FTB best to invest in BTL? confused!

[iclaudius]

Dear Forum members

my father-in-law has given my new wife and I 45k to buy our first home in London. That was last november. Due to our modest charity-based salaries we've been completely unable to afford a mortgage big enough to buy a flat which suits our needs in London. just can't believe how expensive it is!

We're now planning to go live in the US from 2007-2011 and wondering if in buying a property today we'd be better off not getting our first home (to rent later) but rather to carry on renting and just put his deposit into an investment property.

Very much looking for advice from the experienced members on what to do with this money. We want it to grow so when we return later we are on the housing ladder but also have even more money to buy a family home.

thanks in advance.

[Matt Churchill]

A bit of a "crystal ball" question I would say. Theoretically, buying a property now should see you with more equity in 2011.

I don't think that it really matters what sort of property you go for, whether it is a property for you to use now or a straight investment property. Even if you bought a property to live in for the next year or so, you can always rent it out when you are in the US.

if you do look for an investment property, make sure you have a good agent to look after it for you (both now and when you're abroad) and look for something which will have good demand - location, size etc. Again, talk to agents and you should get some clues from them.
HTH.

[MrShed]

I personally would agree with your thinking, and I am thinking of doing similar myself right now - still living with the parents in my case, but think I will soon buy a BTL. But, its "horses for courses" - it really does depend upon your personal circumstances, and it is very much a personal decision.

[lee2309]

Hi All,

I hate to tell you this but if you invested that into a property in London last year in November you would have benefited in a 21.5% rise in price. So far September has been the slowest rise with just under 1% in house prices.

My opinion is that if you can get a 1 bedroom for around £180k and put down £45k you should get a good BTL deal. Your rental with depend on what area you buy in London. House prices in London are still growing so in my opinion i would buy. I have just bought close to the central line. In the time my offer was accepted to now almost completion the value of the property has increased by £20k.
Your money will gow at a better rate than if you left it in the bank.

L