Considering a buy to let, what do I need to know ??

GDB2222

jeanettethree wrote: »

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:

In that case, why don't you just buy it and sell it on?

jeanettethree

GDB2222 wrote: »

In that case, why don't you just buy it and sell it on?

because in the current climate, its obviously not going to fetch the right money, so I would rather keep it for a few years until the market picks up ? and see how things go, if the renting side doesnt work out, Ill consider selling it then,

jeanettethree

franklee wrote: »

I would normally say run a mile but not in this case. Your figures stack up very nicely. I'd suggest that you use an agent to fully manage the property first time round and use the time to learn the ropes. Join a landlord's association and read up all you can.

I do think you are on the right lines putting a simple new kitchen and bathroom in, it will help attract and keep better tenants. The number of times I've seen manky properties empty for months on end when far less than the lost rent would have brought them up to scratch. Apart from that make sure the property is clean throughout and a fresh lick of paint and gardens tidy and easy to maintain.

Thankyou, you have made me feel so much more positive about it all now, Im a big worrier and tend to go over things to much and thats what everyone else has really said to us its a good opportunity we should not pass by,
A friend of ours is a letting agent and she said she will make sure we get a good tenant and oversee things for us,

and yes I think the new kitchen/bathroom is definatley needed, it will give the property a fresh new clean look that it needs, as well as being completely re decorated and carpeted throughout,

themanbearpig

jeanettethree wrote: »

because in the current climate, its obviously not going to fetch the right money, so I would rather keep it for a few years until the market picks up? and see how things go, if the renting side doesnt work out, Ill consider selling it then,

So it isn't worth 100k then? :rolleyes:
I just seems like you found out that they have reduced the price to the current market value, and you now think its a bargain because you knew how much it was worth at the peak of the bubble.

Prices took 10 years to reach the previous peak in the last crash, why do you think we'll be back to 2007 levels in a few year?

GDB2222

jeanettethree wrote: »

because in the current climate, its obviously not going to fetch the right money, so I would rather keep it for a few years until the market picks up ? and see how things go, if the renting side doesnt work out, Ill consider selling it then,

I do end up wondering whether you are right about the valuation. Either it's an absolute bargain at the price it's being offered at, or it isn't. Your comment about not fetching the right money at the moment: in what way does that apply to this house in particular?

Personally, I'd be very put off having a BTL next door to me. There is a certain coldness in the relationship between landlord and tenant, whereas I want to have a warm relationship (or at least a normal one) with the people next door.

GDB2222

jeanettethree wrote: »

Thankyou, you have made me feel so much more positive about it all now, Im a big worrier and tend to go over things to much and thats what everyone else has really said to us its a good opportunity we should not pass by,
A friend of ours is a letting agent and she said she will make sure we get a good tenant and oversee things for us,

and yes I think the new kitchen/bathroom is definatley needed, it will give the property a fresh new clean look that it needs, as well as being completely re decorated and carpeted throughout,

I don't think you'll go too far wrong with a rental yield of 10%, provided you fix your mortgage interest rate for a long time. BTL is really a lot of work and worry, which I think you may be underestimating. Besides that, despite the Spring bounce, most commentators are expecting a further very substantial drop in house prices. So, even if it is relatively cheap now, it could be many, many years before you can get your purchase price back on this property.

Anyway, I think you have made your mind up already, so I'll just wish you luck.