Buy to let

[Sheepshanks]

drainbrain said:

BUT: the overarching opinion was that because of the volume and breadth of legislation being applied to the sector they think btl may drift more and more towards institutions-only, with the small guy being squeezed out. Not unlike the death of the one-man-band IFAs of the '90's when a growing volume of administrative compliance requirements meant joining a consortium or going out of business.

I think business generally is going that way. Not sure what's up with the Conservatives, they seem to hate small businesses.

[DonkeyApple]

Sheepshanks said:

I think business generally is going that way. Not sure what's up with the Conservatives, they seem to hate small businesses.

Actually? They are the first bunch of dicks that have realised that homes aren't businesses but homes and that if you allow unfettered speculation and investment into the residential property market then you get the problem of halting social mobility and the ultimate unrest that follows.

There are a million and one more suitable asset classes for people to pour their excess wealth and leverage into that won't be so damaging to a country.

I'm afraid that I'm of the view that the actions taken by the Conservatives to force out the most speculative punters, to tax the corporates and overseas money and to deleverage the property market is just about the only credible thing they have done.

Just look at the carnage done by Labour in removing vital lending regulation and encouraging the speculative property boom and the credit crunch that we are all still paying for.

At the end of the day, homes are for living in and high prices benefit no one at all and kill social mobility, massively increase the wealth divide and ultimately leads to social carnage.

And for all that has happened you can still go and buy another property and rent it out and achieve a yield far better than any bank account. All that's changed is that you can't gear yourself up to the nadgers and be a risk to everyone.

[jonny70]

clio007 said:

Im considering a short term BTL with the prospect of moving into in the next 2 years. Living with my parents at the moment, but a property has come up at around 11% under market value hence the appeal. The MV is around 295k for the house and I am a FTB and the property isnt on the market (I have spoken directly with the seller)

The rent will cover the mortgage plus around £200ish ontop. Just not sure if the numbers stack up if property prices fall in the SE.

Why not just move in when u buy it rather than rent it out ?

What deposit do u currently have ?
( one will need 25% deposit for a BTL and the rent will need to cover 145-155% of the mortgage payment )

[DonkeyApple]

I don't think the market is going to move away from anyone over the next couple of years and after renting it for a couple of years it'll probably need a big whacknof money spent on it to get it straight.

Also, if you're young and living with parents you can keep barrelling money every month into a deposit fund to help with reducing later mortgage rates plus you're at a time of your life when fixing where you live might hold back your career as this is the time that it changes and advances rapidly and being geographically tied might not do someone any favours.

I do believe that renting for a period after leaving home is very beneficial. It allows you to focus on your career, less pressure and responsibilities, keeps you highly flexible and also is a great learning period for what sort of property you ultimately want and where.