Buy to let: the future

PaulSimon

Hi all,

I hope this is the right place to post this. Apologies if it is not.

I have around 50k tucked away, and am contemplating putting it to buy to let. Obviously no one has a crystal ball, but how do you feel the future looks re BTL? Will we ever have another golden age of BTL as we did before the crash?

Grateful for your thoughts.

Thanks,

Paul

Old_Git

well my crystal ball is on the charger .But I would think BTL is here to stay. The days off going to NIHE and getting a house or flat the same week are gone .The days of 120% or ever 100% mortgage are gone .
How it changes when universal credit comes in is a different matter.

warmhands.coldheart

I agree with Old Git. There will always be a market for private sector rentals.
Obviously though you need to think long and hard about it.
It's not a simple cash cow as some people think ..
You still have to maintain the house, insure the house and pay the rates....
You have to pay your tax on the income (I'm assuming you're going legit on it !!!)
If you get a bad tenant who defaults on the rent, it ain't always just a case of asking them to leave.... they have rights too don't you know !!!!

ballyblack

Landlords have to register as well

http://www.nidirect.gov.uk/landlord?gclid=CIyA-e69_bwCFSgGwwodQbQA8Q

Your registration will last for three years, starting from the date of your first registration. You will need to re-register every three years to ensure the information held is accurate and up-to-date



.

stephenni1971

I'm a mortgage adviser amongst other things and have a constant stream of people who think they can become property barons by getting a BTL property.

Most do it without ever looking at the figures - agents fees, EPCs, gas/oil boiler servicing/new carpets every 4 years/repainting between tenants/maintenance and repairs... it all adds up.

There could well be money in it if you are looking to play the long game - but the times of remortgaging every 12 months to take out a lump of equity as cash to buy the next one will never return.

BTL you will need higher deposit - have higher fees - pay higher interest rate - and the rent will need to cover the 125% of the mortgage. ie if the property you buy rents for 500pm your mortgage will have to be 400pm or less.

It's not impossible to do - but as with all things financial you have to go in with your eyes open and realise there is an element of risk involved.

Interest rate risk - could go up
Rental market risk - rents could fall
Property market risk - values could fall
Tenant risk - could leave arrears/damage etc

Also allow for a void period of 1 month in 24 - on the basis you wont have tenant B standing on the doorstep ready to take over from tenant A.

I rent myself and just moved last month - I was surprised at the number of reasonably good properties that had been sitting since before Xmas that were still empty at the end of February - could you manage that if you had no income for a few months?

Cotta

ballyblack wrote: »

Landlords have to register as well

http://www.nidirect.gov.uk/landlord?gclid=CIyA-e69_bwCFSgGwwodQbQA8Q

Is this something that has to be done annually?

saverbuyer

3 years.


I pity anyone who has been letting their property without lender consent.


The register will be open to all.

motorguy

saverbuyer wrote: »

3 years.


I pity anyone who has been letting their property without lender consent.


The register will be open to all.

You seem to pity everyone who is not in the exact same situation as you.....

Cotta

saverbuyer wrote: »

3 years.


I pity anyone who has been letting their property without lender consent.


The register will be open to all.

If they don't register they'll be fine.

motorguy

Cotta wrote: »

If they don't register they'll be fine.

You *have* to register by 24th Feb 2015 if you already have a tenant prior to 24th Feb 2014.

Of course if you didnt, you would then be liable for a fixed penalty fine of £500 if they twigged you were renting, which is less than the charges associated with changing to a BTL mortgage or the increase in rate your lender would apply....

Not personally impacted as our mortgage company knows we rent - we stated that to them from day one.

saverbuyer

Cotta wrote: »

If they don't register they'll be fine.

Tenants have access to the register. Everyone does.



Have fallout with the landlord.



Check the register. They aren’t on it…