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First time BTL investor with 90k: cash or mortgages?

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Author Topic: First time BTL investor with 90k: cash or mortgages?  (Read 151 times)
Newbie
Posts: 2

I like property

« on: December 23, 2020, 05:18:04 PM »

Hi All,

I love properties and wherever I go Iím interested in prices and so on, but Iím new to BTL world (I sold an old flat in Italy with very high service charge last year to invest in the uk where I live and work and have family).

I read that usually investors with my budget would get 3-4 mortgages for 3-4 properties instead of buying just 1 cash.

My question is, since legislation has changed and mortgages cannot be deducted from taxes as before, and since weíre not sure that prices will steadily go up in future,  and since income but also issues would be multiplied with different properties, would be a so bad idea to start buying just what I can actually afford and rent it out?

Does anyone invested in Ipswich town centre?

Thanks and Merry Christmas
Global Moderator
Hero Member
Posts: 503

I like poetry

« Reply #1 on: December 23, 2020, 11:39:21 PM »

Personally, I wouldn't be looking to buy at the moment. The market feels toppy, the Government doesn't want to be seen as landlord-friendly, and the risk of a non-paying tenant is higher because of Covid and the state of the economy.

If really you do want to give it a go, start small. That way, if prices fall 10% next year, you've only lost ten grand or so, if your tenant stops paying the rent and you can't get them out, you're not having to scrabble round to keep covering a substantial mortgage, and if you find that being a residential landlord in the UK market isn't what you thought it would be, then you've only got one property to offload.

If, after a year or however long, things are looking rosy, you can mortgage your property at that stage and expand your empire.
Newbie
Posts: 2

I like property

« Reply #2 on: December 24, 2020, 11:10:17 PM »

Thank you for your advice, it sounds very reasonable.
I wasnít sure to start now, and I think Iíll wait until covid situation clears up and after stamp duty holidayís over , prices may go down as you said and itís just not worth it now
Global Moderator
Hero Member
Posts: 3777

I like lots of things

« Reply #3 on: December 26, 2020, 10:14:18 AM »

You see? You came here offering us only two options for your £90,000... cash or mortgages? And you got real valuable advice in return... neither. Hold tight. Hang fire. Keep your [gun]powder dry. Look before you leap. This is the wisest outcome / response to your question... now is not the time... I hope there will be a time again... but all Landlords should get ready to have their trousers pulled-down by Her Majesty's Government and be roughly shafted from behind, unwillingly, from 2021... 2022 onwards... that financial burden for furlough and all these other hair-brained schemes for giving us the false impression things were being handled well has to be paid back by some element of the population... and you can bet it ain't the airline or hospitality sectors.
« Last Edit: December 29, 2020, 11:17:54 AM by Hippogriff »
Global Moderator
Hero Member
Posts: 1066

I like property

« Reply #4 on: December 26, 2020, 11:33:32 AM »

You mean there isn't a magic money tree ?
Agree with all the advice given above.I am looking into tulip bulbs,think it could be the next big thing.
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