Buy To Let. Is it worth it?

[andy w]

I don't like how BTL landlords have priced out first time buyers out of the housing market (although the real blame lies with successive governments who haven't made sure enough housing has been built to meet domestic demand and the increase in net migration) but with virtually no return on money in the bank and no sign of that changing I am considering jumping on the Buy To Let bandwagon.
Any opinions?

 

[John Marwood]

I don't like how BTL landlords have priced out first time buyers out of the housing market (although the real blame lies with successive governments who haven't made sure enough housing has been built to meet domestic demand and the increase in net migration) but with virtually no return on money in the bank and no sign of that changing I am considering jumping on the Buy To Let bandwagon.
Any opinions?

That's really useful information

I shall now buy Krugerrands

 

[tek-monkey]

If you get into btl you are part of the problem, if you don't you're ignoring a very easy revenue stream from those that don't have money to those that do.

 

[That-Crazy-Rat-Lady]

I don't like how BTL landlords have priced out first time buyers out of the housing market

First time buyers have priced themselves out.
They go to uni - spend thousands on Jager bombs - come out, get a job then go 'Oh I am an adult and wish to purchase a house!'
They wonder how they struggle to save when they have a car on fiance, the latest mobile phone and eat out all the time.
I was a first time buyer at 24.
Don't feel sorry for them!

As far as BTL goes - money makes money - for a BTL mortgage you need a 25% deposit.

So for a deposit on a £110,000 house / flat you need £27,500.

If you have the money great - you get to make more money! Congratulations!

 

[John Marwood]

First time buyers have priced themselves out.
They go to uni - spend thousands on Jager bombs - come out, get a job then go 'Oh I am an adult and wish to purchase a house!'
They wonder how they struggle to save when they have a car on fiance, the latest mobile phone and eat out all the time.
I was a first time buyer at 24.
Don't feel sorry for them!

As far as BTL goes - money makes money - for a BTL mortgage you need a 25% deposit.

So for a deposit on a £110,000 house / flat you need £27,500.

If you have the money great - you get to make more money! Congratulations!

I'd vote for you even if you weren't a hottie

 

[Gramaisc]

Could you launder a student loan into a house deposit?

 

[andy w]

If you get into btl you are part of the problem, if you don't you're ignoring a very easy revenue stream from those that don't have money to those that do.

Yes very similar to many people I knew who bought their council houses back in the 80's and 90's. They were aware that selling off the social housing without replacing them was wrong but seen the discounts on offer that made the proposition a no brainer.

 

[That-Crazy-Rat-Lady]

Could you launder a student loan into a house deposit?

Yes, yes you can!

 

[Sir BoD]

First time buyers have priced themselves out.
They go to uni - spend thousands on Jager bombs - come out, get a job then go 'Oh I am an adult and wish to purchase a house!'
They wonder how they struggle to save when they have a car on fiance, the latest mobile phone and eat out all the time.
I was a first time buyer at 24.
Don't feel sorry for them!

As far as BTL goes - money makes money - for a BTL mortgage you need a 25% deposit.

So for a deposit on a £110,000 house / flat you need £27,500.

If you have the money great - you get to make more money! Congratulations!

My dad bought his first, and only house, with a 'deposit' of £50 when he was 24. It was brand new. He was a low paid factory worker and was bought with his income only. I'll ask my daughter and all of her mates to do the same with the £4 an hour they currently get working. They are not the sole reason people struggle to buy these days but they play a significant part. BTL are an utter menace and signify everything that Thatcher government stood for.

 

[kyoto49]

BTL can be a nightmare, The idea of getting nice tenants who respect your house and pay the rent on time is often some sort of piipe-dream in reality. Sorry!! I'm sure everyone knows a freind who's a model tenant, but the two poeple I know who own houses to rent, neither were BTL, they were bought to live in but circumstances subsequeently changed, have pages and pages of bad tenant stories. Both friends use reputable agencies, do all required due diligence, and both have horror stories to tell. Non-rent payers is clearly a problem, tenants who move in and then barter down the rent, tenants who literally wreck the place, tenants who demand ridiculous things done in the house. All of that before you even factor in the time it takes to organise things, the cost of routine maintenance, the regular redecoration and new carpets when tenants change...........

Be warned!!!!!

 

[Gramaisc]

BTL is not for the fainthearted or the clueless. Agencies aren't always that bothered about the 'right' tenants, they'll get their money somehow.

I only 'look after' one rented house now, after the student house market collapse due to the abandonment of the Poly.

The overriding concern is to get the 'right tenant' - nothing else matters if you get that wrong.

The current tenant is great - I must pop round and see if she's still there.....

BTLs are a money fountain and a money pit. If people are paying you £500+ a month, they will (rightfully) expect things to be good.

A lot of the 'income' will just pass straight through to somebody else - the asset value will remain, of course, and your children can squander that on your behalf at some future date.

 

[John Marwood]

My dad bought his first, and only house, with a 'deposit' of £50 when he was 24. It was brand new. He was a low paid factory worker and was bought with his income only. I'll ask my daughter and all of her mates to do the same with the £4 an hour they currently get working. They are not the sole reason people struggle to buy these days but they play a significant part. BTL are an utter menace and signify everything that Thatcher government stood for.

