Best location for BTL

hopefulfooluk

Hi people,

I am considering going travelling sometime in the next year and before I do so I'd like to have a backup plan in case I need to come back, and also a possible source of income for while I'm away.

As such I am thinking of getting a BTL mortgage and buying somewhere cheap so that I might be able to make a few pounds on rental income. I would get a letting agency to look after the property while I'm away so I'd have to give a percentage to them.

The mortgage would be 100% of the property value - I'm not sure that there are BTL mortgages that cover this amount but if there are, great.

With this in mind does anyone have any suggestions as to where might be the best place to buy with regards to property prices and likely rental incomes? South of England is out as the prices are so high so the mortgage would exceed the rental income, which is not a viable option.

Your thoughts would be appreciated - I don't expect to make a lot but if I can do it and break even at least then I would go for it.

silvercar

The mortgage would be 100% of the property value - I'm not sure that there are BTL mortgages that cover this amount but if there are, great.

Generally you need a 15% deposit, occasionally only 10%.

The easiest way round would be to find a lender who would let you buy on a residential mortgage and then give 'consent to let' while you go travelling.

To be honest, I think you will find it difficult to make a profit initially. I wonder if it is worth the hassle at this stage.

Ad

Why follow the heard? Anyone entering the ‘Buy to let’ market now is basically banking on future rises in house prices as the rental return doesn’t equal anything other than little to nothing. Many amateur landlords are subsidising their tenants in the vain hope of future house price rises. Who really knows what will happen with prices.

The usual plan is an interest only mortgage as repayment is generally higher than the rental income generated. It’s a big con really as so many sheeple are doing this. Remember the rental income doesn’t only have to cover the mortgage you will have repairs and other maintenance costs, buildings insurance, gas safety checks, electrical appliances safety checks and don’t forget times when the property is empty, which will happen. Rents just haven’t increased in the same way as house prices, which speak for itself.

People will argue forever the reasons why house prices have risen so much in the last 5-6 years. Sentiment is a key part and as with any investments they can go up as well as down.

dunstonh

With this in mind does anyone have any suggestions as to where might be the best place to buy with regards to property prices and likely rental incomes?

Bulgaria, Eastern Europe, Some German.

As such I am thinking of getting a BTL mortgage and buying somewhere cheap so that I might be able to make a few pounds on rental income.

In the UK, if you arent DIY minded and have a 15% deposit then the rental income will often only just cover the mortgage if you are lucky. Rental yields are so low now unless you have the skill to pick up properties at the right price.