Buy to Let - How I made £100 @ month

meanmachine_2

Thanks for the update.

You're providing a valuable service - housing the poor.

I wouldn't want to do it for £1200 a year (I make more than that in interest).

But well done you.

Now off you get to an accountant to work out your tax bill.

whitevandriver

Perhaps my maths are different but £8,000 net capital value increase and £100 a month net on the income on top on a two year project that has taken a total of about 40 hours of my time seems not a bad deal to me.

There must be some pretty rich folks on this forum that turn their nose up on this sort of money.

Sure I had a few call outs and had to replace a boiler but I am roughly £10k up so I am quite happy.

missk_ensington

Why don't you just develop them and move on? I look to make about £30,000 a property, which although more effort is a much greater return.

You may think you have a perfect forumal, but just wait until you can't get a tenant out whose a single parent claiming benefits and disabilities, even an accelerated possesion order will not get them out becuse its against their 'human rights' they can sit in your house for years and pay no rent and you can't do anything.

meanmachine_2

whitevandriver wrote:

Sure I had a few call outs and had to replace a boiler but I am roughly £10k up so I am quite happy.

But you're not though.

CGT, moving costs, solicitors etc.

Come back and tell us how much you're left with.

Also, try it again when the market is flat as a pancake, and/or when your mortgage costs are rising.

It's not a business plan. It's a fluke.

seven-day-weekend

We gave our DSS Tenants ONE YEAR's notice and the Council still wouldn't rehouse them until we'd been to court.

ginger_nuts

I have one BTL .This was my first venture into BTL . I bought a one bed flat .I viewed it in January and completed in May 2005 .My tenant is DSS .I discovered very early that the tenant owed the DSS money and they where taking it from me ,as his rent was paid directly to me . But my tenant paid me what he owed . I paid £40,000 for the flat and it took me 2 weeks to get a tennant .I bought at the right time my flat has gone up £20,000 since I bought it .I remortgaged my house to fund this and I havent had to pay any tax YET .I would do it again if I could buy at the right price .

PabloNeruda

meanmachine wrote:

Thanks for the update.

You're providing a valuable service - housing the poor.

I wouldn't want to do it for £1200 a year (I make more than that in interest).

But well done you.

Now off you get to an accountant to work out your tax bill.

Erm, I beg to differ but Buy to Let speculators are one of the primary reasons why house prices have spiralled and so many are unable to get onto the ladder. Particularly the greedy London based landlords buying up shedloads of cheap Northern housing for buy-to-let purposes, in many cases, specifically so they can let s**t-holes to the large influx of foreign workers to northern mill towns.

ginger_nuts

an ex council house near me was sold last week to a landlord who will rent it to foreign workers .He/she paid £30,500 OVER the asking price ,and it needs refurbished .

PabloNeruda

ginger_nuts wrote:

an ex council house near me was sold last week to a landlord who will rent it to foreign workers .He/she paid £30,500 OVER the asking price ,and it needs refurbished .

Hmmm, because naturally that was out of the kindness of his heart, and I'm sure there's nothing in it for him.

It's about time more social housing was built, not continually flogged off.

dunstonh

Perhaps my maths are different but £8,000 net capital value increase and £100 a month net on the income on top on a two year project that has taken a total of about 40 hours of my time seems not a bad deal to me.

Its not £100pm net though is it. You have tax to pay on that. You also have misc bills such as annual electrical/gas checks and your figures are based in a period of growth and no problems.

Of course, you dont need to do the checks and run the risk of ending up in prison if your tenant dies or is seriously injured and you dont need to declare the income and run the risk of tax evasion. Plus the gain is potentially liable to capital gains tax and you havent had to redecorate yet or repair damage or have any maintenence.

Your profit doesnt seem high enough for the risk you have taken as you factored in the costs yet that are to come.