Chasing the BTL Dream

mewbie_2

I want to be rich and have a nice pension so I thought it's time to get into this BTL thing. So I have been looking at properties and am keen to explore any avenue, or road - f*ckin lol.

Anyways. I spied an 85k flat which could probably rent out for about 450 a month. Allow for voids 10 x 450 = 4500. 85k x 5% borrowings = 4200. So a nice profit on my 85,000 pounds of 300 hundred pounds a year. Not bad I thought.

However the service charges come to 200 a quarter. 800 a year. So now I'm 500 quid behind.

Plus I can't borrow the money anyway because apparently I need a deposit and get this - the fascists want the rent to cover the mortgage payments by 125% or something ridiculous.

Anyway I'll keep looking - it's the way to get rich obviously
.

Cannon_Fodder

I thought that was a Lily Allen lyric re-write to start with...

F*ck loads of [STRIKE]diamonds[/STRIKE] BTLs - doesn't really scan.

Pobby

Seriously tho mewbs, I wonder how many that the above apply to, quite a few I guess.

mewbie_2

Pobby wrote: »

Seriously tho mewbs, I wonder how many that the above apply to, quite a few I guess.

Well Pobby, I'm tired of arguing. So I am determined to build a property empire and it starts today. Or tomorrow as the agents will be closed now.

I note that they are still advertising property as "suit FTB or investor" so I think I'll just buy one of those investor ones. "Investor" means a savvy sort of person, switched on to money matters and perhaps a bit dapper. So I'll put on a tie, march into one of these agents and ask them to take me through their offerings.

I reckon if I put together every penny I have I might be able to get a mortgage on a flat, shove some DHSS in, and if they exhume me in fifty years I'll be quids in.

PasturesNew

mewbie wrote: »

I want to be rich and have a nice pension so I thought it's time to get into this BTL thing. So I have been looking at properties and am keen to explore any avenue, or road - f*ckin lol.

Anyways. I spied an 85k flat which could probably rent out for about 450 a month. Allow for voids 10 x 450 = 4500. 85k x 5% borrowings = 4200. So a nice profit on my 85,000 pounds of 300 hundred pounds a year. Not bad I thought.

However the service charges come to 200 a quarter. 800 a year. So now I'm 500 quid behind.

Plus I can't borrow the money anyway because apparently I need a deposit and get this - the fascists want the rent to cover the mortgage payments by 125% or something ridiculous.

Anyway I'll keep looking - it's the way to get rich obviously
.

If the maths don't work, put the rent up. There's a housing shortage.
Make the rent £600.

mewbie_2

PasturesNew wrote: »

If the maths don't work, put the rent up. There's a housing shortage.
Make the rent £600.

Actually I've just worked out if I borrow money against my house then the mortgage on the BTL is a lot less. So I can make a real profit from day 1. Now if I do that for a bit, then all the rent money goes in a jar and I can buy the next property in about 20 years. And so on.

Easy pickings. Don't you lot go pinching my idea now. Mind you, there seems to be a lot of typical BTL property available at the moment, so there's room for everyone.

lostinrates

PasturesNew wrote: »

If the maths don't work, put the rent up. There's a housing shortage.
Make the rent £600.

A friend of mine owns a flat in a road where a lot of the flats are let, in West London. I remember the year I met DH we (my friend and I)stayed in it a lot after nights out in London (she lived out of Town too, in a house she rented!) because it was empty, had been empty for a few months, and quite a few on that ''popular'' road were empty. But rents were still ..hefty. For my friend it was no skin off her nose, it is mortgage free, but...I'd have taken less and had an income I think. (I don't know if its let ATM, and she's out of the country, so it not something I can csually drop into conversation, without getting her hopes up we want it if its not let!)

mewbie_2

I've realised I'd need a very big jar to save 500k in. Because prices will go up a lot in 20 years obviously.

carolt

I know this is radical, mewbie, but had you thought of Getting A Job?

I hear some people are doing it (not many at the moment, mind), and it quite nicely takes the edge off the boredom of being on the dole.

Even makes some money, apparently.

Gorgeous_George

IF prices don't go up and
IF they don't go down and
IF rent rises with inflation and
IF tenants don't trash your property and
IF the taxman doesn't change his rules
IF interest rates stay the same and
IF you fix for 10 years. Then

in 10 years the rent will be more than the mortgage interest.

End if
End if
End if
End if
End if
End if
End if

Go Sub = Drive BMW wearing a suit with no tie

It's so basic.

GG

Pobby

carolt wrote: »

I know this is radical, mewbie, but had you thought of Getting A Job?

I hear some people are doing it (not many at the moment, mind), and it quite nicely takes the edge off the boredom of being on the dole.

Even makes some money, apparently.

Normally Carol I would agree but you see I have read that you can become a multi zillion btl landlord with no money down and that`s just at the end of the first year.

You go to Northern Rock and take out a 125% mortgage. Use the 25% as 5 small deposits on new build flats and keep repeating ! cause you can release equity every 3 days with `em going up all the time. And you get to marry a bird that dresses up like Rupert Bear. Think about it, making zillions, you get married and you can have Rupert the Bear fetish evenings. Come on Carol, you know it makes sense.

Right, seen it, me first buy. Nice little new build apartment with views to the gasworks. It`s got plasma flooring and a laminate tv. Only £250,000, should let it for at least £1,500 a month. Fill ya boots!