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Is buy-to-let a good investment?
Tomk
Posts: 27 Forumite
I have 50K to invest.
Is buying a property in London, Islington or Harringey and let out the rooms individually a good investment?
The bank of England rates would have to go to 6% for this to become a liability.
I own my flat and currently letting out two rooms.
At this base rate, I estimate I can make £500 a month, which is 12% return on my 50K.
Is buying a property in London, Islington or Harringey and let out the rooms individually a good investment?
The bank of England rates would have to go to 6% for this to become a liability.
I own my flat and currently letting out two rooms.
At this base rate, I estimate I can make £500 a month, which is 12% return on my 50K.
0
Comments
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I doubt you will get 12% gross yield. 12% on the 50K maybe - but what about the costs involved - the mortgage for a start.
Flats have service charges and ground rents too.0 -
bank rates will go to 6% again. Sometime.0
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Right now it's a horrible idea - worst possible timing to buy into housing.0
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I understand that the key to a sensible investment portfolio is to not put all of your investment eggs into one basket.
With a £50k deposit you should be able to get a decent Buy-To-Let mortgage but please be aware that renting out rooms in a shared house could mean that you fall under the HMO legislation depending on how large the property is. Becoming a professional landlord is not something to be taken lightly or with insufficient knowledge or understanding so plenty of research needs to be done on your part and if you do decide to go ahead you absolutely must join a landlords association.
Are you familiar with the LandlordZone site and forum? I suggest you spend plenty of time reading up on there before you decide to go ahead.0 -
Hi - where can I find the landlord site you make reference too? thanks0
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Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
mummytoprincess wrote: »Hi - where can I find the landlord site you make reference too? thanks
I have a very vague feeling that you may not be cut out for this landlording business0 -
Been away for a while.0
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