should i buy property

EdGasket

The problems with Buy to Let are:
1) It is not your main residence so when you sell you lose a large chunk of any capital gain to tax and as you can't sell bits of the property, you are unable to make use of each years CGT allowance.
2) You will have to pay ongoing expenses like council tax and insurance whether or not it is let.
3) If you get a bad lot of tenants, they can wipe out your profit.
4) You will have to invest your own time managing the property and it's letting although some can be offloaded to an agent for a cost. However when problems arise, the agent will quickly step back saying it's between landlord and tenant and leave you in the lurch!

atush

Students can be good, as you let to them individually therefore get up to double the rent you would get off one family. You only need kitchen/one living area so an extra living area can be another letting bedroom. Too many bedrooms mean a house of mulitple occupancy which has higher codes so avoid that if you can.

You can get (depending on where you are and what you can get away with) 10-12 months rent (although typically charged per week) in student areas. For instance, one son lived in Selly Oak and all student lets were for 12 months so we wasted quite a bit. One in Royal Lemington for Warwick next year has got an 11 month rental. I always try to find shorter, but the best places can ask for a term they like.

Which still works out more for the landlord than letting to one family for 12 months, and gives you one-2 months to repaint etc and get it ready again.

But do look for a place that can be at least cosmetically improved such as decoration flooring. The best improvements to equity can be if you redo bathrooms and kitchens to a modern clean and new standard but you have to keep a Very tight reign on costs for this.

TBH, this path can be lucrative in the long term, but is a Much harder and riskier route to 4-8% income than a good equity income portfolio can be. So we dont' really recommend it for someone like yourself. Esp as the funds are locked in and not liquid and should you need the money soon, you could be in big trouble.

Go over to the House buying, letting and selling boards if you remain serious as this isn't really the place.

debtfree1day

atush, thanks again

I didn't realise there was a specific forum location for housebuying/letting etc so I shall definitely head over there

I have much to learn and research and I haven't fallen in love with the idea. I am active by nature and like to be busy, so this could be the way forward......but I will tread carefully....

thank you!