Recommended reading on buy to let

molit

I am likely to have to move in the next 6-12 months. Rather than sell my place, I am lucking maybe into renting my current place out, and buying where I'm moving to. I want to let myself know what I'm getting into, and basically learn a bit about btl. I've seen a few people mentione that they have books, which ones are recommended?

Cheers
M

mewbie_2

molit wrote: »

I've seen a few people mentione that they have books, which ones are recommended?/quote]

Well done for thinking of reading up before doing it. It certainly put me off the idea.

I have the following...
Buying to Rent - Nick Rampley-Sturgeon - published 2002.
Buy to Let Bible - Ajay Ahuja - published 2002, reprinted 2003.

But I can save you time and trouble by the one quote that sticks in my mind.

Rent x 100 should = cost of property.

The rest of the stuff is just dreary, looking after tenants, how to make money from DHSS, and a dozen other things that point to it being a Rigsby (Rising Damp) style existence rather than some glamorous get rich quick investment. Without capital gains it goes back to being what letting always was, a time consuming, aggravating way to make a very average living.

guppy

mewbie wrote: »

Without capital gains it goes back to being what letting always was, a time consuming, aggravating way to make a very average living.

I think that is the most insightful comment I have ever read on these boards!

Unfortunately I don't think many amateur BTL LLs havecome to realise this...yet.

Tassotti

mewbie wrote: »

Rent x 100 should = cost of property.

I think mewbie's book must be 15 years old.

I don't think molits' intention is to become the next biggest BTL entrepreneur there ever was.

More likely, cannot sell the house and has to rent it out.

I wouldn't buy a book, but employ an agent for at least six months, then research all the property forums (LLZ, SP and the like) and then DIY.

First of all, see if it is financially viable

Tass

Trollfever

I have:

Get Rich Quick. Become a BTL millionaire in 6 months.

Sadly it forgets to mention borrowing costs and that gearing does not work in a falling market.

Tassotti

Troll, I don't think that applies here, as molit is not looking to buy a new property to rent it out. It is his/her own residence.

However, the figures are important.

What are the figures ...

ie current property value
mortgage payments
Rent achievable
Price of new property?

Tass

neas

i heard inside track are quite good. 100% success guarnteed... ask any of their customers.Oh wait... that would be valid 9 months ago :P

Tassotti

neas wrote: »

i heard inside track are quite good. 100% success guarnteed... ask any of their customers.Oh wait... that would be valid 9 months ago :P

Your post is a waste of time!!!

We are not talking about someone who wants to enter the BTL market for investment, but necessity!!!!!!

ManAtHome

Biggest problem is likely to be needing some equity in both properties - lenders will be looking to offer their best rates for lowest (to them) risk, so low loan-to-values. May not a problem if you have enough readies for a deposit on the new place.

molit

wow, quite a feqw comments. Thanks for all of the advice

To give a few more facts and figures, I believe the market rental for my property if about 750 a month - based on speaking to the agent this morning (they claimed up to 800 - assuming some EA inflation of tru value).
I would be looking at about 100k of borrowing with a value of ~160 in the house at the moment housese were selling for 180 last year, so maybe a bit pessimistic, but its best that way I guess? ( I think the sums add up in terms of return to borrowing?)

As previous posters have mentioned, I have no intention of trying to become a btl millionaire, but I dont want to sell in the current market. I luckily have a lump sum I can use to fund a purchase in the new area, and believe I can get a mortgage to cover the rest - (I itnend to release about 10k out of this house though if needs be). I am also happy to accept slightly lower returns in the short term on the equity in the current house to avoid the stress of being in a chain in this climate.

Anyone have any additional thoughts?