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

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 !

Monday, January 14, 2008 05:09PM Report Comment
 

2. Landedgentry said...

No not too late at all, if your in it for the long haul LOL

Monday, January 14, 2008 05:38PM Report Comment
 

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

Monday, January 14, 2008 05:41PM Report Comment
 

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)

Monday, January 14, 2008 06:17PM Report Comment
 

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

Monday, January 14, 2008 06:21PM Report Comment
 

6. quiet guy said...

My advice:

Don't walk away from a BTL deal.

RUN!!

Monday, January 14, 2008 07:37PM Report Comment
 

7. Ash4781 said...

Yes

Monday, January 14, 2008 07:38PM Report Comment
 

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!

Monday, January 14, 2008 07:41PM Report Comment
 

9. barb777 said...

Forget BTL buy gold

Monday, January 14, 2008 08:18PM Report Comment
 

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.

Monday, January 14, 2008 09:12PM Report Comment
 

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.

Monday, January 14, 2008 09:57PM Report Comment
 

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!!!

Monday, January 14, 2008 10:10PM Report Comment
 

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