Buy to let - should we invest and are properties really renting??

leeandanna

Hi, we are in the process of considering buying a 2nd home as a buy to let, we have viewed a few 1 and 2 bedroom flats that fit the bill but we are looking for some facts about the number of properties that are being rented in specific areas, namely Bedford and Northampton. The last thing we want to to is buy a place only to have it sitting empty along with hundreds of others on estate agents books.
What we really want to know is in these towns, how many similar properties are actually getting rented out and how quickly.
We have thought about contacting the estate agents and letting agents but are assuming that they will all say the same thing "yeah we can rent that for you really easily, we've got people queuing up for this type of property" as they will be wanting their commission!!!
Is there a website that shows these kind of stats?
Any help would be appreciated
Thanks,
Lee & Anna

AverageJoe_4

there is a website that shows sold prices in any given area - cant remember it though but I am not sure about rental successes..

You could phone up an agent as a prospective tenant and ask a few questions, then get your O/half to phone a little later as a prospective landlord and see if the two answers match up.

Look on rightmove.com and see what prices are being advertised in your area. At least you know what has NOT been accepted as a price.

Are you getting a B2Let mortgage or a self cert?

penguine

leeandanna wrote: »

We have thought about contacting the estate agents and letting agents but are assuming that they will all say the same thing "yeah we can rent that for you really easily, we've got people queuing up for this type of property" as they will be wanting their commission!!!

Don't they only get their commission if they find you a tenant?

I have heard that many EAs are now turning away prospective landlords as they have too many properties on their books, due to people not being able to sell so renting out their homes instead. And I would have thought 1 and 2 bedroom flats are two a penny, there have been far too many of these built the past few years.

Unless you want to throw some money away, I wouldn't think this is a sensible investment at the moment. We've just entered a recession and property prices are likely to fall for some time to come.

besonders1

If your're buying a second home as an investment this can be risky as no one knows what the results of the falling market could leave you with. Unless you are buying an expensive sought after Victorian flat, I could see you being in competition with many other landlords that have the same idea, plus you could end up with the problem DSS tenants that have a reputation of smashing up the flat just to be spiteful.

theartfullodger

The only way to get the answer (I'm not being funny, it's true) is to use a Crystal Ball: And the thing about a Crystal Ball - not much Crystal, but an awful lot of ***ls...

(I'm a Landlord, 4 properties, **** **ows what the economy / rental market will do over the next few years. If you're happy to gamble and have spare cash to live on/pay the mortgages for a couple of years, great: Otherwise, walk away right now would be my advice)

Good luck whatever you decide!

Artful

silvercar

plus you could end up with the problem DSS tenants that have a reputation of smashing up the flat just to be spiteful

Private tenants are equally capable of smashing up a flat.

In these difficult times, a DSS tenant may be in a better position to keep up with their rental payments.

Entertainer

House prices are falling at their fastest rate on record.

The economy is in the deepest crisis since the 1930's depression.

There is a glut of rental properties as BTL landlords desperately try to cover up their insolvency, leading to depressed rents in many areas (rents are falling in my area).

You are an amateur landlord who I'm guessing has not rented property before.

What you need to look at, if you still haven't been put off, is the likely rental yield that you will achieve on your new investment. Factor in void periods, management costs and maintenance. I would recommend you aim for a gross yield of 9%. Look in your local paper and take the lowest rent for your chosen type of property and see what figure you come up with.

Property will be a good investment again but not yet.

poppysarah

My local big landlord is having trouble. Been told to sell a few by the bank apparently. He's got two empties near me - of course he could lower his rent - but he doesn't seem to want to do that either.

bdl1brick

Good stuff is renting but it has to be priced right, there are still a lot of landlord/agents who are not dropping prices when they should be. If you are stuck on a 85% fixed rate mortgage at the moment you are probably gonna have to take a hit on the rent. Also with BTL rates as they are you will need a big deposit to make a profit or even get a mortgage.

I've only bought BTL places if it was somewhere I would be happy to live in myself, keep the place in great condition and up to date/modern and chances are you will get nice tenants fairly easily. Don't get greedy with the rent and leave the place empty waiting for more.

As someone said before victorian conversions/houses are always in demand more than modern boxes in a big block, just be careful of building condition.

Good agents in the local area will always give you useful advice on best places to rent and what current demand is for, maybe go to rental only agents if you are worried about them trying to flog you something they can't sell!

Zelie

One way to find out if there is a glut of rentals is to go to EAs and pose as prospective tenants. Ask to view properties similar to the one you are thinking of purchasing and ideally in the same area. If they say they don't have any of that size or in the general area then it might be worth buying. If they give you a sheaf of paper and invite you to pick a few then run as far and as fast as your legs will take you.

And bear in mind the excellent advice given by others on this thread. Now can be a very precarious time for BTL landlords.

soulsaver

MMM Lots of advice... Do your research yourself in your area, go to estate agents posing as prospective tenants (as above post) for your proposed type of let. Take details. Ask which are available...as you'll 'be interested in the next month ...or so'. See if they say: '...these won't be available in a month... they'll be let' Go back next week and ask for the new list. Check if the ones you pick are still available. Go back a week later and do the same. Pick a different clerk, see if they are let.
Do the same at different agents, you'll look credible, it's what people do when there looking for a new rental.
Then you'll know. Then let us know;)
Should you invest? Matter of opinion, if you can get a bargain to hedge against further drops... maybe. If you take the long view.. maybe. depends also where you think interest rates & inflation will go in the medium term?