got the keys today for my first buy-to-let

tucbiscuit

10% deposit


even at £500 it will be decent as a return, other very similar houses have rented for £500

dolce_vita

assuming an I/O mortgage at an interest rate of 6% over 25 years, £390 per month would buy you a house for approx. £80k

Do £80k houses where you are command a rent of £500 per month?

tucbiscuit

yep, you've got the figures right roughly, got mine for £82,000

the area is the new town in Runcorn, not the most amazing area, but not terrible either if you know the few bits to avoid

an example would be; this is renting @ £495 (apparently this one got snapped up) http://www.rightmove.co.uk/viewdetails-15511348.rsp?pa_n=3&tr_t=rent

similar house for sale http://www.rightmove.co.uk/viewdetails-8040921.rsp?pa_n=1&tr_t=buy



there seems to be a dearth of rental properties in that particular area, especially 3 bedders

tucbiscuit

they're on the same road btw

real1314

dolce, how would the term affect an interest only mortgage?
£390 will get you about £78k by my reckoning, add on the deposit and you're at £88k
£500-525 seems a good return for that sort of property in the current market, but then again it depends on the location.

dolce_vita

Sorry real, I got a bit mixed up in my own reasoning there.

OP - sounds like you've got a good deal but don't forget the rent you want and what you can get are 2 different things. Best wishes to you.

flower_72

The same is true north of Manchester. On my street (and the streets around) terraced houses get sold for just under £80 000 and I know a few of them going for rent for £450 - £500.
This is the very reason why I bought here (as well as not being able or willing to get a bigger mortgage). As my job means I could have to relocate for a few years, I wanted to ensure the rent I could get for the property would more than cover my mortgage payments.

tucbiscuit

ok, dolce, if you are into btl, then runcorn, widnes, warrington, st-helens, wigan etc. are some of the places left where you can get a decent return even when buying now

dolce_vita

tucbiscuit wrote: »

ok, dolce, if you are into btl, then runcorn, widnes, warrington, st-helens, wigan etc. are some of the places left where you can get a decent return even when buying now

I'm not really interested in buying any more for now and besides it's too far away from me because I like to manage my own properties.

That area must be one of the few in the country where you can get any sort of return on the rental income.

This is something that has recently been discussed on HPC and makes interestin reading - see HERE

Again, best wishes to you, hope you don't have too much trouble with tenants.

reformedEffortMaker_2

CONGRATUALATIONS to tucbiscuit, sorry I meant Landlord tucbuscuit

I hope you get some lovely, low maintenance tenants