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mikefluk

When Buy To Let Makes Sense

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I have long been an advocate of property prices crashing and still believe they will. In this sense I have looked on bewildered at the senseless people going for buy to let at yields of 5% or less quoting capital growth as the driving force..How stupid can you be ? In my view you shouldn't be allowed a vote. The yield is so low because asset prices are so high - rents won't go up to compensate for the low yield..on the contrary House Prices will go down to compensate FOR THE LOW YIELD !!!

Why then am I putting forward a case for buy to let making sense...??

Simply because as always there are exceptions to this rule. I have been using my google search engine for high yield properties and guess what...They are out there. I stumbled across a 3 storey semi detatched in Liverpool for £130k let as 6 flats getting £19k in rent - thats 15% yield or put another way you could buy outright in 8 years from the rental income alone (after tax) To me that's a sensible buy to let and there are more out there if you search the property auctions websites.

My advice is this. Do not buy from an estate agent. Most certainly do not buy to let from an estate agent. Do your homework and buy at auctions. Don't buy straight away read up about it and find a good lawyer, surveyor and building contact and you will make money even in today's market.

I still haven't changed my mind - there will be a crash over the next couple of years and negative equity will return. If, however, you search out high yield properties it doesn't matter what happens to property prices you will prosper. Believe me they are out there ..its just that you and I don't know where to look..But the internet is changing all of that - just learn how to exploit it.

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I have long been an advocate of property prices crashing and still believe they will. In this sense I have looked on bewildered at the senseless people going for buy to let at yields of 5% or less quoting capital growth as the driving force..How stupid can you be ? In my view you shouldn't be allowed a vote. The yield is so low because asset prices are so high - rents won't go up to compensate for the low yield..on the contrary House Prices will go down to compensate FOR THE LOW YIELD !!!

Why then am I putting forward a case for buy to let making sense...??

Simply because as always there are exceptions to this rule. I have been using my google search engine for high yield properties and guess what...They are out there. I stumbled across a 3 storey semi detatched in Liverpool for £130k let as 6 flats getting £19k in rent - thats 15% yield or put another way you could buy outright in 8 years from the rental income alone (after tax) To me that's a sensible buy to let and there are more out there if you search the property auctions websites.

My advice is this. Do not buy from an estate agent. Most certainly do not buy to let from an estate agent. Do your homework and buy at auctions. Don't buy straight away read up about it and find a good lawyer, surveyor and building contact and you will make money even in today's market.

I still haven't changed my mind - there will be a crash over the next couple of years and negative equity will return. If, however, you search out high yield properties it doesn't matter what happens to property prices you will prosper. Believe me they are out there ..its just that you and I don't know where to look..But the internet is changing all of that - just learn how to exploit it.

Post a link to that?

You say that it is a 3 story semi with 6 flats? Does that not make it a HMO? And have you included all the fees and necesary safety changes required for this?

I think putting 6 people in a 3 bed semi is OVERCROWDING! Bet its in Kensington, Norris Green, Bootle, Dovecot? Would be interesting to know?

Alls I would say is that the LOCAL market will decide. The only way that people would pay £61 per week for an overcrowded house is if they are immigrants or on the 'rock 'n' roll' and the social are paying! I need some convincing of this :blink:

TB

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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