BTL as a pension?

[sweetheart]

Dh and I are thinking of buying a BTL property as an investment for our future pension provision. I just wondered if anyone is doing this or had any thoughts on it as an idea? We're releasing equity from our property for the deposit and will start on a intrest only basis but if the invcome is ok we may switch to a capital repayment so that we are clearing down some of the mortgage too.

I have 2 btl s at moment. I think you should think carefully about the cost of releasing equity versus the potential gains but as long as you''re looking to the long term you should be ok. It's not easy money in the short term in my experience, though. In the current climate it's a reasonably sound investment still, but not without risks.

Deposit is 40% on a buy to let & rent to mortgage ratio has to be a 125% for it to be self financing. Be very careful. You are not always guaranteed rents and repairs can eat up any money you make. The way we did it was to let out our former home after we moved on. 8 years later its still fine but we've learnt slot of hard lessons along the way. No.1 is make sure you can cover the mortgage if your tenant doesn't pay.