GreenStreetPlayer
12:39 Fri Apr 28
Re: Buying a House - Advice Please
|
Homes are for living in, not making money out of.
This country is obsessed with house prices and wealth through housing. It's pure greed and have spoiled it for a generation.
The word investment should not be used in the same sentence as property.
Find a nice house and enjoy it without getting into debt.
|
Gavros
12:31 Fri Apr 28
Re: Buying a House - Advice Please
|
still good yields in university towns. the risk is the entry of large funds with purpose built student blocks, but theyre about twice the rent of traditional student digs and mainly favoured by friendless foreign students. Domestic students still like living together. I picked up a couple of properties in Liverpool which yield 14% gross and have always been occupied and never had any trouble with rent.
|
Woodford Green
12:28 Fri Apr 28
Re: Buying a House - Advice Please
|
Reply Spandex Sidney 11:46 Fri Apr 28
Re: Buying a House - Advice Please
I make most of that right although you will still get some tax relief on the mortgage interest but this will be ultimately only 20% of your interest within a few years.
Now is not the time to get into the BTL game, particularly in the south east. The yields are simply not there anymore unless you are a cash buyer or need to borrow no more than 30-40% LTV.
|
Spandex Sidney
11:55 Fri Apr 28
Re: Buying a House - Advice Please
|
Razzle 10:23 Fri Apr 28
Re: Buying a House - Advice Please
Buy now, mortgages are at there lowest ever and the prices for property will only ever go one way. Do not overstretch that mortgage so you dont get caught out.
This is a bear trap waiting to happen. People say 'there's a massive housing shortage, how can you go wrong?!'. Well if landlords are withdrawing for the reasons I have the house market still needs to be AFFORDABLE. Even landlords won't buy unless then can make a annual profit. The average house is currently 11 times the average wage, how long is that sustainable for?!
Plus don't tell me rates aere at their lowest, they are not. The 2008 credit crunch put paid to the REALLY low rates, whne I bought my last BTL in 2007 I got a 20 year interest only mortgage with Birmingham Midshires that was 0.5% BELOW base for three years with a SVR after of 2% above base for the remainder. When the base rate went down to 0.5% I actually paid no mortgage for about a year! I sold the property recently and was still paying £197 a month on a £107,000 mortgage.
The deals you could get back then were mental.
|
Spandex Sidney
11:46 Fri Apr 28
Re: Buying a House - Advice Please
|
Vexed 9:42 Fri Apr 28
Re: Buying a House - Advice Please
"being a landlord isn't worth it anymore"
I reckon you're doing it wrong then.
How about a 3% premium on BTL stamp duty? Buy a £250k house to rent out and you pay £10,000 stamp duty straight up front. How long until you make that loss back?
How about the withdrawal of higher rate tax relief on the mortgage? It's easy to fall into the higher rate these days, I also have a business (which is what a BTL house is) and I can deduct all my expenditure in running that business before the profits are taxed. Under this change if you recieve £10,000 a year in rent and your mortgage is £8,000 a year you will also pay £4,000 in income tax so you are LOSING £2,000 a year WITHOUT repairs, voids, insurance, etc. Plus you've already done £10,000 in stamp duty remember?
What about the nightmare tenants? I had two in 15 years, not bad you say? The last one knocked me for £3,000 in rent, £2,500 to get her out and £11,500 in damage to the property. If you are a long term landlord you will get at least one of these and there is fuck all you can realistically do about it. Especially if you've done £10,000 in stamp duty and are losing £2,000 a year IF the property is actually occupied!
Plus how about the council tax changes? From 1st April 2017 when you have a void not only to you still have to pay the mortgage but you also have to pay the FULL council tax, you get 0% reduction in the full rate from the second they move out/evicted. How long can you afford to pay for two mortgages and two lots of council tax?
And what if you somehow manage to sell the property years down the line and actually have made money on the entire endeavour? You will have to hand over 28% of the profit on the property to the taxman.
I haven't bought a BTL propertry since 2007, it was WELL worth it back then. But like all bandwaggons it comes to an end and the simple fact is that new landlords sometimes do not do their sums. The highest loan to value I had on a property was 60% of the house's value and from this tax year I could no longer make enough money to make it worthwhile, mainly due to the tax changes.
