The aim is to make the best use of my money in the long term.
2007-11-15 23:07:26 · 9 answers · asked by Chico 3 in Business & Finance ➔ Renting & Real Estate
buy right now!! if you can.
2007-11-15 23:11:09 · answer #1 · answered by 27ysq 4 · 1⤊ 0⤋
It depends on your situation, your type and amount of income, your current tax rate, and the LOCAL market where you are, or the market of where you are thinking of investing in.
If you buy a house to live in, then you have to have enough income to pay the costs of living there, take the tax advantages of owning. If you buy a house to rent then you need to see what the cashflow, both pre and post tax would be. Let the numbers determine which is the better option.
I prefer rental houses because I do not need to show enough income to pay the payments and I am letting somebody else go to work, earn a paycheck, pay taxs, AND pay for my house to build my equity. Letting others build YOUR equity is always better then paying for that equity yourself.
But you also need to understand that real estate is a LOCAL market and if you live in a area that has no population growth, no new job creation, high tax rates, etc. that investing in other cities may create a better cashflow or return on your investment.
I would suggest that you MOVE to the area where you think you will have the best return on your investment, learn the local market, and build a team to help you identify, manage, and build a portfolio of properties.
Most people live where they do because that is where they were born or where they work, and NOT because that is where they WANT to be, where they can get the best investments, or where they want to retire. Decide where you would be happiest at and then decide where you can get the best investmetents and understand that this may be 2 different places.
2007-11-16 02:51:16 · answer #2 · answered by Jerrold J 3 · 0⤊ 0⤋
Paying rent is wasted money, so if you can afford it buy for yourself.
In my opinion buy to let is more risky now than in previous years - now the market is slowing down, other people (like you) may be in a position to buy rather than rent. There are also rather a lot of buy to let properties availble since it's been such a popular form of investment in recent years. You may not rent out a property as easily, or for as much as you might think. In my area rental prices have come down a lot in the past few months.
Finally, if you decide to sell a property that isn't your main residence, you have to pay tax on any profit, so if you ever did need to sell, the taxman will take an uncomfortably large cut.
2007-11-16 06:15:50 · answer #3 · answered by heleni 4 · 0⤊ 0⤋
It's actually a better time to buy now. Unfortunately, we always speak in terms of the seller. So when the market improves, that really means home prices are going to go up.
So, you buy a home to live in now, make it a small home and not very fancy. This is going to be your first rental property. After you've had it a year or so buy a property that is more suited for you personally. Then rent out the first home.
2007-11-15 23:55:44 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Don't know much about this business but I've seen from my experience it is better to buy a house for oneself then maybe it could be rented out, "to let" or even sold later for a better price when rates go up.
2007-11-18 16:25:41 · answer #5 · answered by Luke 1 · 0⤊ 0⤋
i used to have 3 buy to lets 1 house and 2 flats , the house rented fine but because every one sees the profit from it the markets fallen out on flats as there are so Meany of them empty ..... buy abroad
2007-11-15 23:12:09 · answer #6 · answered by Anonymous · 1⤊ 0⤋
start buying cheap houses in good location..a roof over your head is not a problem right now..then buy and rent your new house...
2007-11-15 23:12:24 · answer #7 · answered by tea 2 · 1⤊ 0⤋
i would buy to let then if prices rise you can always sell for a profit
2007-11-15 23:11:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
buy to let
2007-11-15 23:23:37 · answer #9 · answered by Anonymous · 1⤊ 0⤋