Buy to Let Northern Ireland....

flossey1970

I'm a first time buyer.  But I am in 2 minds as to either buy for myself or buy-to-let.  Reasons for the buy-to-let is that I don't have a pension and do not trust them and believe that property is a more secure investment.  Where I am is currently rent free for the next few years, so buy-to-let also looks more attractive just now.

Also I intend to buy one house to let out and then see how it goes.  If its successful (i.e. the tenants pay their rent ;D), i will more than likley buy more houses to let out.  So should i just start off with an ordinary mortgage, or a buy-to-let mortage ???

I have gone on the various mortgage websites and keyed in my details but no mortgages have been suggested.  Can anybody recommend [glow=red,2,300]a good financial adviser[/glow] who could answer uneducated financial questions.  I live in Derry but travel alot throughout Northern Ireland for my job.

Does anybody have first hand experience or know of anyone who has gone the buy-to-let route :-/

IvanOpinion

I'm a first time buyer.  But I am in 2 minds as to either buy for myself or buy-to-let.  Reasons for the buy-to-let is that I don't have a pension and do not trust them and believe that property is a more secure investment.  Where I am is currently rent free for the next few years, so buy-to-let also looks more attractive just now.

Also I intend to buy one house to let out and then see how it goes.  If its successful (i.e. the tenants pay their rent ;D), i will more than likley buy more houses to let out.  So should i just start off with an ordinary mortgage, or a buy-to-let mortage ???

I have gone on the various mortgage websites and keyed in my details but no mortgages have been suggested.  Can anybody recommend [glow=red,2,300]a good financial adviser[/glow] who could answer uneducated financial questions.  I live in Derry but travel alot throughout Northern Ireland for my job.

Does anybody have first hand experience or know of anyone who has gone the buy-to-let route :-/

There are many things to consider but some things I have heard friends talking about are :
- tax payments when selling the house - I have no idea how this works but, since it is not the main premises there may be tax issues.
- one friend said they had to set up a separate independent company that owned the house. Whether this was through choice or preference I don't know
- Possible changes to legislation related to second properties. This is 'pie in the sky' at the minute but the government are keen to free up some housing stock and have been talking about changes to tax laws.
- Insurance ... one friend was giving off about how much it cost. However he was also giving off about the maintenance that he just had to pay out for - which he said would take over 2 years of rent to pay back.
- There may be long spells where the property is empty and no rent coming in .. you will still have to pay the mortgage.
- Invonvenience ... If maintenance is needed then the occupier will expect it to be carried out immediately - not wait until it is convenient for you to get round and do it.

Property is a great investment but don't go into it with rose coloured glasses on. One of my friends owns 5 properties and he is now talking of dumping them all because they are taking up so much of his time - he is the one that has recently had some costly maintenance. Overall he is well up on his original investment but that does not factor in many lost weekends, late nights, listening to people moaning on the phone etc. etc.

Ivan

mikey9863

i know of one couple who recently bought their second home to let out. they got it valued before letting it out.

as a rental income it would bring them in approx 250 per month just enough to pay the mortgage

as a resale it would sell at a approx £15,000 profit they would pay no capital gains because it is under the £16400 level of profit but if they sell and do the same again they would have to start paying taxes because the taxman would consider them a business.

flossey1970

I posted this thread back in Dec 2004 - just a quick reminder if anyone knows where I would get:

Good Mortgage advice on buying a Buy To Let.
Good Buy To Let house insurance.
Any personal or second party stories of Buy To Let experiences.

I will definately be buying a Buy To Let property as the house prices in Derry are going through the roof at the minute. And most new developments look as though they are being bought up by private landlords to let out (at really high rents). Looking to good not to join in!!

ellorarose

I currently rent out a second property. I have been doing this for 2 years now and find that it difficult enough. You need to be prepared for hassle and repairs at the tenants pace. I have spent time without tenants and that is two sets of mortgage to meet that month. However on the plus side my investment has gone up by £30,000 in 2 years.
Things to consider when going ahead. Rates, insurance and general maintainace. Make sure your rent covers this.
A good insurance company which specialises in landlords and buy to let is JBI Insurance Brokers. 01189810222. I saved £70 on my renewal quote.
Things to remember with insurance - you pay a premium for Dhss, students etc. Professional people are the cheapest insurance( they also have a tendancy to have shorter leases and go and buy a house for themselves- more hassle). When buying insurance you will be pressured towards paying for legal protection - it covers you if your tenants want to sue you ( faulty staircase - broken leg ) but not if you want to have them evicted or whatever.
Best advice is make sure that you would want to live in your property and know your area.

blondie21

i have bought a few properties in the past 5 years....and have no trouble letting them out.in both cases the rent more than covered the property loan.both properties have more than doubled in value.as i dont have a pension i will be depending on this for my old age...lol.if i could talk my other half into buying a few more i could possibly give up work and take it easy....
go for it you wont lose.

aidsy

is there any1 doing btl in bangor area...... just wondering


aidsy....

ginger_nuts

I have rented a flat to a 47 year old guy ,the DHSS is to pay the rent .
He had been renting a house but said he wanted a smaller place to live in .
Now here is my problem I called at the flat yesterday and the tennant has not moved in but the ecomomy 7 heating was on ,ok only 4 days but some of my furniture is missing ,a coffee table ,picture and a CD rack . I phoned the tennant to ask how he was getting on in the flat ( he didnt know I was phoning from his the flat ) and he told me had just fallen asleep after hanging a picture .I now have 2 problems ,1 he has removed my property his deposit will cover that but I suspect he may be using the flat as a postal address therefore the flat may not being lived in he has signed a 12 month lease . I know its only 4 days and I may be wrong but This is my first tennant so all help would be welcome .

aidsy

Hi ginger nuts
U say u where "phoning from his the flat" did u let ur self in using ur set of keys and that’s how u knew that items where missing?

if u let urself in without permission from the tennant you would be playing a dangrous game , why not post a letter recorded delivery asking your tennant to cantact you then arrange a meeting at the flat.

If it was me id be happy the rent coming in every month i.e. no voids

cheers aidsy

rover25

Am thinking of renting my house out but would love to hear from other diy landlords/ladies.
How do you collect rent each month- is it d/d.. what happens if the tenants account doesnt pay- (have no £ in it),
How much extra is the house insurance and how much does a solicitor cost to draw up a contract and does it have to be done by a solicitor? Do most people pay the rates for the tenants or do they include that in the rent?
Many thanks everybody

leftieM

I'm a tenant and have been many times.
In each instance the rent was paid by standing order. Rates were included in the rent.