Monday, January 14, 2008

“BTL should be avoided”

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 (1127 views)
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12 thoughts on ““BTL should be avoided”

  • 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 !

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

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  • 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

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  • 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)

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  • I will show you how, with just £10k to invest, you could be collecting rents on £500k worth of properties.
    Regards,
    A Spiv

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  • My advice:

    Don’t walk away from a BTL deal.

    RUN!!

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  • Yes

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  • Yogi's Friend says:

    Now then stop being so negative – what about a Baked Potato Stall? just the job on these cold winter nights!

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  • Forget BTL buy gold

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  • it_is_going_with_a_bang says:

    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.

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  • @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.

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  • He could have in 2002, and remortgaged and remortgaged again till he had an empire

    But guess what – those days are long gone – Hurrrahh!!!

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