DO NOT do a BTL just in the hope of capital growth, you HAVE to make money on it year in, year out to meet the costs of voids/damage/insurance/tax/mortgage, etc. You wouldn't prop up a business that loses money every year in the hope you might sell for a profit down the line would you? And this is exactly what BTL property is, a business.
|
Razzle
10:23 Fri Apr 28
Re: Buying a House - Advice Please
|
Buy now, mortgages are at there lowest ever and the prices for property will only ever go one way. Do not overstretch that mortgage so you dont get caught out.
|
On The Ball
10:13 Fri Apr 28
Re: Buying a House - Advice Please
|
If you're in it for the long-term and buying it outright, I don't see how you can go wrong. Even if you do get a small mortgage (aren't they at their lowest levels ever, or something?) I can't see how you can lose.
In ten years it'll be worth more. Sell and retire then.
|
ted fenton
9:49 Fri Apr 28
Re: Buying a House - Advice Please
|
Buy something in Cyprus Spain or similar and retire !!
Put your feet up and enjoy :-)
|
Vexed
9:42 Fri Apr 28
Re: Buying a House - Advice Please
|
"being a landlord isn't worth it anymore"
I reckon you're doing it wrong then.
|
goose
9:06 Fri Apr 28
Re: Buying a House - Advice Please
|
I'd spend it quick before your ex claims her share.
|
PwoperNaughtyButNot
8:51 Fri Apr 28
Re: Buying a House - Advice Please
|
Get onto Savills and look at their auction catalogue - pick up a bargain and then get Dion Dublin round to give it the once over.
|
terry-h
11:51 Thu Apr 27
Re: Buying a House - Advice Please
|
Tomshardware 8:29
Has Northern Sold's neighbour put his house up for sale?
|
Charoo
11:42 Thu Apr 27
Re: Buying a House - Advice Please
|
Our house went back on the market on Thursday last week and we sold to first time buyers by Sat afternoon for over ask - we actually had 4 offers of full ask or over.
Everything we looked at that is decent or has potential goes within a matter of days - it may slow slightly but houses aren't gonna lose £14.4k a year in value which is what you pay in rent.
|
Gavros
11:36 Thu Apr 27
Re: Buying a House - Advice Please
|
You can still get a small 2 bed in Dagenham for 200....then again you have to live in Dagenham
|
BigDingus
11:33 Thu Apr 27
Re: Buying a House - Advice Please
|
Thanks for all the (sensible) advice chaps - loads to think about there.
Am currently forking out 1200 a month in rent so I need to get moving (no pun intended). The only downside is that I'll have to live in Kent !
|
Roby
11:22 Thu Apr 27
Re: Buying a House - Advice Please
|
You don't state how much you are currently spending on rent...
That is a crucial factor in your decision I think.
I'd buy the house and if you want to recoup some funds back into a savings account to be safe then get a lodger.
The money you'd then save on rent plus a few grand a year on renting a spare room would hugely boost your disposable income.
Make your money work for you.
|
Spandex Sidney
10:44 Thu Apr 27
Re: Buying a House - Advice Please
|
Yeah I'd hold on. I had two rental properties that I've sold because being a landlord isn't worth it anymore and I'm guessing a few others will do the same.
You have cash in hand so if the market softens, which it probably will when the average gaff is 11 times the average salary, you turn into the BigDickus of house buyers!
|
Gavros
10:28 Thu Apr 27
Re: Buying a House - Advice Please
|
fuck a buy to let mortgage, just get a normal mortgage, rent it out after six months, and go and (literally) spunk your money away in Asia safe in the knowledge that someone else is paying your mortgage.
|
Iron Duke
10:11 Thu Apr 27
Re: Buying a House - Advice Please
|
You could probably put down a large deposit, get a small mortgage and still pay a lot less than renting.
|
Charoo
10:08 Thu Apr 27
Re: Buying a House - Advice Please
|
Unless you're planning on dying soon then buy a house, you're gonna hopefully need somewhere to live for the next 30 years or more, property prices will only ever ultimately go one way and landlords don't ever give you fuck all of your rent back.
|
1964
8:45 Thu Apr 27
Re: Buying a House - Advice Please
|
It's never the wrong time to buy a house.
|
| 
