To finance or not?

[gensetsteve]

The comment about a 6% return is a short term view. Over time as rents increase, the return on investment will increase. Then there is the capital appreciation so the comparison with a 33% margin generating (but depreciating) business asset is a bit like comparing apples with pears.

 

Well managed buy to lets can generate significant returns in the medium/long term for relatively little effort (if you stay out of the student market).

 

A good way to look at it. My 33% is the margin I aim for on used plant resale so often over night. Buy it for £6000 sell it for 10 . If I tie my money up long term I dont have the 6k. The little pot I have will be used to buy another small holding as they are currently building new hutches around me which will house life style people.

[ArthurBottlesworth]

Read book by farmer who bought his farm in hungry thirties

 

He always changed his equipment when it was a few years old - people said why do you change your tractors combines so often?

Answer - because in another recession I can last ten years without buying equipment

 

Me

I change vehicles when repair cost per month > monthly finance cost on replacement

[njc110381]

Mine needs a bit of work doing to it. New shocks, full service, tyres... I'll have to spend over a grand on a two grand truck to get it tidy. I don't really want to

[jnoon]

Spend a few quid on a full service and drive on u till cleared funds permit, my hilux is on 153,000 doesn't bother me in the slightest

[njc110381]

I think that could be the most sensible move. I'm just having a bit of a shiny new truck moment. It's a fairly regular thing!

 

I was talking to my dad about it earlier and he quite rightly pointed out that the truck I have now isn't worth a lot, so I may as well just drive it until it dies then buy another.