£25,000. Buy a car or Btl

[gregs1959]

In a dilemma. Would like to buy a nice car. Do I spend £25,000 on one or do I put it down on a BTL.

Lots of properties around for £75,000. Rental income say £450.00 month. Repayments I expect are less than £200.00.

Leaves minimum £250.00 surplus. £50.00 month for tax man. £200.00 to finance a car.

How does that sound ????

Mark.

[flight147z]

gregs1959 said:

In a dilemma. Would like to buy a nice car.

If you want a car, just buy a car

[SystemParanoia]

There's always more money...

[LeoSayer]

Your sums don't include expenses for running the BTL eg. maintenance.

And no allowance for voids or rental income dropping.

[AndStilliRise]

Life is too short, buy the car.

[drainbrain]

Buy a cheaper property without borrowing.
Get a good agent with experience in managing property like yours.
Expect to bank about 60% of the achievable rent over any annual period.

[Prohibiting]

I'm in a similar situation to you and this has been my plan for the last 6 months.

I have a 2-bed BTL which I sold (accepted an offer on Monday). When I pay off the mortgage, pay fees etc and wash my hands, I'll have £81k. My plan was to reinvest this into a 3-bed house in a nice location.

I realised that life IS too short, so I plan to 'invest' £30k on a modern classic car, one which I've always wanted which will leave me with £50k. I'll reinvest this into a 2-bed BTL albeit in a more desirable location with a longer mortgage to the one I've just sold.

I've been debating about buying a modern classic for the last 4 years and they're getting further out of my reach. I'm getting married in April and I've come to the conclusion that if I don't do this now, I may never get the chance. I could also die in a car crash tomorrow so I said to myself months ago "stuff it."

Edited by Prohibiting on Friday 25th November 10:09

[Zoon]

gregs1959 said:

In a dilemma. Would like to buy a nice car. Do I spend £25,000 on one or do I put it down on a BTL.

Lots of properties around for £75,000. Rental income say £450.00 month. Repayments I expect are less than £200.00.

Leaves minimum £250.00 surplus. £50.00 month for tax man. £200.00 to finance a car.

How does that sound ????

Mark.

Interest only I assume?
How do you pay the capital back?

[NickCQ]

LeoSayer said:

Your sums don't include expenses for running the BTL eg. maintenance.

And no allowance for voids or rental income dropping.

Plus the letting fees, which will probably go up now that agents are banned from charging tenants directly.

[gregs1959]

Your right however experience tells me that tenants certainly in
my houses are usually long term.

I don't pay agents fees as I manage them all my self.

[Doofus]

gregs1959 said:

Your right however experience tells me that tenants certainly in
my houses are usually long term.

Does it.

You have more than one btl already, apparently, but you have done sime incredibly broad fag packet numbers which don't take accout of insurance or maintenance, seemingly guess at a repayment number, and approximate a tax bill.

If you're already an expert, then why are you asking us? Leverage the properties you already have, buy several of the 'loads' of £75k properties available, run them all (with no costs other than mortgages) for a year or two, and then buy the car for cash

I smell a very large rat.

[Timmy40]

Buy a mobile home, that way you get the flat and the car!

[FidoGoRetroGo]

gregs1959 said:

In a dilemma. Would like to buy a nice car. Do I spend £25,000 on one or do I put it down on a BTL.

Lots of properties around for £75,000. Rental income say £450.00 month. Repayments I expect are less than £200.00.

Leaves minimum £250.00 surplus. £50.00 month for tax man. £200.00 to finance a car.

How does that sound ????

Mark.

Simplistic at best. A couple of months with no tenants and then an unexpected expense like a new boiler and that's goodbye to every penny of your expected profit.

The government is out hunting for landlords these days, and in my opinion the ship has sailed. Buy a nice car.

[Sheepshanks]

gregs1959 said:

... experience tells me that tenants certainly in
my houses are usually long term.

I don't pay agents fees as I manage them all my self.

As you're already into BTL then your original question is most odd.

Edited by Sheepshanks on Saturday 26th November 20:30

[cslwannabe]

Wish I'd bough a CSL instead of my BTL. With the latest changes such as not being able to offset mortgage interest I would think very carefully about taking the BTL plunge.

[DonkeyApple]

Timmy40 said:

Buy a mobile home, that way you get the flat and the car!

Tenants might bh a bit when you go for a Sunday morning join though?

[ringram]

£25k into SIPP or similar and use the tax credit to buy the car.
Net cost of car = Zero and your retirement will thank you.

[red_slr]

ringram said:

£25k into SIPP or similar and use the tax credit to buy the car.
Net cost of car = Zero and your retirement will thank you.

Explain that one to me...

[sidicks]

ringram said:

£25k into SIPP or similar and use the tax credit to buy the car.
Net cost of car = Zero and your retirement will thank you.

WTF?

[liam1986]

sidicks said:

ringram said:

£25k into SIPP or similar and use the tax credit to buy the car.
Net cost of car = Zero and your retirement will thank you.

WTF?

We'Re not all millionaires rich

How do I get a free car? What's a sipp