Buy to let market

[buhi]

Do you think the buy to let market is going to recover?

[foxysandies]

I think so - it can only get better

[jafarcakes]

They say the 'mini-boom' in property value is coming to an end - so yes, rental yields should increase.
In case you happen to be interested in investing in prime Central London, try my friend's real estate company at www.palacegate.com.

[richieuk]

I'll stay where I am I reckon!

[bob-skinner]

I think with the prices that homes are to buy many people will have no option but to rent. Therefore buying to let (if you can afford it) is a great idea. But as ever you have to have the money to make the money.

[Jollyhippo]

Buying to Let is easier than most people think. If you know how to structure deals you can borrow against valuation as oppose to purchase price therefore if you buy at 15% below market value you can actually obtain 100% finance, using an 85% mortgage.

Call 01483 243605 to speak to specialist consultant or visit

www.jollyhipppo.com

Thanks

[www.build4future.co.uk]

And of course, some lenders are doing buy-to-let investment mortgages at 90% now, making it even easier.

[url]www.build4future.co.uk[/]

Originally Posted by Jollyhippo

Buying to Let is easier than most people think. If you know how to structure deals you can borrow against valuation as oppose to purchase price therefore if you buy at 15% below market value you can actually obtain 100% finance, using an 85% mortgage.

Call 01483 243605 to speak to specialist consultant or visit

www.jollyhipppo.com

Thanks

[jafarcakes]

er, bit of a spam alert here, I guess, but hey, maybe it's helpful.

[BabylonBusinessFinance]

I can confirm what been said above as accurate. I am a buy-to-let investor as well as a commercial finance broker.

The slow down in activity has made the but to let lenders to bring out aggressive products to win market share. 85% loan to value is the norm but there are several lenders offering 90% loan to value mortgages. i-e you require a 10% deposit.

On the other hand, if one can negotiate a 15% discount or more from the vendor, then it is possible to get a buy-to-let mortgage based on market value instead of purchase price. For example:

Open market value of property - £100,000
Agreed purchase price (with a 15% discount) - £85,000
Mortgage amount - £85,000
Deposit required - £0

Just in case if anyone wonder, people do sell houses at large discounts for various reasons such as repossessions, chain breaking up, move abroad, divorce etc. We have property investor clients who actually target these types of vendors specifically.

If anyone interested in knowing how it is done, please feel free to contact me on 020 7016 9775 or visit our web site www.babylonbusinessfinance.com.

Joel

[NIC356]

I think the buy to let market has a future, the fundamentals won't disappear anytime soon. Those that include a real lack of housing for a fast growing population and a very strong economy which attracts a large amount of immigration.

My only caution would be to make sure you get your numbers right if you are buying buy to let property, so if the worst did happen you know your property's income will cover your mortgage and some. I use the 'Buy to Let Investment Property Calculator' from www.makedigital.com and look for properties that i can spend a small amount on refurbishing to help me build some strong margin into any purchase I make.

I'm a bit of a fan of Ajay Ahuja's theory of buy to let investment which focuses on an income stream not captial gain.