Possible to buy-to-let with only 60k / no mortgage

topperdoggle

I'm looking to do something "better" than let the 60k rot in the bank.

Ideally I'd buy a small property and let it out, but I don't think it's enough - even for a small property in a regeneration area. Would be happy to hear if anyone has any ideas of suitable areas. Anywhere in the UK will do, or even internationally if it's not too dodgy.

Any ideas welcome, thanks.

ACG

Where are you based? Its always better to have something in an area you can commute to if there are any major issues.

TO answer your question though:
North Manchester has areas you can buy for £60k, Blackburn, Bolton do too. Parts of Wales and the North East (Sheffield/Rotherham way).

I imagine anywhere other than the south east you can get somewhere? Maybe buy a garage in london? :-P

AngelsMadv

I'm just about to embark on a very similar thing all be it with a mortgage. £69K my purchase price for a 3-Bed semi. The area is rough, but the house is lovely and the current owner wants to rent it off me.

I just have to figure now if I can rent a property to a friend and all the pit falls that brings.

Other than that, with 60K you could get a nice mortgage on a buy-to-let in a high student area like Lincoln and make at least 10% on your investment.

phoebe1989seb

You can get a *bungalow* by the seaside in Jaywick, Essex for under £60k - not sure that it's considered anything other than 'dodgy' though

Catspajamas

Have you thought about how you are going to manage it at at a distance.

I am presuming that you have savings other than this £60k as it is not wise to put all of our eggs in one basket, and you will also need extra to cover any repairs etc which will be required.

Are you unable to get a mortgage to increase the value of property you can consider? I am not an expert and I'm sure someone more knowledgable will be along soon but I know it can work out more efficient to put in at least a 25% deposit and have the rest on an interest only mortgage If you can get a decent rate.

AngelsMadv

Catspajamas wrote: »

Have you thought about how you are going to manage it at at a distance.

I am presuming that you have savings other than this £60k as it is not wise to put all of our eggs in one basket, and you will also need extra to cover any repairs etc which will be required.

Are you unable to get a mortgage to increase the value of property you can consider? I am not an expert and I'm sure someone more knowledgable will be along soon but I know it can work out more efficient to put in at least a 25% deposit and have the rest on an interest only mortgage If you can get a decent rate.

Exactly that - YOu can get a 65% LTV now at around 2.99% on buy-to-let.

topperdoggle

ACG wrote: »

Where are you based? Its always better to have something in an area you can commute to if there are any major issues.

TO answer your question though:
North Manchester has areas you can buy for £60k, Blackburn, Bolton do too. Parts of Wales and the North East (Sheffield/Rotherham way).

I imagine anywhere other than the south east you can get somewhere? Maybe buy a garage in london? :-P

I'm currently living and working outside the UK and I know what you mean about getting there if there are any major issues. I guess I would build a relationship with a local managing agent.

I'll definitely check out the areas you mentioned. Can you elaborate on which parts of Wales?

Apart from downtrodden areas that are making a comeback, I'm thinking of places near train stations, as they are useful for young professionals to commute. I love the countryside, but I think that there's simply more demand in towns.

I'm happy to continue here as there are a lot of knowledgable people, but are there any specific websites I can go to to learn about regeneration areas / opportunities?

Also, is there a reputable website or other organization that deals with probate sales as I have heard that is a good way to maximize value? With 60k, I need to make all the pennies count.

In edit: Wow, lots of great answers and food for thought, I'll try soon to get to them all!

ACG

I think most of wales to be fair but possibly the towns.

Go on right move and you can draw an area. Draw massive big area and put a budget of say £65-70k - knowing you can knock the price down a bit?

As for the other bits, i personally wouldnt trust the majority of letting agents as far as i can throw them. Do you not have anyone you can ask? Either existing landlords or people renting and have a good letting agent?

I rented for 6 months and the letting agent was actually alright, i was expecting to have a nightmare argument with them about my deposit (even though the house was fine after i left - they just seemed like a mickey mouse outfit, but were quite decent when it came to it). I do know a good letting agents but not sure if they would cover a 1 off property outside manchester.

RAS

Most of West Yorkshire would have lots in your range. Avoiding student apartments, you would still pick up stuff in the £35-45K range and have enough to refurbish.

See http://www.rightmove.co.uk/property-for-sale/property-41122811.html

or

http://www.rightmove.co.uk/property-for-sale/property-38599990.html

And Bradford/Dewsbury/Five Towns would be cheaper.

00ec25

topperdoggle wrote: »

I'm currently living and working outside the UK

so by law you MUST use a letting agent in the UK OR provide a UK address at which you can be contacted otherwise you cannot become a LL

as said in your thread on the investments board advice on your plans is meaningless without knowing your objectives:
- your age/pension plans and what % of your savings is £60K?
- how much cash do you have after the £60K for contingencies both for property problems and for life?
- do you have any idea what risk you would accept given your objective is rate of retrun measured against fully protected "safe" cash based investments, what is you balance between income and capital risk?

tbs624

00ec25 wrote: »

so by law you MUST use a letting agent in the UK OR provide a UK address at which you can be contacted otherwise you cannot become a LL

For clarification, s/he *can* become a LL - it's just the major issue that the T would not be obliged to pay any rent until such an address *is* provided ( not the best start to property "investment)". LL would also need to check out the non-resident LL scheme at HMRC