thinking of a buy to let

RomansProperties

I have just seen 2 properties in Armley Leeds sell at Auction for £50k and £55k
They are 2 bed back to back properties
You would get about £450PCM for private people or £122 Per week Local Housing Allowance.
Which would work out returns of 10.8% or 12.68%
A 30% deposit on this would leave a mortgage of £35,000
Monthly repayments at 5% would be £145.
Therefore before other expenses a profit of around £300PCM
Although rates will go up I am sure.

Its with prices like they are now that some properties become sensible investments.
Hope this helps you

paulfaz

bargainbasement wrote: »

Hello, currently outright home owner no mortgage. Thinking of buying a second house to rent out but I haven't got a clue what kind of mortgage we need to look into getting.

Any information or links greatly received!

You admit yourself you haven't got a clue so my advice is do some serious research before you commit to this.

bargainbasement

Many thanks everyone for your valuable thoughts. There is alot to consider we have been mortgage free for a couple of years now and tbh the thoughts of getting into debt with a mortgage frightens me somewhat. But at the moment I am getting nothing from savings, pension is probably not worth anything and I'd just like to think I was putting my money into something where I am going to get a return. Considered a holiday home abroad but that is even more daunting............:eek:

dunstonh

I the last 10 years, a monkey could make money with a mortgaged buy to let. Now its the professional landlords that can really only make money.

tbh the thoughts of getting into debt with a mortgage frightens me somewhat.

A mortgaged buy to let is a high risk transaction. The risk is reflected in the consequences if it goes wrong. You could lose your main residence potentially. A decent researched property and scenario and enough money in the bank to cover repairs and sustained periods of no income significantly reduce that risk.

stuarthouse

Hi BB

I guess the aim is buy low now wait say 10+ yrs sell and have a profit


If i may

1. Hoose prices may yet still drop

2. It will get you into debt which is secured against your home

3. In those months where no tenant is occupyin you will need to foot the mortgage

4. Tenants can squat for months n moths without paying rent & it can take a while to get out sqautters legally.

5. Some people just dont like th burden the worry of having a 2nd prop to rent out.



If you can find a young family with baby, toddlers, infants, who cant buy their own houe and you can gurantee them a place for x years
then it is some security.

If the family happen to be on income support or similar, they will get HB from local council, this is a gurantee of rent.
Some lenders may have a stipulation of not renting to peple on HB, thouhg i havent checked this.