Buy to let - some beginner questions and advice needed

holly_hobby

Having re-read it back - yes I can see how it may have been mis-intrepretated - funny how it makes sense when you write it !

Thanks G.

H x

G_M

You're welcome. And as it's midnight & I'm off to bed..

xx
M

GDB2222

DarrenRS wrote: »

1. I am looking to secure a low-level income of between £150 - £200 a week by investing approximately 120k in 1 or more BTL properties - is this expectation realistic?

No, it's not realistic to aim for £7.5-10k rent after expenses, or at least it's not with reasonable quality property with reasonable quality tenants.

You need to factor in expenses and voids, so as a rough rule of thumb I assume that 3 months' rent a year will disappear and I do all my sums on the basis that I will receive 9 months rent after expenses but before tax. So, to receive say £8.5k after expenses, you would need around £11-12k gross annual rental.

http://www.rightmove.co.uk/property-for-sale/property-31859821.html Contradicting myself now, this one does give gross rent of £4.4k a year on an outlay of £30k (and you might get it for less). So, buy 3 like that, and you might meet your target. My concern though is that I have no idea what Burnley is like, and I can see that the house next door has the window boarded up! I'd also be extremely concerned that nearly all the houses in the road have a burglar alarm on the front. So, I suspect (but don't know for sure) that this is not a reasonable quality property.

DarrenRS

ok thanks. Burnley has the dubious reputation for being the cheapest place in the country to buy a house, though I need to do more research on that subject. However I have not as yet noticed anywhere that is apparently cheaper to buy a place than Burnley. I would like to know why Burnley is so much cheaper than other places, though the burglar alarms on the front of all the houses also caught my attention! Perhaps not all the alarms are functional though and are just for show.

G_M

They may only be for show, but why do all the owners feel a need for the show........?

There's always a reason why properties in a given area are cheap - people don't want to live there for some reason. Depending on the reason, it is likely to apply to tenants as well as home-owners.

DarrenRS

Yes I can agree with you, but on the other hand I am sure there are people that can (and do) live quite contentedly in such places as Burnley.

Beckyy

Very true, but I would check the area out thoroughly - it may be difficult to find (or KEEP) tennants in an undesirable area.

Good luck, and keep us posted on what you do.

poppysarah

How far do you live from Burnley?

Will you be doing repairs etc?

Gleeful

DarrenRS wrote: »

ok thanks. Burnley has the dubious reputation for being the cheapest place in the country to buy a house, though I need to do more research on that subject. However I have not as yet noticed anywhere that is apparently cheaper to buy a place than Burnley. I would like to know why Burnley is so much cheaper than other places, though the burglar alarms on the front of all the houses also caught my attention! Perhaps not all the alarms are functional though and are just for show.

Burnley is an absolute shithole. Unemployment is really high, so it's likely any tenants you have will be on benefits. Don't touch with a bargepole! There's a reason why the property is only 30k

poppysarah

Gleeful wrote: »

Burnley is an absolute shithole. Unemployment is really high, so it's likely any tenants you have will be on benefits. Don't touch with a bargepole! There's a reason why the property is only 30k

Does Burnley have additional landlord registration requirements?

The poorest areas of Manchester (Lightbowne for one) have additional cost implications for landlords.

Just because they're poor doesn't mean they won't expect decent homes.