Is Having Second Home A Good Investment

[Amena1234]

It is buy to let property

[Neveracrossword]

It can be.

Your question is in the wrong category.

[newmodarmy]

Yes, you'd be the envy of your friends, familiy and neighbours... provided you buy at the right time, find the right tenants,  maintain the property and set the right level of rents, and ensure you are fully familiar with all the relevant legislation, tenants' rights, deposit schemes etc so that you follow all the right legal and admin procedures.

gulliver or PP will know - they are or have been landlords

[Hymie]

Even if the tenants are only paying sufficient rent to cover the mortgage/upkeep (and other fees incurred), the big gain after 25 years (or whatever the mortgage term is) is the value of the property.

 

Bear in mind that you will have to pay Capital Gains Tax on the gain, unless you can come up with some creative way of cheating the tax man.

[Untitled]

if you're comfortable with bleeding a working household out of their money for the privilege of living in a place you happened to buy... go for it

[davebro3]

^^^ what a jaundiced opinion of the rental sector

[douglas9401]

Jaundiced or realistic? We'll find out...later in the show.

[Untitled]

"the rental sector" lol. millions are stuck in that sector because they can't afford to buy and the main reason they can't afford to buy is because any growth in their income is eaten by exorbitant rent. 
 

rightmove estimates that renters in the UK pay 50% of their income on rent because property values have been allowed to get so high. 

[newmodarmy]

I was hoping Peter pedant or gulliver1 would give us a view from a caring capitalist landlord's point of view to balance out untitled's view of landlords.

[newmodarmy]

Property values have been allowed to get so high?

The only way to stop it is to build millions of houses (and stop illegal immigration via dinghies). Or to force up mortgage rates to reduce demand but then some may want to rent instead...

[davebro3]

Well from what I've seen residential rental properties (outside London) usually achieve about 5% pa  of their value (before expenses). I.E. A £200k house will rent for about £10k pa.

This is marginally above what could be got in a savings account, with no hassle.

A friend was renting her £220k house for £600pm. She sold it.

[piggynose]

I to was a landlord, for 19 years, i am trying to get out and sell up!!

[-SharonA-]

It's a headache!!

[nicebloke1]

I got one, on wheels. Can go and live where i like in the summer months. :0)

[davebro3]

^^^ is it on a trailer park?

https://en.wikipedia.org/wiki/Trailer_park

[davebro3]

do you pee etc. in a bucket?

[MarleneSB1955]

I guess if you bought the 2nd property with a deposit and rent covered a large chunk, if not all of the mortgage repayments, it's a pretty good deal. With approx 5% annual increase in property, you will be benefiting from a 5% increase in the total value of the property (even though your outlay for the deposit was much less). If you bought the 2nd home outright, then you could probably get a better return with a different investment.