midlandslad
Member
- Location
- Midlands
This looks too good to be true. What is the rate they have quoted you in % terms?
Demand
- Thread starter Hilly
- Start date
This looks too good to be true. What is the rate they have quoted you in % terms?
midlandslad
Member
- Location
- Midlands
We will see a temporary jump in inflation but if this is sustained the base rate will raise and borrowing will become more expensive. The B of E have a clear objective to keep inflation at 2% and will use the base rate to control this.
Hmm, I think you need to go back in time a tiny bit more.
I bought a house cheaper in 2016 7 doors down from an identical one I bought in 2006. In other words I had 10 years of deflation but fortunately had time to wait for it to recover.
It could happen again, buy a house now and prices crash. I put in an offer for one a month ago but the vendor wanted 10% more than any other house sold on that estate.
It's all very well quoting stats, but they aren't always right!
I wouldn't do it if your not sure at less than 1.3%........
mwj
Member
- Location
- Illinois USA
The 1980's in this country rocked the farmers. Land prices that were reduced greatly, nearly halved there net worth. The bankers called loans because there was not enough assets to cover the loan amounts. It was a bloodbath in the farming community.
That’s not including any capital repayment remember and the rate I’m not sure of because the boss had the quote. We were discussing cashflow and what it would be spent on. I’ll ask on Monday.
tullah
Member
- Location
- Linconshire
That's a pretty good, 1.27% annual interest charge.
May I ask how much setting up charge if any?
You can’t buy a house in our immediate village area.
Rural villages are the new penthouses.
Rural villages are the new penthouses.
they were not printing money to fix problems in 2006
im 2008 they learnt this new trick
that said any house bought in 2006 around here is worth a LOT more today than it was in 2006 or 2016
midlandslad
Member
- Location
- Midlands
That is exceptionally low. Check your figures
no brainier if you can service comfortably
its sub 2% - if you can’t make thst kind of return from an asset I would give up !
late 2010.
Bank man reckoned I was one of a very small handful of approvals he had been able to clear that year - cuz we had a 60% deposit
I'd have gone 6 months sooner, but the previous deal involved a family dispute we couldn't unravel.
It's a good rate, but do remember depreciation on buildings, and repair budget.
Buying them is only step one.
buildings / land / property do not deprecate in reality
Steevo
Member
- Location
- Gloucestershire
Plenty of BTL houses would probably be on slim margins now, but as you say the capital appreciation vs. inflation would cover the cost of capital without too much issue.
tullah
Member
- Location
- Linconshire
All v well investing in BTL but exiting is no fun with CGT.
I get a house with my job, so will get principle residence CGT relief on my BTL when I sell it.
don’t you have to actually live in the property to get relief ?
Not according to professional advice I had a while ago when I bought it. I have to live on site as part of the job, or until HMRC close that loophole.