Buy to let - advice please

mystic_trev

BobProperty wrote:

This is the point that most recent BTLers seem to miss. If he's still only getting, let's say, £400 pcm, he's better off selling the house and putting the money in the bank.

Quite Bob - Which is why I'm selling up. One bought in 96 the other in 98.....and yes I know I'll have to pay some CGT on the profits!

Jorgan_2

OP, Make sure you do a lot of research before getting into buy to let. Yes people have made good money in the past, many due to the rising housing market which has increased their equity in a property. Their may be better investments out there for you.

As an EA I must speak to at least 5 individuals a week looking to get into buy to let. When I start asking them what they are looking, what return they require, why they have asked for a certain type of property etc hardly any of them can me valid reasons. They haven't researched the market place at all.

I also deal with many successful landlords, some are selling, some are buying. Each one has their reasons for doing this, it doesn't mean its a good time to get into or out of property.

dunstonh

I have three long standing buy to let clients who are selling up at the moment. They have seen good gains but are concerned over future house prices, the rent which hasnt kept up with the asset value, the increasing liability and fears the Gordon Brown will see Buy To Letters as a bigger tax opportunity in the future.

sue_balu

Let me explain - I am actually thinking of selling not buying this BTL!

I was interested to see if I was being realistic or not in trying to market it at that price (local EA advice)

The tenant has been in 3 yrs, pays his rent on the due date and intends (as far as one can tell) to make it his long term home (daughter in good school close by).

We raise the rent each year by what we think fair and I keep a check on rents in the local area. We have had few voids over the 7 yrs. Have invested about £2k in repairs/maint in that time.

We bought it in 1999 for £40k so we feel it has performed ok capital wise. Market is strong in the area particularly at this end of the market.
Only have this one BTL and thinking of using capital (yes, after CGT) to improve our home rather than increasing mortgage on it.

Do you think I'm offering a reasonable investment to anyone interested in taking on a BTL. EA tells me so but of course he would say that wouldnt he?

I could give the tenant notice and sell with vacant possession but it would need a cash buyer due to past settlement on it. If a LL wanted to buy it would mean tenant keeps his home so we'd all be happy.
Am I living in cloud cuckoo land?

PoorDave

sue_balu wrote:

Let me explain - I am actually thinking of selling not buying this BTL!

I was interested to see if I was being realistic or not in trying to market it at that price (local EA advice)

The tenant has been in 3 yrs, pays his rent on the due date and intends (as far as one can tell) to make it his long term home (daughter in good school close by).

We raise the rent each year by what we think fair and I keep a check on rents in the local area. We have had few voids over the 7 yrs. Have invested about £2k in repairs/maint in that time.

We bought it in 1999 for £40k so we feel it has performed ok capital wise. Market is strong in the area particularly at this end of the market.
Only have this one BTL and thinking of using capital (yes, after CGT) to improve our home rather than increasing mortgage on it.

Do you think I'm offering a reasonable investment to anyone interested in taking on a BTL. EA tells me so but of course he would say that wouldnt he?

I could give the tenant notice and sell with vacant possession but it would need a cash buyer due to past settlement on it. If a LL wanted to buy it would mean tenant keeps his home so we'd all be happy.
Am I living in cloud cuckoo land?

Have you asked you tenant if he's interested in buying it?

MissMotivation

Where in the West Midlands? I live and work in the Midlands and may be able to give you an idea of whether this is a good investment.

sue_balu

We did ask the tenant if he wanted to buy but he is not in a position to get a mortgage (works part time as a single parent).

The property is in a town on the Shrops/Wales border but on the Shropshire side.

Anyone any further thoughts/opinions please?

Jim_B_3

You'll be able to find a BTL bandwagon muppet to buy it at that price, I expect. Do it soon, though, before sentiment changes.

bel2310

Have sent you a p m regarding this thread.