Singing Pig

Going by your post, I would do lots and lots more reading before thinking about investing!

Looking at possible 4 or 5 houses-what deposit, total costs would that be aproximately? Too many variables. It depends on how much the property is worth, what deposit you want to put in, any repairs required, etc.... You won't need to put in a deposit if you source out a BMV property and do a NMD deal.

Once the first one is bought how do I fund the next and the next and so on! Keep reading the BMV section and you won't need any cash to fund the next one.

 I think it would be 15% of the price as a deposit for a start or is that worse now with the credit crunch tightening?  85% LTV mortgages are still available.

Ofcourse BMV would be good. Definately! If you purchase a property for £70k which it's MV is £100k and take out a 75% LTV mortgage (£75k mortgage) with positive cashflow locked in a 5 year fix to ride out the blips (hopefully). However if the market in 5 years time is still poor and say your property is worth £90k, you could take out a 85% LTV mortgage which will give you £76.5k which pays off the 1st mortgage, lock this in for a long term also and hopefully in 5 years time your property will be worth much more. Off course it all depends on your individual strategy, current market conditions and what levels of risk your willing to take!

Hope this helps.

Agree with last post.

 

Be careful at the moment, great bargains to be had and it can work great in this market BUT you need to know what your doing and to be aware of all the mistakes that can be made.  In this market it can be costly.

Most downturns have 3-4 years of falls before prices start rising.  So it is veesable that in about 7 years your properties will be back at todays values.  I guess it depends how much BMV you can get.  Personally I would invest elsewhere till the market bottoms out, that way your money works harder.

 

Is there anyone who knows how to make money on a buy to let in a downturn if they buy at todays prices or say 20-30% BMV? 

klee:

Going by your post, I would do lots and lots more reading before thinking about investing!

Looking at possible 4 or 5 houses-what deposit, total costs would that be aproximately? Too many variables. It depends on how much the property is worth, what deposit you want to put in, any repairs required, etc.... You won't need to put in a deposit if you source out a BMV property and do a NMD deal.

Once the first one is bought how do I fund the next and the next and so on! Keep reading the BMV section and you won't need any cash to fund the next one.

 I think it would be 15% of the price as a deposit for a start or is that worse now with the credit crunch tightening?  85% LTV mortgages are still available.

Ofcourse BMV would be good. Definately! If you purchase a property for £70k which it's MV is £100k and take out a 75% LTV mortgage (£75k mortgage) with positive cashflow locked in a 5 year fix to ride out the blips (hopefully). However if the market in 5 years time is still poor and say your property is worth £90k, you could take out a 85% LTV mortgage which will give you £76.5k which pays off the 1st mortgage, lock this in for a long term also and hopefully in 5 years time your property will be worth much more. Off course it all depends on your individual strategy, current market conditions and what levels of risk your willing to take!

Hope this helps.

Excellent answer-My heads spinning!! I will re-read slowly but wow this actually still can be done in a depressed market-realy impressive-cheers for this

coggy:

Agree with last post.

 

Be careful at the moment, great bargains to be had and it can work great in this market BUT you need to know what your doing and to be aware of all the mistakes that can be made.  In this market it can be costly.

Can u give any examples for the mistakes that people have made?

brit1234:

Most downturns have 3-4 years of falls before prices start rising.  So it is veesable that in about 7 years your properties will be back at todays values.  I guess it depends how much BMV you can get.  Personally I would invest elsewhere till the market bottoms out, that way your money works harder.

 

Is there anyone who knows how to make money on a buy to let in a downturn if they buy at todays prices or say 20-30% BMV? 

Yes till the market bottoms out-thats exactly what I want to do -3-4 years blast I though maybe 2 years but I think u are right-this is going to be a nasty correction-40% i think-but the key is the USA-with Obama coming in confidence could be restored-the whole world is tied to the US even though noone will admit it-Even Australia will feel this cold wind-the commodity boom will protect to a point but interest rates are VERY HIGH there 9.6% or so mortgage rate-

Very frustrating but I might have to wait it out-I have invested in Land on Russell Iand Australia-SEE:

http://www.russellisland.com.au/landforsale.htm

but I might have to sell as my family needs a house! Also while I wait I am thinking of restoring canal boats as the prices dont depreciate at this point but they dont increase either.

40%?  is that a joke?  you seriously think that your average semi at £200k is going to change hands for £120k?  really?  i tell you what ... i would take that bet ... oh, i already am!  BTW, the aussie market is a totally different micro-market, with just 4 banks operating a cartel (commonwealth, westpac, ANZ, st george) ... hence the high rates.  honestly, i do wonder about some folk ... 40% falls ..... maybe for a handful of forced sellers, but they would not represent the market.  but, keep the nonsense crash theories coming ... BMV clients listen, panic, sell ...... ;-)