Advice on entering buying to let market

dorediva

I'm considering buying a property as a buy to let investment. As a newby would appreciate some tips. Want to start off with something small - should i go new build, look for repossesion, go to auctions etc. Also once bought do i handle it myself or use a agent to deal with rent, tenents etc. I'm in Surrey so if anyone knows of any good investment areas to look in i.e what do i look for would be useful.

Thanks

googler

Will this be your primary source of income, or a sideline, or a hobby?

If it will be your primary source of income, do you have a plan? A business plan? If not, it might be a good idea to draw one up.

If it's a sideline, an addition to your regular income, or a hobby, this might not be so crucial.

What makes you think now is the right time to start?

Ulfar

I don't want to sound harsh but from your post I think you need to do much more research.

I suggest you check out landlordzone.

jenny_13

Are you a cash buyer or will there be a mortgage? If there is a mortgage how much of a deposit do you have? Have you factored in being able to pay the mortgage when there is no tennants?

dorediva

All this stuff are good questions for me to look at. We have a friend who is will to invest with us putting up the deposit while we manage it. It is a sideline to main income. Am thinking of longterm investment. There will be a mortgage but am not planning to take out equity of current property. Right time to start as opportunity to do so has come about as result of close friend approaching us - wants to invest but doesn't want to deal with day to day. Market is still in doldrums.

BitterAndTwisted

It all depends on how much aggravation you can tolerate and how much time and energy you have to devote to it. Rents are dropping in most parts of the country as there's an over-supply, mainly because people are renting out their own homes because they can't or won't sell at current prices, never mind all the buy-to-lets on the market. I can think of a lot of less troublesome ways of investing for the long-term than becoming an amateur landlord

googler

So your friend will be either employing you as property manager, or have you under contract as property manager?

If your friend loses their shirt on this investment, will they be likely to blame you, since you're taking on the day to day that they don't want to be involved in?

jammydodgersandrhl

If you do decided to buy to let - please, please, please avoid letting agents and rent privately - they waste both your time and the tenants! It wouldn't be hard to manage yourself!

hometrader

Stay away from new builds unless it's an absolute bargain as the prices are largely inflated.

Would recommend using an agent if this is your first buy-to-let. Shop around though, and try and get a good deal on monthly management fees as this will increase your monthly profit. Please ask if any other Qs.

poppysarah

I've got some magic beans that are a great investment.

Go read up about the business you're planning on getting into.

dorediva

Thanks to all of you who raised lots of questions i need to think on and research.......apart from Poppysarah who need to take a chill pill.......i got the responses i need and can move from here.