Interest rates on the rise

[Uncle C]

Exacamundo.

You cannot get a better investment than property, mate of mine who is on less than £30,000 just managed to get a £200,000 mortgage to buy a 2 bed flat rents out one room, and already he has had the flat valued at £230,000 within 8 months and away he goes on the property ladder to somewhere bigger and better.

If he can do that, why didn't he buy something better in the first place? All he has achieved now is blowing £25,000 in fees, stamp duty and removals.

 

[cjd]

don't forget 40% tax on profits on 2nd properties

Don,t forget the 5% pa relief , so after 12 years 60% relief. plus you can make ? ? £8000 before being eligible for tax.

 

[Deleted User X18H]

my fixed term ends at the end of May.
Time to get sorted quick i think.

you've got a Mortgage

 

[withdeanwombat]

Didn't I read on teletext that mortgage lenders are pulling fixed deals from their mortgage lists?

 

[Yorkie]

Didn't I read on teletext that mortgage lenders are pulling fixed deals from their mortgage lists?

I don't know. Did you?

 

[sid]

Juts heard interest are going up again.

not on this post zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz!

 

[Gazwag]

don't forget 40% tax on profits on 2nd properties

Only if you are a higher rate tax payer

 

[Rougvie]

If he can do that, why didn't he buy something better in the first place? All he has achieved now is blowing £25,000 in fees, stamp duty and removals.

The maximum he could get all in was £200,000, he has just sold for £245,000, like you say he has had fees, but has made a profit of £20,000 in just over seven months.

Can you name me ANY investment of £200,000 that would have a 10% return in such a short space of time for ZERO risk ?

Not to mention that his mortgage was more or less paid by his flatmate during the time.

 

[Marshy]

you've got a Mortgage

A small one, and i could pay it off if i wanted, but like the cash in the bank

 

[Rangdo]

Sorry to rain on some people's parade but theres not going to be any crash. The economic conditions are completely different now. Interest rates may be rising but that wasn't the singe factor causing the crash last time. They're still way below what they were then and on top of this demand currently massively outstrips supply which will help to maintain high prices.

I think the best that anyone waiting for a crash can hope for is a slight drop in prices of a few percent but I reckon they'll just level out and start rising again when the rates start going down again.

 

[Uncle C]

The maximum he could get all in was £200,000, he has just sold for £245,000, like you say he has had fees, but has made a profit of £20,000 in just over seven months.

Can you name me ANY investment of £200,000 that would have a 10% return in such a short space of time for ZERO risk ?

Not to mention that his mortgage was more or less paid by his flatmate during the time.

Ok, so after expenses he now has £220,000 to reinvest (£200k mortgage plus his £20k profit), but cant even afford the house he has just sold.

Where's the entrepreneurial skill in that.

 

[nail-Z]

Not to mention that his mortgage was more or less paid by his flatmate during the time.

A £200,000 mortgage must costs around £1200 a month or more. Just how much rent was he charging?