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  • Investing in property

    Hi there. Does anyone have any experience with property etc. I'm planning getting somewhere soon, letting it out then using rent to pay of mortgage. any of u guys done this, any tips would be useful.

  • #2
    Re: Investing in property

    my advice - don't yet! from the looks of things the housing market has a long way to fall.

    I keep having to check under the bed to make sure the negative equity monster isn't hiding under it....
    “It's not worth doing something unless you were doing something that someone, somewhere, would much rather you weren't doing.”

    Terry Pratchett

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    • #3
      Re: Investing in property

      Not a good time to think about "buy-to-let". The recent demise of Bradford & Bingley was because they agreed far too many mortgages on this basis.

      One thing though..you talk as if this would be your first property; buy-to-let usually refers to second or subsequent properties which are bought at a significantly higher mortgage interest rate, purely for investment purposes.

      If you are thinking about buying a property, living there yourself, and simply renting out the spare bedrooms, then that is a different ball-
      game, as certain tax reliefs may be available.

      Your proposed lender will advise you on this, but Sir D is right..property is not a sound investment at the moment..sit tight till it starts to turn.
      Don't Stop Believing

      http://youtube.com/watch?v=rnT7nYbCSvM

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      • #4
        Re: Investing in property

        newbie, have you been asleep in some cave for the last 6 months??
        We are the music makers, We are the dreamers of dreams and God damn we are that good

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        • #5
          Re: Investing in property

          I've been living at home for a couple of years with family and have significant savings. Developers have built far to many houses and are now desparate to sell as no one is buying. I've seen 3 bed new builds for 130k, which in 20 years when mortgage could be paid off could easily be 250k. This will be my first property. Im gonna rent it out and use that to pay of mortgage. In a year or so I may be getting another mortgage with my partner. I could wait another 6 months but there are bargains out there now

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          • #6
            Re: Investing in property

            Originally posted by newby82 View Post
            This will be my first property. Im gonna rent it out and use that to pay of mortgage. In a year or so I may be getting another mortgage with my partner. I could wait another 6 months but there are bargains out there now
            The rental market is saturated at present. If you are unable to find a (suitable) tenant, you are still personally liable for every monthly mortgage payment, even if the property is unoccupied.

            As for taking out a second mortgage...based on what? This type of "entrepeneurism" is responsible, along with lenders blatant stupidity, for the current global financial crisis.

            Best of luck. Fleeg.
            Don't Stop Believing

            http://youtube.com/watch?v=rnT7nYbCSvM

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            • #7
              Re: Investing in property

              Originally posted by newby82 View Post
              Hi there. Does anyone have any experience with property etc.
              Yup, a lifetimes. No loans, all paid for, but I'll not be drawing any more income from it until April 2009 at the earliest, and I've never considered it to be a short term i.e. less than 5 year investment.

              Jeff

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              • #8
                Re: Investing in property

                newbie said:
                I've seen 3 bed new builds for 130k, which in 20 years when mortgage could be paid off could easily be 250k
                workout how much you'l end up paying and 'cos it will be close to 250k anyway, also a house 130k at the moment will be worth alot more than 250k in 20 years time, anflation alone could take it to that value
                We are the music makers, We are the dreamers of dreams and God damn we are that good

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                • #9
                  Re: Investing in property

                  I admire your confidence Newbie, but as others have said, I wouldn't at the moment. I think the market's still got some way to fall.

                  If you've got cash, then put it on the money market, short-term. I understand there are some good rates out there.

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                  • #10
                    Re: Investing in property

                    In case you hadn't noticed the banks are in a bit of trouble at the moment - it looks like the government has just put £50 billion into four major high street banks. It is difficult for established, profitable businesses to get credit at the moment, but trying to get a loan to buy into an asset class that is falling at the fastest rate ever is exceptionally difficult.

                    The sums for buy to let don't add up now, and haven't done for some time. Keep your cash as cash, but spread it about if you have over £50k.

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