buy to rent

[Deleted User]

With your very abrupt reaction to some questions asked (there are better ways to tell someone to take their nose out of your business - <gasp> you could have just ignored them), I suspect renting would be a nightmare for you and any tenants.

TartanSaver

This whole thread just demonstrates why our unregulated system, which encourages individuals with no business experience (or common sense) to take primary responsibility for other people's basic need for somewhere to live, is not fit for purpose.

Jonbvn

spezial wrote: »

stick to the topic and let my ability to take a loan for myself
just answer to my question if such movement is beneficial and don't assume about my ability to get a loan

Do yourself and any possible tenants a favour and do not go into BTL. Stick to Homes under the Hammer

ognum

spezial wrote: »

mmm
I dont have a house and I won't pay an interest more than 4-5%
when I buy a house with mortgage, do they have to know what I am doing with the house? that's madness! the government should make these arrogant banks less nosy

then my only option is to buy it in cash now and start lenting it?
will I be sure that it's a good investment?

in the areas I am looking at, more rents are aroung 600pcm and most services and ground rents are 100pcm, so I end up with 500 minus the income tax which can be 30%, so I end up with 350, and if there are months without rent, or any damages in the flat or maintenance, then this can drop to 250-300!!! and what if I have a company to manage it? how much they will keep for themselves??? they may give me 200 pcm, which is nothing compared to the whole hassle and the potential earnings of the 80k capital with 3-5% deposit interest!!!

Is this you buisness plan?

Cuilean

Not commenting on financial matters here, but I'm not sure Basildon or Pitsea are a great place for you to start a novice BTL portfolio unless you know the area really well. There are some nice areas there, but there are also some utterly terrifying areas. They can be separated by a hair's breadth, so don't just go by postcode. I speak as someone who lived there for a couple of years, and would not go back.

I would hazard a guess that you're looking at the cheaper end of the market, like the Vange/Pitsea border or Laindon. Neither of these have especially good reputations, even amongst the locals.

Geographically, yes, it's on a mainline route to London, but if you're interested in investing in Essex, you'd be better off looking at places like Benfleet, Leigh or Westcliff which are properly established popular areas with all the funky facilities that young people like.

spezial

Cuilean wrote: »

Not commenting on financial matters here, but I'm not sure Basildon or Pitsea are a great place for you to start a novice BTL portfolio unless you know the area really well. There are some nice areas there, but there are also some utterly terrifying areas. They can be separated by a hair's breadth, so don't just go by postcode. I speak as someone who lived there for a couple of years, and would not go back.

I would hazard a guess that you're looking at the cheaper end of the market, like the Vange/Pitsea border or Laindon. Neither of these have especially good reputations, even amongst the locals.

Geographically, yes, it's on a mainline route to London, but if you're interested in investing in Essex, you'd be better off looking at places like Benfleet, Leigh or Westcliff which are properly established popular areas with all the funky facilities that young people like.

I know about the reputation, but I have lived in Laindon and Pitsea with no problem at all.
Basildon is full of facilities, it has a large entertaining centre and many nice places. It's not the best area, but one of the best you can get east of London. And you forgot the biggest advantage of Basildon, among the other areas: many companies. Benfleet doesn't have a proper supermarket at all. The Lidl and Iceland are miles from the train station.

Tealblue

spezial wrote: »

stick to the topic and let my ability to take a loan for myself
just answer to my question if such movement is beneficial and don't assume about my ability to get a loan

You won't get a loan against what you hope will be an income stream from rent. Lenders aren't that daft.

spezial

ognum wrote: »

Is this you buisness plan?

that's a business plan turning into a nightmare
why, you find it impossible?

spezial

is there any place to discuss with serious experienced buy-to-let owners/investors?

Elfbert

You're in a place filled with experienced buy-to-let owners and mortgage advisors.

If you have the cash and can buy in a good area at a decent price, then perhaps it would be a good investment. But if you scrimp on the original purchase, need a deposit, need a mortgage, have to pay the service charges, get some voids because it's not a great area, have some repairs to do, need to replace a boiler/roof etc. then it could be a very bad investment.

You're asking an impossible question at the moment, because no one knows anything about your circumstances.

At the very least, you'll need a 25% deposit, an achievable rental value of 125% or so of the mortgage repayment AND the ability to cover any void periods from your own earnings. And some independent financial advice, I'd say!