How do I buy to let ??? Help !

theartfullodger

Find a rich, if possible young, widow or divorcee.

Cheers!

myhouse_2

navmanwestmids wrote: »

Agreed. I have fully accounted for voids/repairs etc and could easily afford the repayments (on the mortgage that I'd take out) The first property that I looked at would have returned the mortgage repayment montly twice, because of the size of the deposit that I could put down reducing the loan.

It's good that you've accounted for voids/repairs - you'd be surprised how many do not. Perhaps add into that the occasional bad tenant (doesn't pay rent/damages property).
Also remember to account for the fact that you might be able to get a better return elsewhere. It's all very well putting 50,000 into the house to reduce the repayments, but you have to compare it to 50,000 in the bank (getting say 3.5% interest - much more if rates rise and more if invested in a better investment vehicle). Be psychologically prepared to make a loss if house prices drop further - how would you feel if your house was worth 30,000 less in a few years time.
Not saying all these things will happen, but you should be financially and psychologically prepared for it. It's quite likely that house prices will drop from here - they certainly won't be going up anytime soon, and owning a house is much more work than having the money in an investment.

princeofpounds

Why on earth would you venture into BTL without purchasing your own place first? It's incredibly inefficient. You lose out on the capital gains benefit of your primary residence, you have to pay take on any net earnings (which you do not on the effective 'net earnings' of avoiding rental payments), mortgage rates are typically higher, you lose the rent-a-room tax benefit you can use for lodgers, there are the additional costs of running a business removed from your place of residence, your income is subject to risks like voids which simply don't apply from the 'income' gained from avoiding rent, etc.

navmanwestmids

princeofpounds wrote: »

Why on earth would you venture into BTL without purchasing your own place first? It's incredibly inefficient. You lose out on the capital gains benefit of your primary residence, you have to pay take on any net earnings (which you do not on the effective 'net earnings' of avoiding rental payments), mortgage rates are typically higher, you lose the rent-a-room tax benefit you can use for lodgers, there are the additional costs of running a business removed from your place of residence, your income is subject to risks like voids which simply don't apply from the 'income' gained from avoiding rent, etc.

Because I am content where I am now! If I am to buy it would be to let untill I decided to move in or sell towards another.....