ricky2tricky4city
Tom Huddlestone
It appears a straightforward plan. BUT on the basis that you are physically not going to have to do anything to make it work, it would beg the question why isn't everyone doing this?.
Well, they were. You gear yourself up by borrowing money (other peoples) and with a bit of luck you ended up with 5+ properties.
Thing was there was a massive safety net and that was the capital gain, it felt nailed on. You could have a disaster, a sh*t tenant, squatters, left empty for 2yrs and you'd still come out smelling of roses because of the upward curve of house prices.
That's not there now and on a strictly investment angle should never be relied on. In fact if it swings the other way you will be glad you were not relying on it.
Money is still extremely cheap to borrow (and looks like rates may stay low for a while), but look at a 50yr chart and you will see there is only one way they can go (and that is if they only return to the mean).
Of course this is in addition to what other posters have mentioned regarding taxes,costs and being a landlord. And remember property is a very illiquid investment.
Well, they were. You gear yourself up by borrowing money (other peoples) and with a bit of luck you ended up with 5+ properties.
Thing was there was a massive safety net and that was the capital gain, it felt nailed on. You could have a disaster, a sh*t tenant, squatters, left empty for 2yrs and you'd still come out smelling of roses because of the upward curve of house prices.
That's not there now and on a strictly investment angle should never be relied on. In fact if it swings the other way you will be glad you were not relying on it.
Money is still extremely cheap to borrow (and looks like rates may stay low for a while), but look at a 50yr chart and you will see there is only one way they can go (and that is if they only return to the mean).
Of course this is in addition to what other posters have mentioned regarding taxes,costs and being a landlord. And remember property is a very illiquid investment.