 

[That-Crazy-Rat-Lady]

My dad bought his first, and only house, with a 'deposit' of £50 when he was 24. It was brand new. He was a low paid factory worker and was bought with his income only. I'll ask my daughter and all of her mates to do the same with the £4 an hour they currently get working.

I'm not talking back in '64
I was 24 two years ago!
I am the generation 'let down the government' and 'priced out by BTL'
I call bullshit!!

 

[kyoto49]

I'm not talking back in '64
I was 24 two years ago!
I am the generation 'let down the government' and 'priced out by BTL'
I call bullshit!!

No one in Stafford is priced out of buying a house are they :/. Houses are cheap here. If Stafford is too expensive, then Stoke has loads of cheap houses. If you want a house enough then it's pretty easy round here to get one even on minimum wage.

Edit, I am unsure if your post is tongue in cheek or you are genuinely saying that BTL has priced people out of the local market?? If so then I disagree!!

 

[That-Crazy-Rat-Lady]

No one in Stafford is priced out of buying a house are they :/. Houses are cheap here. If Stafford is too expensive, then Stoke has loads of cheap houses. If you want a house enough then it's pretty easy round here to get one even on minimum wage.

Edit, I am unsure if your post is tongue in cheek or you are genuinely saying that BTL has priced people out of the local market?? If so then I disagree!!

Hee hee !

No I'm 100% genuine!

I agree with you completely!

The reason first type buyers cant afford houses if because they don't know how to save!

 

[tek-monkey]

No one in Stafford is priced out of buying a house are they :/. Houses are cheap here. If Stafford is too expensive, then Stoke has loads of cheap houses. If you want a house enough then it's pretty easy round here to get one even on minimum wage.

Edit, I am unsure if your post is tongue in cheek or you are genuinely saying that BTL has priced people out of the local market?? If so then I disagree!!

120k house needs a minimum 30k salary, which most under 30s in Stafford are not earning.

 

[That-Crazy-Rat-Lady]

120k house needs a minimum 30k salary, which most under 30s in Stafford are not earning.

I agree - but being in a couple or buying with a friend makes it much more accessible.

 

[kyoto49]

120k house needs a minimum 30k salary, which most under 30s in Stafford are not earning.

So buy a cheaper property!!!

Acc to rightmove one can buy:
a flat on Greensome Lane for £48K,
a flat on Holmcroft Road for £50K,
2 bed flat on hawkesmoor Road for £65K
etc etc

Various shared ownership options from £49K

Cheapest house in Stafford £85K.

All of those option will have a significantly cheaper mortgage than the price of renting a place nowadays.

There is nothing stopping first time buyers affording these properties, even those on minimum wage. Of course, as @That-Crazy-Rat-Lady you'd have to save some money as a deposit and this seems beyond todays 'youff' who want everything NOW!

 

[John Marwood]

So buy a cheaper property!!!

Acc to rightmove one can buy:
a flat on Greensome Lane for £48K,
a flat on Holmcroft Road for £50K,
2 bed flat on hawkesmoor Road for £65K
etc etc

Various shared ownership options from £49K

Cheapest house in Stafford £85K.

All of those option will have a significantly cheaper mortgage than the price of renting a place nowadays.

There is nothing stopping first time buyers affording these properties, even those on minimum wage. Of course, as @That-Crazy-Rat-Lady you'd have to save some money as a deposit and this seems beyond todays 'youff' who want everything NOW!

Zero hours
Gig economy
The Conservatives

3 reasons right there

 

[Carole]

Perhaps I'm missing something or being obtuse but I don't understand why someone who owns a buy to let is pricing first time buyers out of the market.

I owned my first house aged 22 (yonks ago)

At the timeI was working full time including Saturdays as well as working 4 nights a week in a restaurant until gone midnight so that I could pay my mortgage and run a car. I went without quite a lot to have that tiny terraced house.
Fast forward to when I met my husband, I had by then been working for BA who paid me fairly well and my other half had a well paid job.

He got that well paid job by working hard at school and uni and grafting.

We found that by a combination of selling our properties and moving in together that we had savings/spare income.

We bought two properties, one locally and one abroad.

We rent out both.

What I would like to ask is this....

1) if we hadn't bought those properties, would it have meant that someone else else would have been able to get on the housing ladder?
2) for those of us that chose to work hard and have savings....if we don't buy into property...what exactly should we do with our money to invest for our future?


To answer @andy w and the original question about buy to let.

We have always used an agent to look after our property.
We bought ours as an investment for the future but because of changes in the way it's all taxed it's not as financially lucrative as it used to be.
We like to keep our properties in tip top condition....I personally wouldn't take money from someone for rent unless I'd be prepared to stay there myself.

Be prepared for maintenance, expenses and inconvenient timing when things don't go to plan.

A week before our wedding (2 months ago) the shower leaked at our house in Wildwood, going through the ceiling into the kitchen. The agents dealt with it all but it still involved time and cost.

Then on my honeymoon in Barbados I was dealing with a boiler problem in Spain.

It's not all plain sailing but it's not something that we regret doing.