Buy to Let - How I made £100 @ month

Tassotti

£100 per month...wooopeeee...not exactly Donald Trump are you. However, multiply this by 50 properties and you have a half decent income.

lowis

...with 50 times the work and stress :-(

Tassotti

I think anyone with a salary of 60K is going to encounter stress in their job. The majority of my properties cause me no stress/work whatsoever

HouseHunter_2

lowis wrote:

i was reading this thread and wondering what all the fuss was about for 100 a month - you could make that selling junk on ebay!

this is so right. my boyfriend and I have paid for two holidays just by selling all our c*#p on ebay/amazon and we also intend to fund our wedding in this way. I also used to make an extra £100 a month by coaching kids for the 11+ for 2 hours on a saturday. Incredibly stress-free, but hardly what I would call lucrative.

lowis

tassoti - if property management is your main source of income / job then that is fully understandable, 60k seems ok. out of interest, do investors/btl people with a large portfolio view £100 a month (after costs etc) as a fair return per property?

Gorgeous_George

My view is that DSS tenants are likely to be home more and therefore wear and tear would be greater.

For the OP, it seems to be a borderline investment and only worth the hassle if prices rise, which cannot be guaranteed. Income tax, CGT, running costs and voids all eat away at the profitability.

Have you got a Landlord's Certificate for gas and electricity systems? I believe the gas is mandatory (if the house uses gas) and the electric one cost me £100+ with a £500 bill to correct the faults.

You sound as if you are in a position to absorb the risk and so no problem - but that could not be said for everybody.



GG

Tassotti

lowis wrote:

tassoti - if property management is your main source of income / job then that is fully understandable, 60k seems ok. out of interest, do investors/btl people with a large portfolio view £100 a month (after costs etc) as a fair return per property?

my lowest yielding property returns about £90 per month. My highest returns about £450 per month.

Actual rental income from property is about 96K per annum, but isn't my main source of income.

lowis

thanks, was just wondering what sort of figures would be acceptable at a minimum for someone with a portfolio.

missk_ensington

Tassotti- how do you manage £450 a month when a Commercial Loan is around 7.5% (surely you haven't bought all the properties outright?) Even on a £100,000 loan the interest alone would be around £650 a month, unless you've been doing this a long time and have raised cash to buy the properties with little or no loans.

My Mum has a large portfolio of properties, but only gets around £100-200 a month after costs on each rental. She doesn't mind because it was never intended as an income to live off, more a long term investment as the loans are only 15 years and so in a few years they will be loan free, and the return will be much much bigger as a lot of her properties are Freehold Commercial Properties, thus earning her £80,000 every 15 years in just selling the lease, plus rent at £1200 a month.

Tassotti

when you say 'commercial loan' I take it you mean a BTL mortgage?

Ah..just re-read your post regarding you mum's commercial property investments.

None of my BTL mortgages are anywhere in the region of 7.5%

The highest is 5.2% lowest 4.69%.

The £450 property I bought in 2001 and haven't released any equity on it .....yet (about 60K)

Theoretically I could HMO up a few properties and receive around £600 profit per month on each one, but it really isn't worth the hassle with all the new regulations.