First Direct Mortgage & Letting Out House

Vincenzo

Fire_Fox wrote: »

AFAIK two months a fairly standard way of doing your rough workings. As you say the actual void depends on many factors, some of which come with experience which the OP clearly doesn't have.

Income tax still needs to be registered for and factored in to any calculations (even if you put zero in the column) as I stated. Many would-be landlords post on this board thinking they can write off the entire
mortgage, repayments and all, and don't need to pay income tax. As you have very eloquently explained, being a landlord is not that simple.

Agreed. If a 2 month void was factored in with all the other costs and the sums added up it would be a very safe bet. In practice I would say anyone that ends up with a BTL that suffers voids of 2 months a year has not done their homework.

On a more general note I have noticed that when people ask for advice about BTL on this forum they generally get met with a great deal of negativity. I realise BTL is currently out of favour but it remains and will continue as a valid form of investment. As with all investments there are risks and rewards.

Cash-Is-King

Vincenzo - I agree with the "great deal of negativity" statement. It is if I am plotting to kill someone, "don't do it they all cry!" "Have you considered this that and the other???"...

I have a very saleable house done up to a high spec in a very good area, the market is depressed and I don't want to sell it yet - I want to buy the second house on this trough and want to sell my existing house in 3-5 years (if at all).

I want to buy my second house safe in the knowledge that I have a tenant in place, eliminating an early void period. Sensible I think.

When I get my second house I will then be safe in the knowledge that I will be able to make my repayments – and I will have a contingency sum set aside for a few moths void and repairs etc. I thought my strategy is a sensible one. The mortgage juggling is the bit that I am most wary about.

I am off to see an IFA today to strategise. Thanks all for the feedback, it is very much appreciated – if there is anything else anyone would like to add/suggest I am all ears!