Buy to let - advice please

Chichi_2

Conrad wrote:

Ok prove it if you can. I 99% guarantee you are mistaken.

Give us the street name, type of property. We can then check with local agents that such a property costing £122000 will rent for £900!

We will call local letting agents of course and not rely on the selling agents.

Conrad,

I'm not about to give out secrets. However I bought 2 BTL properties in the 90's. One cost £39K (now valued £135,000) , guaranteed rent £800 pcm (That was in the late nineties). The other property was £59K( now valued at £150,000) and rent was £1000 pcm. Not too good at maths but that yield is pretty high. Yes everyone might be jumping on the bandwagon, but historically property HAS to increase in value like everything else. It's common sense.

This £122K property is in a rentable area. There are tons of people looking for places in London and prepared to pay. I let out ONE room in my flat to a coupleof lodgers who happily paid £410 pcm. Although I'm not an expert in all this, it's all about risk. Pay as little deposit as you can and release the equity to buy more as has been advised before.