General (main property discussion here) - buy to let or buy to sell?

Hi guys,

How do you determine your new property is going to buy-to-let or buy-to-sell?

I'd say its all about buying below market value , market conditions and rental yield.

When prices are about to fall, or are falling its generally best to offload(ie buy to sell) the property assuming its not an amazing yielder(ie much higher rent than mortgage cost with little to no management).

when markets are good to booming, keeping hold of property is key, its about holding as much asset value as possible coping with cashflow and refinancing as soon as there's equity re-investing. Its knowing when to slow down and stop / cope with negative cashflows / cope with time and managment of tenants/maintance thats important when markets turn. holding a high geared portfolio with break even or negative cashflow can be dangerous if this can't be rectified or if there aren't enough reserves to cope with this situation for some time.

credit score and ability to obtain mortgages is very important.

I've recently hooked up with a company that helps people out that have over commited on gearing - who have manily bought low yielding property and who want to consolidate their equity position and sell without having to pay CGT tax.

regards andrew Peers - andrewpfs@aol.com

All depends on what reason your buying for are you buying for "rental income" in which case you don't sell or are you "buying to sell" and make money in which case you sell. simple really hopefully if you pick option one you eventually get both income and growth.

Alex oakhill Mortgage Services Ltd 08000 19 22 55

Yes i agree, every property is different.some are bought to rent from day one, others to do up and sell on fast, i am finding first time buyers trying to buy them of me before we have done anything to them. others we have just rent out until the cows come home . we always keep those little gold mines,

Yes i agree, every property is different.some are bought to rent from day one, others to do up and sell on fast, i am finding first time buyers trying to buy them of me before we have done anything to them. others we have just rent out until the cows come home . we always keep those little gold mines,

couldn't agree more dave. always keep the little gold mines!

tom