Advice please - First time buy-to-let

ehja11

Hi all,

I'd like some advice as a first time cash buyer (no chain). I have about 40k to invest and I'm considering buying a small 2 bed house to rent out whilst I work abroad. It will also be a backup property in case things don't work out and we need to move back to the UK (a flat is too small for us). Now at that figure I understand we are talking the very, very cheap end of the market and most likely not in any fancy areas. I wanted to buy before we left so cant save much more in the next 8-12 months or so. So I'm looking for advice as to the following:

What areas of the UK am I most likely to find a property at that price that does not need massive refurbishment, that can attract a reasonable rent, isn't an auction cheapy and may (a big maybe) increase in value? Ideally it would be nice if it was in a larger town/city rather than in the sticks.

If I'm delusional that such properties exist, what advice would you give to invest this amount in any other forms of property?

Many thanks.

Tixy

I think Nottingham recently came top of a 'cheapest city in England to buy property' report.

May be worth looking in to, to see if it might match your other requirements.

ehja11

Thanks for the tip...I think I did check this area a while ago, seemed a lot of auction properties in our meager price range..or mobile homes!

Tixy wrote: »

I think Nottingham recently came top of a 'cheapest city in England to buy property' report.

May be worth looking in to, to see if it might match your other requirements.

marliepanda

40k and NOT an auction cheapy?

I live near (ish) middlesbrough, the houses in the dead centre (not somewhere you'd really want to live) go for that in auction cheapies....

G_M

Is £40K your total budget or is that the deposit towards a BTL mortgage....?

Or is £40K what you want to spend on the purchase but you have other funds for
*doing up
*setting up tenancy
etc

harrys_dad

The best way probably to use your £40k is to use say £25K as a deposit and borrow up to £75K as a Buy to Let mortgage, enabling you to pay up to £100K for the house. In many areas this will let out for £500 a month. With current interest rates, and allowing for some increase, this will easily be sufficient to pay the mortgage, and the interest on the mortgage is tax deductible against the income. You will then have a £15K buffer to cover void periods, or a difficult tenant. Remember though that you are entering into running a business. You may also however find it hard to get a BTL mortgage if you do not have a permanent UK residence.

I am sure that if asked G_M will link to the appropriate threads for a budding BTL landlord to read.

G_M

harrys_dad wrote: »

I am sure that if asked G_M will link to the appropriate threads for a budding BTL landlord to read.

Yes. If asked.

Oh, OK

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