rayman740 Posted July 27, 2015 Share Posted July 27, 2015 I've now saved enough to buy a house (not my main residence, nice area) without a mortgage that has already been split into two substantial apartments. I'm getting 0.5% at the bank with my savings but the expected net yield is 4.2% after all costs including taxes are taken into account. However with the expected raise in interest rates should I go ahead? Thx Quote Link to comment Share on other sites More sharing options...
Venger Posted July 27, 2015 Share Posted July 27, 2015 Yes. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted July 27, 2015 Share Posted July 27, 2015 Yes. +4.2 Quote Link to comment Share on other sites More sharing options...
little fish Posted July 27, 2015 Share Posted July 27, 2015 Yes. Definitely. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted July 27, 2015 Share Posted July 27, 2015 +4.2 Fat chance, -4.2% at best, after the boiler breaks and the roof caves in! Quote Link to comment Share on other sites More sharing options...
Crash In The Attic Posted July 27, 2015 Share Posted July 27, 2015 Definitely. If you raise the rent, the yield will be 7%. Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted July 27, 2015 Share Posted July 27, 2015 Or wait and buy it for half-price post HPC and the yield will be 8.4% Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted July 27, 2015 Share Posted July 27, 2015 (edited) If you are only getting 0.5% on a huge pile of cash then you must be either: 1) lazy, or 2) terrible at managing your own personal finances Neither option bodes well for entering amateur landlordism. Edited July 27, 2015 by ScrewsNutsandBolts Quote Link to comment Share on other sites More sharing options...
erat_forte Posted July 27, 2015 Share Posted July 27, 2015 If you don't want to use the cash, and you don't want to use the house, why not give them to someone who does? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 27, 2015 Share Posted July 27, 2015 My god, the crash really is happening, the idiot EAs reallty have got nothing better to do. I hope most of them loose their jobs/shirts/tubs of hair gel. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted July 27, 2015 Share Posted July 27, 2015 +4.2 Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted July 27, 2015 Share Posted July 27, 2015 This is a massive yes from me. Act now. Don't miss the boat. Quote Link to comment Share on other sites More sharing options...
GinAndPlatonic Posted July 27, 2015 Share Posted July 27, 2015 If you are only getting 0.5% on a huge pile of cash then you must be either: 1) lazy, or 2) terrible at managing your own personal finances Neither option bodes well for entering amateur landlordism. or a troll Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted July 27, 2015 Share Posted July 27, 2015 Yep safer than a punt at Ascot. Quote Link to comment Share on other sites More sharing options...
Le Grande Fromage Posted July 27, 2015 Share Posted July 27, 2015 Can you do property maintenance? if no you will get a guy in like me on £100.00 per day to fix your problems........and you will have problems...... Quote Link to comment Share on other sites More sharing options...
norseraider Posted July 28, 2015 Share Posted July 28, 2015 Presumably it's a nice area under a bridge? Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted July 28, 2015 Share Posted July 28, 2015 Ignore the naysayers Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted July 28, 2015 Share Posted July 28, 2015 Embrace the haters. They will probably living in your property.... Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted July 29, 2015 Share Posted July 29, 2015 Ignore the naysayers Quote Link to comment Share on other sites More sharing options...
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