Looking for a nice market town recommendation for BTL property

GDB2222

pootleflump wrote: »

My husband is in the forces and we're looking to buy a 3 bed house as an investment but that we'd also be happy to live in should we have to, as he nears the end of his career.

Our budget is around £200k.

I hope you won't be too affronted but I think this may be a very bad idea. The sort of property you want as a rental proposition is not the same as you'd buy as a home, and vice versa.

Just as an example, you might fancy a country cottage to live in, but it would be a nightmare to do repairs on unless you were living there. It might also be hard to let, so you could get long voids (empty periods with no rent).

For a rental property, you are looking for high rental compared to the buying price. To live in it, you don't care.

For rental, you want low maintenance, and no garden (or very very small). To live in, you may want a big garden.

For rental you want good transport links, eg near a station, but to live in when retired you may prefer off the beaten track and very quiet.

For rental, you should probably not be looking in a market town, and almost certainly not in a village.

There could be far too many compromises here.

pootleflump

GDB2222, I think you talk a lot of sense. Trouble is I'm not cut out for BTL as I always let my heart rule!

The thing is- we already have a 2 bed house which we bought as an investment about 8 years ago and is rented out. We'd like to buy another so that by the time my husband finishes in forces (8 years time), we've paid 8 years off new mortgage and 16 years off 1st house (hoping it's completely paid off as we've always overpaid mortgage). The plan is that in about 6 years my oldest will be getting ready for high school so we want me to settle somewhere and he can come home weekends for his last 2 years. So what we're looking to buy now would have to be something that I'd be willing to live in- if only for a couple of years, until we sell both that and the other property and pool the money to get what we really want.

So a village is out, but is a market town really so bad for rental? Where would you suggest for a good compromise? I couldn't live in a city.

GDB2222

Well, you pay a premium price to buy a property in a lovely market town, but you don't necessarily get a premium rent. After all, there's only so much people are prepared to pay in rent for a given area of the country.

I see what you are trying to do, but it's not going to be that easy. Can you not get another two bed house as an investment? Preferably near the one you already have, so as to make management easier.

Or just pay down the mortgage on the first one and keep your fingers crossed that house prices don't take off.

Perfect10_2

How about Retford? Nice small market town, but great high speed train links to London. Wide variety of property types as well.

thegirlintheattic

How about Hett near Durham, nice little village, good for commuters.

Yorkielass

I live on the edge of a town in north yorkshire, it has a weekly market and with direct trains to London. Houses round here (about 5 years old) rent out really well - whenever one comes up it goes within a couple of weeks, even when several came up together, at the end of December. We're wanting to sell and have really considered renting it out instead as the properties rent really well but don't have the capital to rent and buy in York where we want to move back to.

I'd pick a few places and keep a close eye on rentals on rightmove, when they come on, how long until they go let agreed etc and then look at house prices in the area too - I could obviously see the to let and then let agreed boards going up round here but it was an eye opener to check online how much they were going for and that'll give you an idea of where is financially good moves if you're looking for somewhere that rents out well.

Mrs_Arcanum

If you can find somewhere in West Oxfordshire within budget you will be on to a winner. Brize is currently snapping up rental properties like there is no tomorrow due to a shortage of service personnel housing following the closure of Lyneham.

firestorm

Heathfield East Sussex. Im selling one just like that for 200k right now. Its a lovely location with great schools, & a Sainsburys opening next month.

pootleflump

firestorm; sounds lovely but I'm afraid I've ruled out the South East. :-)

Mrs Arcanum: I think that's a fantastic recommendation and actually I'd already looked at that but was put off by the type of property available. Now that you've confirmed the shortage I think I'll focus on that and compromise a period house for modern. I'm also looking at other areas with SFA shortages such as Stafford and Salisbury Plain area.

Suzanne_Louise

pootleflump wrote: »

SueSmith and Snazzy, I've heard Beverley recommended a few times- will take a look at that.

You can buy mine off me, if you like? Got very good tenants!!