Buy to let with mortgage

PasturesNew

Missing the window of opportunity entirely and only getting one student moved in because everybody and his dog's bought an HMO for students and there were too many. So, you've one student in and you won't be able to find others until the following year's window of opportunity.

BitterAndTwisted

Students. They get into house-shares and then can't get on with the other residents and want out of their tenancy agreements mid-term and don't see why they should give notice. Meanwhile you get their indignant Mummys and Daddys on the phone telling you what a nasty bully your are and they'll see you in court. They get !!!!ed-up and destroy your fixtures and fittings. Or worse, set fire to them. They hold week-long parties and alienate every single neighbour within a half-mile radius who all start harassing you to sort it out. They give their keys to total strangers in the pub to use their rooms during the holidays. No-one will take responsibility to take out the rubbish so they all go on strike until the place gets infested with vermin then it's all your fault for being a lousy landlord letting an unhygienic property. etcetera etcetera etcetera.

Now, does that seem worth it for £300 less taxes and expenses?

Skag

So judging by what you are saying, someone should not only have the whole amount to purchase a house, but he should also have extra money to look after it!

Imho, my experience and people I know who are renting houses things are not that bad. They can be, but are not. Plus, luck helps the brave ones, you can't always account for the worse that might happen.

End of the day and if things turn up soooo bad, you sell the damn house!

BitterAndTwisted

Yep, and if it's been an HMO and you've had the usual shower of student in there for any length of time it'll attract a lower price because of the work that needs to be done. You could get lucky and sell to another investor who understand the HMO market, you never know.

It's true, you can't always account for the worst that might happen but any sensible business-plan will have a contingency for the worst-case scenario. £300 a month less taxes with no interest-rate rises doesn't sound like enough of a margin to me. You'll be spending that at the end of every term just getting the place cleaned, straightened up and replacing anything that's broken.

SouthCoast

Lots of competition from very professional multi property landlords in Brighton.

What yield do you expect your investment to generate?

SouthCoast

Supply v Demand.

Language schools in Sussex could be forced to turn away up to 40% of new students to meet tough new migration targets.
The powerful Home Affairs committee is investigating the impact of plans to block applications from overseas students who do not have English language to at least A-level standard and it will head to Brighton next week to gather evidence.

http://www.theargus.co.uk/news/8829928.Sussex_language_schools_face_tough_new_migration_targets/