close to a big hospital too.

[Old Greg]

Why?

Junior doctors rotate around different hospitals every 6 to 12 months.

[AtW]

Personally I have always gone for the top end of the market and picked areas for which there is a range of demand e.g.close to the City AND close to a large hospital.

Why?

[lukemg]

God no - Twelve more years for house prices to recover - Telegraph

That boat has been totally missed and only worked in the bubble market pre-2009. Why bother with all the grief and illiquidity when you can buy numerous housebuilders shares, or property funds/trust/REIT (commercial and domestic e.g. FCPT) AND diversify across a few business sectors to avoid betting the farm (VOD paying >7% divi this year). Stick it in an ISA, job done.

[Martin@AS Financial]

BTL mortgage finance is is finally starting to become more available after the downturn. As lenders struggled to shore up their balance sheets, many withdrew their BTL lending proposition and decided to concentrate on what they perceived to be less risky residential lending. As such, this led to maybe 3 or 4 lenders monopolising the market. Rates have remained low however arrangement costs in some cases have been eye watering. Mortgage Works for example on some of their products have been charging anything upto 3.5% on the amount borrowed. With a typical London property being around £300,000, (BTL tends to need a minimum of 25% deposit), this has meant an arrangement fee of nearly £8000 on a £225,000 loan.

The good news is that over the last few weeks, a number of lenders have started to decrease their fees and even their rates. Coventry Building Society for example who have an appetite for low risk and low LTV lending have just released a new BTL portfolio with reasonably sensible arrangement fees. Kent Reliance have recently even launched a 85% ltv product which is something that has not been seen for a long time.

When purchasing a BTL, it needs to be viewed as a long term investment as the days of selling after 2 years and walking away with bags of cash are long gone. However, a sensible decision when purchasing will enable you to enjoy tax benefits as well as the long term uplift in value of the property.


Hope that helps

[alreadypacked]

£ might be overvalued - but then parts of the Euro are alot more overvalued.

That's why I decided to get out of Euro/CHF, and get into BTL.