I have been told Buy to Let is a Win Win – is this true?

I have been told Buy to Let is a Win Win – is this true?

11:18 AM, 1st February 2017, About 5 years ago 21

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I’m here for some advice. As a family we are downsizing our house from £580,000 to around £300,000 and looking to invest the remaining sum in property to have some rental income. win win

I read a book about Buy to Let properties and it looks like a win win situation, you pay a small amount of interest to the bank and with the remaining rent income you can live quite comfortably while the equity continues to grow over the years. I am aware the property is not yours in the end, but you have gained money from rent and the equity.

Many people are advising against Buy to Let but can’t give me any solid reasons.

Can any of you advise me on the best thing to do with the remaining £280,000 It would be nice to have £3000-£4000 or more as a return every month

Thanks guys

Tom



Comments

by philip ellis

10:50 AM, 3rd February 2017, About 5 years ago

Reply to the comment left by "Mark Alexander" at "03/02/2017 - 08:16":

Mark,
i guess it boils down to the type of area and the quality of the surrounding housing stock.

I have developed in two quiet streets in my Victorian suburb. I pay a one-off £420.00 fee to the agents for advertising, checks and references, photographic inventory and contract. As i live round the corner, I can be very responsive to any problems...and actually enjoy the little issues that crop up.

With regards to pet damage, all houses now have reclaimed, oiled interior pine doors. They cost £50.00 each and obviously never need painting. The dogs can do what they like to them. The carpets are all new but to replace a carpet in a room costs £170.00 according to my fitter. I can live with that should i ever experience a problem.

At the end pf the day, being a landlord is still a pretty good position to be in. If someone has built up a house of cards, using rental income to repay further mortgages, then they are in a precarious position, constantly exposed to fluctuations in the market and changes in legislation. If you stay within your means and are confident that you can ride the storm, you'll be fine.


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