@ 25/09/07 – 12:49:25
Are there any property experts out there who are still confident in bricks and mortar?
Every day we seem to read about another "buy to let" disaster. Is this marketplace dead or is it that these poor people made bad decisions (or were given bad advice) about the type of property they bought?
Would it be better to invest in UK or Overseas at the moment?
Any advice would be appreciated.
Ian.
skyesantana
bestlifecoach
Hi, thanks for the comments.
I think to be on the safe side I will be looking for a property that requires some work - if there are any left! I am quite handy and can use my time to increase the value of the property. Maybe the downside here though is that there is no rental income until complete! I suppose it will all depend on the purchase price - if you buy right you can always sell right!
I'll try and post some updates with any progress.
Regards,
Ian.
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I'm no property expert, but thought I'd reply anyway!
I think alot of the BTL disasters you hear about are due to people borrowing way beyond their means! Just because the bank will lend you 5x your salary, doesn't mean you can afford to pay it back, but sadly alot of people can't see past the potential profit, so don't realise this!!
If it's a long-term investment and you're not borrowing more than 3x your salary, preferably have a 20% deposit to put down, and could potentially afford interest payments IF rates went up to 12% (doubt they will, but best to be safe), then go for it!! If you don't have all the above, then do your calculations carefully.
Properties abroad always come with other risks and complications, but don't know enough about the markets abroad to comment.