Spending Review 2015

[EDOldie]

Loz Wrote:

Hi Loz,

Won?t quote your message or this will just get too long, but.

Property is a long term investment, and without working out the figures in minutiae, buy to let should be a good investment for anyone. If you look at rents and capital values over a ten year period both have increased way beyond anyone?s imagination. There?s no reason to say that this trend should not continue either with interest rates set to stay low, possibly even go lower, more QE even? If you buy a property, or have bought one in the last five years, ok things might not be as good now but it still looks like a one way bet.

If you get an interest only mortgage after 20/25 years the capital will seem tiny in comparison to the value and as rents rise you can put some of this aside to pay off the capital. Hence the free house analogy.

If you put that money in the bank, well forget it, you won?t be able to buy a property in 20-25 years time.

I?m not a buy to let investor and I don?t want to see rents go up, but they do, as does the cost of buying a property. The tax on property is an obvious one for the government. It?s cheap to collect and difficult to avoid. And the residential property market appears to be the only area of growth in the economy at the moment. If other parts of the economy starts to grow in real terms what will happen then?

If investors buy any investment badly they won?t see a great return and may even lose money. However, I think in the buy to let market, as long as you stay with the cheaper end of the market in any given location, it is difficult to go wrong.

And as it?s almost Christmas, one last thought. They?re not building any more houses, oh yes they are, oh no they?re not, oh yes they are, oh no they?re not, oh yes they are, oh no they?re not, (continues for rest of thread).