New Post Advanced Search

looking to start BTL business

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
13 replies 1.3K views
oddsocks6573oddsocks6573 Forumite
2 posts
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
My husband and I are selling our business and with the money become mortgage free on a £390,000 house. We will have £150,000 to use as deposits for maybe 3 BTL flats. Is this possible with no jobs but equity in our house?
«1

Replies

  • G_MG_M Forumite
    52K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    Yes.

    Get yourself a good book on the subject.

    Read: New Landlords (information for new or prospective landlords)

    As with all investment, spread your risk, so either start with one property, and expand, or stick to one/two properties, and invest elsewhere too (eg stock market)
  • chanz4chanz4 Forumite
    10.3K posts
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    ✭✭✭✭✭
    or allow first time buyers a chance
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • KynthiaKynthia Forumite
    5.6K posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    chanz4 wrote: »
    or allow first time buyers a chance

    Give it a rest, the housing market is not a charity. Also investors buying a property to let do their sums and only buy properties at a yield low enough to make a good profit. Therefore any first time buyers who have the correct income and have saved the right amount of deposit should be outbidding investors in most areas.
    Don't listen to me, I'm no expert!
  • My husband and I are selling our business and with the money become mortgage free on a £390,000 house. We will have £150,000 to use as deposits for maybe 3 BTL flats. Is this possible with no jobs but equity in our house?


    if you are not planning to work - means you can live anywhere in the country
    i would consider putting your £390,000 house on rent too and move to a cheaper location
    with being a landlord, rule #1 to avoid tearing your hair is to buy near your residence.

    I started with a flat around 150miles away - it got too much hassle when i had to commute every second weekend for a 15 minute check due to something not right
    tenants will call you for minor problems

    therefore now i have 2 properties both within a 5 minute drive away

    look at properties outside london (much better returns), and dont be scare of locations near a university - students are good payers because most of them have their parents paying for them or the relevant loans for their higher education-
    i rent both to students, which means that before they leave, they already have another student lined up - so no agency charges

    finally - get an accountant if you want to avoid that task too
    will cost you around £80/year, which you can deduct from your profits, and allow you to not bother with your tax returns
  • ognumognum Forumite
    4.8K posts
    ✭✭✭✭
    My husband and I are selling our business and with the money become mortgage free on a £390,000 house. We will have £150,000 to use as deposits for maybe 3 BTL flats. Is this possible with no jobs but equity in our house?

    You don't say if you are going to work or not. If your BTL flats are mortgaged and you use the rent to pay the mortgage how will you live?

    I am sure you have this worked out though but if you have a none payer how will you pay the mortgage etc?
  • Yes, working out figures it doesnt really make much money. We are just at a crossroads and have an opportunity to sell our business property but dont want to continue the business and are looking for a new start. We would realise about £300,000 and thought being mortgage free would be a dream come true (140000 remaining on mortgage) but although £160000 is alot, it doesnt go far in properties! We are currently living in surrey and maybe a big move out of the commuter belt is the answer? although we have 3 boys in good schools. Just trying to reduce our stress and make life more enjoyable, but hey arent we all! Thanks all for your advise.
  • brit1234brit1234 Forumite
    5.4K posts
    Kynthia wrote: »
    Give it a rest, the housing market is not a charity.

    It is really. Buy to Let investors have been majorly bailed out last 5 years with 0.5% base rate, funding for lending, QE and more whilst 1st time buyers have their deposit savings stolen. Then landlords have the big tax advantages over 1st time buyers whilst targeting the same stock making a shortage.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • ognumognum Forumite
    4.8K posts
    ✭✭✭✭
    brit1234 wrote: »
    It is really. Buy to Let investors have been majorly bailed out last 5 years with 0.5% base rate, funding for lending, QE and more whilst 1st time buyers have their deposit savings stolen. Then landlords have the big tax advantages over 1st time buyers whilst targeting the same stock making a shortage.[/

    In the area I live many BTL investors are buying with cash, they are doing this because the interest rates are low, they have spare cash and cannot get any return on a savings account, this drives them into property where over the long term they will get some capital growth as well as some funds to aid there retirement or goal of retirement.

    I do blame the government for this! I don't have an answer but it will continue while returns on savings are so low!
  • ognumognum Forumite
    4.8K posts
    ✭✭✭✭
    brit1234 wrote: »
    It is really. Buy to Let investors have been majorly bailed out last 5 years with 0.5% base rate, funding for lending, QE and more whilst 1st time buyers have their deposit savings stolen. Then landlords have the big tax advantages over 1st time buyers whilst targeting the same stock making a shortage.

    I notice you have changed your signature, I guess you cannot any longer quote the housing market as crashing?
  • KynthiaKynthia Forumite
    5.6K posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    Without landlords buying properties to let, there will be a shortage which will push rents up and hurt those that can't buy or choose not to. Also isn't it better to have those going into the buy to let industry who are deciding to become long term professional landlords rather than just having accidental landlords? They are more likely to let long term so tenants aren't moved on when the property is to be sold, be less emotionally invested in the properties and disturb the tenants less, become experts who are more likely to comply with laws and regulations plus have the funds for repairs making life better and safer for tenants?
    Don't listen to me, I'm no expert!
This discussion has been closed.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support