Monday, Jan 14, 2008
"BTL should be avoided"
ThisIsMoney: Is it too late to get into buy-to-let?
"I have £10,000 to invest and am thinking of buy-to-let, but warnings of a property crash are putting me off. Is it too late to invest in property?" what do you buy with 10k? A kennel? nooooo... of course 10k was enough to buy a two bed flat last year.... mmmm that demand has dried up now, I am afraid
Posted by confused76 @ 04:16 PM (841 views) Add Comment
12 Comments
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1. jack c said...
The maximum LTV (loan to value) at the moment for BTL mortgages is 85% therefore this person would need to find a property valued at approx £65K with a £10K deposit and approx £55K loan - absolute non starter IMHO at this juncture but give it 2-3 years and such a proposition might look a lot more viable !
2. Landedgentry said...
No not too late at all, if your in it for the long haul LOL
3. confused76 said...
Jack
do not forget the sales of city flats at inflated prices, with discounts passed under the table
I think you could have bought yourself a two bed in Liverpool or Manchester with 10 grands before the summer
4. jack c said...
Confused, you are probably correct but the market has changed dramatically in the last 6 months and the lenders are now very wary of off plan discount arrangements - If the crash comes about as we predict this guy could pick up a Liverpool flat for £10K at auction and own it outright (LOL)
5. Icarus said...
I will show you how, with just £10k to invest, you could be collecting rents on £500k worth of properties.
Regards,
A Spiv
6. quiet guy said...
My advice:
Don't walk away from a BTL deal.
RUN!!
7. Ash4781 said...
Yes
8. Yogi's Friend said...
Now then stop being so negative - what about a Baked Potato Stall? just the job on these cold winter nights!
9. barb777 said...
Forget BTL buy gold
10. it_is_going_with_a_bang said...
I find it hard to believe anyone with half a brain cell and 10k in their pocket would even ask such a question.
I would like to think it was a made up story to 'fill the pages' with the bleedin' obvious.
11. drewster said...
@it-is-going: I agree, this sounds like a made-up question. Having briefly worked in the media I can tell you that it's not uncommon to make up readers or callers when it comes to these kinds of vox-pop questions. Often they'll combine several readers' related queries into one made-up person. It's not really considered deceptive (even I don't think it is) - it's just a way of framing the question.
12. Landedgentry said...
He could have in 2002, and remortgaged and remortgaged again till he had an empire
But guess what - those days are long gone - Hurrrahh!!!