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

socrates

soulsaver wrote: »

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?

I am glad you edited that!

Decadent_Fool

I personally avoid flats as there's been way too many built, and these developments have borne the brunt of the crash. As for rents, I can only speak from experience and say that mine haven't dropped, and I have no voids.

As has been said above, there are just so many variables to consider, one persons experiene may mean sweet fa to your own situation. Look at how much rents are for similar properties, sound out EA's (as potential tenant, not as a potneital landlord), and do the maths.

Good luck, whatever

Geenie

I would not touch a 1 or 2 bed flat at all as they are the worse hit and a glut means difficult to rent. Loads to rent around my area, but what people are looking for is family sized homes with about 3 bedrooms. I know, because I am having viewings for a property at the moment, and have been overwhelmed by the interest.

Read this item from the Times today as it confirms what I am saying. http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article5904284.ece

bdl1brick

nice to hear houses, that can be proper homes, might start being built again instead of chucking up tiny badly built and designed blocks of flats aimed at the inexperienced investor that nobody really wanted to live in forever.......

Gorgeous_George

I would never buy a flat.

Find a house with a garden and if the numbers stack up, go for it. However, you need to look ten years ahead for the real benefits to start to show.

There are areas of the country where you could buy a three bedroom property for £80K or less and rent it out at £4,000 - £5,000 per year.

GG

pinkshoes

It really varies from not just town to town, but street to street.

Rents in my area have gone up a LOT, as people have been selling up, so lots of people wanting a rental property in a "nice" area.

Rents in the scummy areas have gone down, probably people who can't sell and thus want to rent their properties out.

Unless anyone knows Bedford or Northampton really well, they're not really in a position to comment. You need to do your own homework on how many rental properties there are in particular areas/streets. Do you know the area well? Have you got a decent deposit to put down? Are you planning on keeping this property for 10+ years?

1 bed flats have a limited market for rental, i.e. singles and childless couples. Most people want 2 bedrooms at least!

besonders1

The biggest danger is the changing market, I know that in my town most 1/2 flats in the last crash were 2 a penny compared to houses, as were council houses and 2 bed terraces. This changed when the property prices begun to go manic where people forgot about practicality and just being able to get onto the property ladder.

PasturesNew

Off topic a bit - but what is the current "rule of thumb" mortgage rate that a BTL investor would get? Just wondering how their maths might appear to stack up right now.

Gorgeous_George

I think a typical (new) BTL mortgage is just 5%+ with a good deposit.

Oh how I love my 1.39% interest only tracker :smug:.

It's good for my tenant too. I managed to keep the rent increase to less than the RPI.

GG

Decadent_Fool

PasturesNew wrote: »

Off topic a bit - but what is the current "rule of thumb" mortgage rate that a BTL investor would get? Just wondering how their maths might appear to stack up right now.

I got 5.03%, fixed for 5 years on a 15 year term repayment mortgage on a 63k house, less 25% deposit. I'm happy enough with the figures and knowing my outgoings for 5 years (a third of the whole mortgage term!) gives me piece of mind.