looking to buy to let for 1st time ; advice appreciated

Jimmy_31

new_home_owner wrote: »

a average house by me is about 150,000 pound thats for a three bed semi, which should be easily affordable for a couple who both earn avergae sallaries.

maybe you need to look at cheaper areas, if you live on your own you wouldnt need a three bed roomed house anyway.

And why wouldnt i need a 3 bedroom house if i lived on my own ?, its not all about the bedrooms, its no good to me buying a 2 bed terrace because in my area they have nowhere near enough garden area to suit my needs but the 3 bed semis do.

missile

Orpheo wrote: »

Ah, the obligatory, "you're evil!" implication. Alternatively the landlords who go broke will be forced to sell their houses at lower, perhaps, more affordable prices. They might even sell their houses to new, solvent, landlords who will continue to rent out the properties, quite possibly with cheaper rents.

I did not imply "you're evil" Nor do I think that BTL landlords are the scourge of the world
You missed the point of my post

Those on housing benefit would struggle to qualify for a mortgage and the "lucky" few would end up deeper in debt contributing to banker's bonus.
The rich always feed on the poor :EasterBun

Jimmy_31

new_home_owner wrote: »

its a good job your not on a average sallary then to save 30,000 pound in 12 months is good going, is that whilst you are paying rent or do you still live with your parents?

The 25 to 30k in 12 months is how much a lot of houses have been reduced by so to me thats how much i have saved by not buying, and my living situation rotates between working away from home a lot and when im back home i stay with parents or my sister.

new_home_owner_3

Jimmy_31 wrote: »

The 25 to 30k in 12 months is how much a lot of houses have been reduced by so to me thats how much i have saved by not buying, and my living situation rotates between working away from home a lot and when im back home i stay with parents or my sister.

im off to bed good night, and i hope you find what your looking for everyone deserves to have their own home.

Thrugelmir

bororooney wrote: »

I've decided to invest my savings into property.

With no pension in place and no other investments. Starting a property business is a very much a heads or tails risk. As these are uncertain times and property has passed its peak, with little foreseeable upside in the medium term.

So what's your objective? To make a quick profit? To provide an income for retirement?

missile

bororooney wrote: »

Thanks. Getting more daunting by the second! I forgot to mention I am mortgage free and earn in excess of 50k+ after tax a year if that makes a difference to any advice gladly accepted.

I would suggest you research your area and identify what your target market is. Do not overstretch your finances. Be prepared for the long term investment. Do your sums carefully and don't forget to budget for buying and selling costs.

Property letting is not risk free easy money. Any less than 7% return on investment is not worth the hassle imho.

HAMISH_MCTAVISH

Jimmy_31 wrote: »

in the last 12 months alone ive easily saved 25 to 30 thousand pounds by not buying an overpriced house.

You've been asked to substantiate that claim several times now.

The biggest YoY price fall in the North is around 7%.... But in most areas of the North it's just 3% to 4%. Which on an average 'oop north' 100K property is between 3K and 7K. NOT 30K.

So post the links and we'll believe you. Until then however......

HAMISH_MCTAVISH

Jimmy_31 wrote: »

I can tell you what a normal price isnt and thats a price of 6,7,8,9x the average sallary.

And the average FTB mortgage never crossed 3.5 times income even at peak in 2007.

So not sure what point you're trying to make.

dorset_nurse

I have been watching house prices in my area since I bought just over a year ago and noticed no changes- apart from the fact that mortgage rates are now higher than mine.

I am hoping I will have paid off this mortgage in 4 years time (with thanks to the hell of living with lodgers) and hopefully buy a lovely quiet little place leaving this one letting when I do.

I'd rather stand on my own feet than live with my parents/sister!

madeupname1

brit1234 wrote: »

However in the short to medium term you will be making a lose. With prices set to continue falling for years and maybe years of static growth it could be over a decade before they recover to today's prices.

My tax return begs to differ ...

My point was I didn't go into it looking for a short term return on income. That, however, has been a happy side effect on a wise investment.