BTL, is it still viable?

[kuro]

Been thinking about this for over a year now but after the recent changes to btl by Osbourne is it still a viable investment?

I’m not 100% sure but my partner is convinced it’s the right way to go. She’s done the figures on investing around £50k on a 2 bed property of approx £150/160k. Rental value would be about £650 a month and my town is a very popular location in these parts so shouldn’t be issues with getting tenants and we would hand over management to an agent to minimise hassle.

We wouldn’t be doing it to make huge profits as I know those days are gone, we are looking at it more as long term investment. I should also mention that we are both lower rate tax payers if that makes a difference.

We have to make a decision soon so any advice is appreciated.

Thanks

[kuro]

Porsche911R said:

BTL is a 15 year investment these days imo, with a loss if you get out sub 5 years.

I look at them as retirement income only, or an income after 15 years if you get in while you are younger.
They are hassle also and a new boiler can knock you back 2 years, or bad tenants even worse.

Still if you don't need the £50k ever then still a good idea.

just looking £650 rent will not pay it off in 15 years ;-(

Edited by Porsche911R on Tuesday 14th March 15:27

Okay thanks. Just mentioned the paying of aspect to my partner, she is talking about an interest only mortgage.

[kuro]

Useful replies which seem to clarify my doubts about entering into btl. My partner seems sold on the idea and gets uptight when I suggest looking at alternatives. In her eyes she sees a small income of between £150/200 per month and relying on the property increasing in value. While I like the idea of it, I'm concerned about the potential risks, hassle and expenses that have been pointed out here. We have looked at stocks and shares isas's aswell and I'm more inclined to go down that route.

[kuro]

clio007 said:

drainbrain said:

Ach, I thought as the OP is in Devon a Devon property might be more appropriate. Obviously he could buy one in Glasgow......

http://www.futurepropertyauctions.co.uk/property_d...

.....and THAT one's easily rentable at £500 a month (not £400 as the auctioneer says).....but, well..... 'but' something or other I'm sure.

As to "BTL, is it still viable"? I can tell you that right now it is definitely viable, if viable means profitable. No ifs or buts. Definitely viable.

Personally I wouldn't overthink the matter, or try to guess what tomorrow, next week, next year or 10 years will bring. That's just a way to make yourself crazy.

Thats a guide price so who knows what it will make in auction. Is that particular area easy to rent?

Not familiar with Okehampton tba. It's more or less exactly opposite to me on the other side of dartmoor so a bit of a trek to get to. Good point about starting with a 6 figure debt. We can get flats for much cheaper but the missus is set on a house and isn't keen on leasehold property.