Is it still possible to make a profit on BTL???

owner

I have btl's up north and i could get a 100k house and receive rent of about £1300 a month.

You'd have to show me some concrete evidence before I could believe that. Unless it is a HMO, and even then 15% + yields seem a bit steep.

Sisyphus

ds1980 wrote: »

...
Don't ever try and work out percentages but i know its better than 5% in a bank.
...

Do your sums and you'll be fine...

Don't want to be a nitpicker, but this comes across as a contradictory.

If you have done your sums you would know the percentages surely?

dunker1

Hi,reading this with interest as a family member is still considering entering the btl market,i think he can put down a decent deposit on a property(in SE), no one has mentioned letting to DSS tenants,does this make a difference?, im sure these landlords are charging much higher rentals when they know the gov is paying.

ollyshaw

ds1980 wrote: »

There is still great money to be made but its knowing where to look!

I have btl's up north and i could get a 100k house and receive rent of about £1300 a month.

I agree with one of the other posters, this sounds very wrong. I live up north and it seems like your expected rental is 3 times what you would realistically achieve.

Olly

ds1980

yeh of course it has to be an HMO don't think anyone could get that rental otherwise anymore.

I didnt mean i work out percetages but i know we're x amount up a month cash wise. I never look at it as a % return just that the mortgage is covered and we have money in the bank.

The north is a pretty big place so to say its not possible is quite naive! Do some more research and you'll definately find them.

Ill be getting a new one once we have completed on a new property.

Don't know what the percentages are but just bought a house on pompey for £145k on 5% deposit. Its already gone up £20k in capital and £1200 a month for a £10k outlay isnt bad is it?

Ill keep doing it because the more people think its not worth it the more i can gain is the way i see it.

Sisyphus

ds1980 wrote: »

Don't know what the percentages are but just bought a house on pompey for £145k on 5% deposit. Its already gone up £20k in capital and £1200 a month for a £10k outlay isnt bad is it?

Ill keep doing it because the more people think its not worth it the more i can gain is the way i see it.

your gross yield is annual rent(£14400 )/ property value (£145kx120%=174k) = 8.3% or closer to 10% if you take your purchase price.

the World and his wife would do Btl for that sort of yield - well done you've found a stunning deal in the current climate.

Are you sure this is not a guranteed 1st year's rent offered by the developer on an overpriced new build ?

ReportInvestor

Gordon's budget - reducing income tax while recouping some of it from National Insurance - has increased the attraction of buy to let.

It's odd for Labour to favour unearned income in this way.

ds1980

never bought a new build and never will.

Thats in pompey theres much better deals up north though.

ollyshaw

I know this is not scientific but......

£1000pm will rent you a lovely 5 bedroom house

http://www.rightmove.co.uk/viewdetails-6373443.rsp?pa_n=1&tr_t=rent

Where as the cheapest 5 bedroom is £180k.

http://www.rightmove.co.uk/viewdetails-13727659.rsp?pa_n=4&tr_t=buy

Olly

sm9ai

All this long term stuff.

Would it really be good long term investment? The people who you would have to sell to are the people who are priced out. (missed the boat as so many like to say!)

So to make money long term you need to sell to those who have missed the boat. So how are they suddenly going to catch the boat when its time to cash in?

Or have I missed something?