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Considering a buy to let, what do I need to know ??
jeanettethree
Posts: 51 Forumite
We are considering buying a property as a buy to let, we wouldnt actively have gone down this route but the property is next door to us, and a very good investment, at a good price, with great potential, we have already got a mortgage offer, and we have agreed a price with the seller, (the house is not on the market its just been left empty for a year and I asked him if he would be willing to sell to us, which he has agreed) but as I have never dealt with anything like this before, I havent got a clue how it works, (please dont jump down my throat for even complantating it when we have no knowledge but Im just asking for some advice please)
myself and my husband are both working and wondered how things work, Tax wise etc ? and what other things we need to know ??
Thanks
myself and my husband are both working and wondered how things work, Tax wise etc ? and what other things we need to know ??
Thanks
I hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !
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Comments
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Umm, in what way is it a very good investment? How much would it rent out for and what does it cost?No reliance should be placed on the above! Absolutely none, do you hear?0
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You need to know that you will be a Landlord and that you have statutory duties.
How do you fancy managing a property, for the benefit of your tenants?
Warning ..... I'm a peri-menopausal axe-wielding maniac
0 -
A good long term tenant is the holy grail of BTL.
Can you get a mortgage? Do you have a deposit? Can you raise money from your existing home?
Do the figures stack up. What work does the property need? Can you do it or will you have to pay someone?
Bear in mind living next door to your tenants might seem like a great idea but it could be a right PITA too0 -
Umm, in what way is it a very good investment? How much would it rent out for and what does it cost?
because its worth alot more than he wants for it ? dont ask me why, maybe hes won the lottery and doesnt need the cash, :rotfl:similar properties on the same street rent for £500 a month, the purchase price is £60,000 we do have £20,000 to put down as a depositI hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !0 -
poppysarah wrote: »A good long term tenant is the holy grail of BTL.
Can you get a mortgage? Do you have a deposit? Can you raise money from your existing home?
Do the figures stack up. What work does the property need? Can you do it or will you have to pay someone?
Bear in mind living next door to your tenants might seem like a great idea but it could be a right PITA too
yes we have got a mortgage set up, and yes we have £20,000 deposit, the property really only needs a new kitchen, and bathroom, and decorating throughout and carpeting, its in a good state of repair. we have already got quotes for the work and they are within our budget,
and yes I also understand the bit about living next door but thats something I can cope with,I hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !0 -
Debt_Free_Chick wrote: »You need to know that you will be a Landlord and that you have statutory duties.
How do you fancy managing a property, for the benefit of your tenants?
yes I also know that, but Im asking for some advice I have never been involved with buy to let before so I need answers,
everyone has to start somewhere...I hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !0 -
Don't confuse BTL with property developing. Does it really need a new bathroom/kitchen?
If it neds them then does it also need a rewire and a new boiler?0 -
Ok
From the work you are talking about you must be talking about £5-6k.
Along with arrangement fees, solicitors costs, contingency fund probably another £2.5k
Lets say £67.5k all in.
At £500 a month rent the deal stacks up.
You will have certain commitments
Gas Safety Certificate - which are soon to be renamed (£40-60 lasts one year)
EPC - Energy Performance Certificate (£50 - lasts for 10 years)
You will need to employ a Letting Agent normally between 5-10% of rent depending on service provided- they will also sort out the deposit which needs to go into a TDS - tenancy deposit scheme (legal requirement)
There are several other things not as important - which the LA will advise you upon.
The whole deal rests upon valuations as well - you may feel its a bargain at £60k but it may get valued for less.
Good luck!0 -
poppysarah wrote: »Don't confuse BTL with property developing. Does it really need a new bathroom/kitchen?
If it neds them then does it also need a rewire and a new boiler?
yes it does need a new kitchen/bathroom, it has been lived in for the past 10 years by a single man.... need I say more
no it doesnt need a new boiler, recently had a new one, and had the electrics looked at and it doesnt need a rewire,
and what do you mean dont confuse a BTL with property developing I dont understand what you mean....I hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !0 -
Ok
From the work you are talking about you must be talking about £5-6k.
Along with arrangement fees, solicitors costs, contingency fund probably another £2.5k
Lets say £67.5k all in.
At £500 a month rent the deal stacks up.
You will have certain commitments
Gas Safety Certificate - which are soon to be renamed (£40-60 lasts one year)
EPC - Energy Performance Certificate (£50 - lasts for 10 years)
You will need to employ a Letting Agent normally between 5-10% of rent depending on service provided- they will also sort out the deposit which needs to go into a TDS - tenancy deposit scheme (legal requirement)
There are several other things not as important - which the LA will advise you upon.
The whole deal rests upon valuations as well - you may feel its a bargain at £60k but it may get valued for less.
Good luck!
Thank you ! some good points there, a similar property on our street recently sold for £99,000 so I dont think it will be valued less than say £67.000, with the small amount of work thats needed, also its the end property on the street, not overlooked and has a good size garden, where the other doesnt, We are looking at it for a long term investment,
How will it affect us tax wise though ? will it be run as a business ??I hate the name child support and can't say it without a nasty feeling in my tummy. ...:mad:
Dont shoot me down I am as PWC and a NRPP so I am at both ends of the stick and the CSA stinks !0
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