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BTL advice
waveneygnome
Posts: 311 Forumite
Posting on behalf of my brother:
He has 2 houses that are let, and is thinking about selling the smaller house and buying a bigger BTL, similar to house B.
House A is in small town, always had good tenants, last one was in for 4 yrs. Re-let last year and had loads of interest.
House B is in University city. Close to the Uni and only purchased last year. No problem finding tenants and so far no issues
House A) 3 beds, £110k mortgage IO 2.49% consent to let, value £150k, rent = £7200 pa (family)
House
4 beds, £145k mortgage IO 3.99% BTL, value £195k, rent = £14400pa (students)
I think my brother has been dazzled by the £14400 rent.
Any thoughts greatly received.
He has 2 houses that are let, and is thinking about selling the smaller house and buying a bigger BTL, similar to house B.
House A is in small town, always had good tenants, last one was in for 4 yrs. Re-let last year and had loads of interest.
House B is in University city. Close to the Uni and only purchased last year. No problem finding tenants and so far no issues
House A) 3 beds, £110k mortgage IO 2.49% consent to let, value £150k, rent = £7200 pa (family)
House
4 beds, £145k mortgage IO 3.99% BTL, value £195k, rent = £14400pa (students)I think my brother has been dazzled by the £14400 rent.
Any thoughts greatly received.
0
Comments
-
If he is prepared to put up with the issues associated with managing student properties then yes, he is making a sensible choice. House A is barely viable as a BTL and would be struggling to make a sensible profit if interest rate were not so low.0
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