UK Buy to Let - Is it worth it?

Johnboy, there is no obvious value, I think it takes a very experienced property investor to spot the opportunities at this stage!.

In the meantime I will indeed look at alternative investments, my goal is to generate a regular income and grow this over time to supplement my existing income and eventually replace it for retirement. Too many products I've seen focus on regular savings where you have to wait an 'pray' for a return after several years with high charges as opposed to investments that will give a regular return to supplement income.

Killian.
 
Killiaan

A few pointers on the initial question:
* you could reduce the mortgage amounts by getting a mortgage from a UK lender. You will get a lower rate but have to jump through more hoops and you have to be relatively higher income etc to satisfy their criteria for lending to non-UK residents.
* I would be surprised if you actually got £600 rent for a one bed costing £120k in Liverpool. 6% gross yields exist very rarely in the UK market today.
* I was in Liverpool last week and after a recent drop in values, there is a buzz back in the market which could drive capital values upwards again, albeit modestly.
* I have seen properties bought in 2003 at £260 per sq ft sold again in 2005 @ £200 per sq ft in fire sales, so beware of the cost per sq ft you are being asked to pay.
* There is better value in the UK today in lower priced property in seocndayr towns and cities, where you would buy 2 beds for £120k and not see a propertional drop in rental income, so the yields would be higher.
Good luck
Propman
 
Hi Killian,

Just be patient and maintain an open mind. You do not have to be an experienced property investor to work out if projected rental income will at least cover your funding and other costs. I would agree with Propman in that there is probably better value to be had in secondary locations in the UK but this is all relative - the recent property boom has substantially reduced the chance of finding a 'cheap' property.

You did mention that you were looking to generate a regular income - in that case neither of these properties will satisfy your requirements. Check out the best-buys section, or better still why not consider paying for some advice?

Johnboy
 
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