Buy-to-let advice

churchy80

Hi everyone,

My Parnter, myself and 2 children are thinking of moving to Scotland from Wales in about 18 months.

I'm thinking of renting my property out (which I currently mortgage) and moving to scotland. I plan on renting a property in Scotland, until we can get enough savings to buy a house.

Renting the property in Wales is a fall back plan incase thing don't work out. However should it work out I would like to use the investment toward a deposit on a house in Scotland.

firstly, is this a crazy idea?
Where do I begin to get advise to let my property out?
Is this the right way to move?

Colincbayley

churchy80 wrote: »

Hi everyone,

My Parnter, myself and 2 children are thinking of moving to Scotland from Wales in about 18 months.

I'm thinking of renting my property out (which I currently mortgage) and moving to scotland. I plan on renting a property in Scotland, until we can get enough savings to buy a house.

Renting the property in Wales is a fall back plan incase thing don't work out. However should it work out I would like to use the investment toward a deposit on a house in Scotland.

firstly, is this a crazy idea?
Where do I begin to get advise to let my property out?
Is this the right way to move?

You are thinking far enought ahead that you have plenty of time to complete lots of research.

First, you should read everything you can on being a Landlord ( www.landlordzone.co.uk, this forum and www.lettingfocus.com )
In order to do things right and to know what you are letting yourself in for.

Property can be a great investment, if you do it right. So read, read, read and read somemore. Then don'tbe afraid to come back on here and ask any questions that come up.

Enjoy.

G_M

Go to Waterstones or your library and get Tessa Shepperson's book or similar.

mlz1413

churchy80 wrote: »

..

firstly, is this a crazy idea?
Where do I begin to get advise to let my property out?
Is this the right way to move?

1) if the move to scotland may not work out then IMO no its a sane option to keep a foot hold in your exsisting area.
2) Landlord Zone will give you a good idea about responsiblities of being a LL, I think there are weekend workshops too.
3) is really connected to 1 as normally you would sell and re-buy or sell and rent. Both are options open to you along with this idea.

Also look up HMRC taxation of rents as your rent in scotland would not be an allowable expense against the incoming rent from Wales.

V_J_Conn

just with the last point if you mortgage is interest only then the whole of this can be taken into for tax purposes so totally agree get advice from an accountant.

Also, as you have a mortgage on your property in Wales you must notify your lender if you decide to rent it out and change your insurance accordingly. Worth talking to them as part of your research to see what their reaction is.

I rented my property in Wales out to move over to England. My main experience having rent my old home out since 2004 is to put money aside for arrears and void period.

GDB2222

Letting your property in Wales out for a period makes good sense. However, as a long-term proposition, it's a nightmare as you are totally in the hands of the letting agents. Also, when you decide to sell, it's very difficult to do that whilst it's tenanted as the tenants have no incentive to display the place nicely. OTOH, keeping the place empty whilst you try to sell it is also a nightmare.

The first question you really ought to ask yourself is whether your current house makes sense as a rental proposition? Are there lots of renters in the area? Is it near transport? What would the yield be? Most houses that people buy for their own use are not really ideal as rental investments.

churchy80

Thank you very much for your advise.

I'm about to begin my research and will no doubt have further questions. Their is a lot to consider and do.