Buy to let .. Not sure We're brave enough now?!

Gingernutz_2

So the house next door has come up for sale at a good price,we always said we would like to buy it to rent out,and eventually knock it through into one house one day.We don't have a pension so thought this could be a wise investment.
After reading articles on new buy to let stamp duty.tax etc .. Really not sure now.
I will be having a chat with accountant this week but would be grateful to hear your opinions .. Thankyou 😊

theartfullodger

If you're not sure you are brave enough then this business is not for you.

To be a landlord you have to have the financial AND emotional reserves to cope with the tenant-from-hell (or agent-from-hell..) who doesn;t pay for 7 months whilst you keep paying the mortgage, legal fees to evict & repairs: Repairs?? Oh yes, don;t repair & judge will quite rightly side with tenant & give them more time...

And 'phone calls from tenant-from-hell about the leaking toilet at 23:37 Saturday:

Never rent to close buildings, or to friends or relatives...

How old are you?? No pension?? Not even state pension? You must have no NI records then: Now, why would that be...

Marvel1

I have to ask as it's next door, would you be the "nosy" type to say look over their garden and think, the grass needs cutting I better tell them?

I'm trying to think as a tenant would they want the landlord next door to them watching their every move and intruding their quiet enjoyment.

G_M

Do you really wat to be next door to your tenants?

HappyMJ

Gingernutz wrote: »

So the house next door has come up for sale at a good price,we always said we would like to buy it to rent out,and eventually knock it through into one house one day.We don't have a pension so thought this could be a wise investment.
After reading articles on new buy to let stamp duty.tax etc .. Really not sure now.
I will be having a chat with accountant this week but would be grateful to hear your opinions .. Thankyou 😊

I would buy it only for the purpose of making it one property if that's what your eventual intention is.

I really would not recommend property investment unless you can take all the emotion out of it and make it a viable business.

I don't give my tenants my phone number avoiding the calls at 23.37 on a Saturday evening. They have my address which they can serve notices. If you are next door to your tenants it's much more likely they'll knock on the door. I doubt my tenants would ever bother coming to my property to wake me up to fix something. They have the gas emergency number and I've left instructions to turn off the water supply if required. If it burns down I'm sure I'll hear something about it before they inform me.

MortgageMamma

Hi

I think its a bad idea to buy a house joined onto yours to rent out, unless you are renting it to someone you know well who will respect you boundaries and not be a problem.

From a tenants perspective not many would want to live next door to their landlord as it basically removes their right to "enjoy their property without disturbance" from you. I personally would hate it, I would be on pins all the time.

What sort of area do you live in and what sort of street is the property situated upon? could it be used as a holiday let or a B&B? just ideas as I appreciate I know nothing of your daily lives.

AdrianC

The stamp duty increase is - or should be - a bit over six-months worth of rental income. If that's sufficient to stop the numbers working, then the sums were borderline in the first place.

BtL should not be a short-term investment. You should expect the numbers to work out worse than expected - because of bad tenants, maintenance, voids, whatever. If you can't cope with those, it's the wrong investment.

squeeks

If I were to do this, I would use an agent to handle the property and possibly a solicitor as a go between to the agent. Not sure how I would handle the land registry, but if you are being a landlord, you could set up a company to buy the property.

I wouldn't want the tenant to know I was their landlord and would want to funnel everything through the agent. That way you would be able to be a regular neighbour to your tenant. It would also allow you to keep an eye on the agent and keep a sympathetic ear to your neighbour should there be any problems with the agent.

marksoton

squeeks wrote: »

If I were to do this, I would use an agent to handle the property and possibly a solicitor as a go between to the agent. Not sure how I would handle the land registry, but if you are being a landlord, you could set up a company to buy the property.

I wouldn't want the tenant to know I was their landlord and would want to funnel everything through the agent. That way you would be able to be a regular neighbour to your tenant. It would also allow you to keep an eye on the agent and keep a sympathetic ear to your neighbour should there be any problems with the agent.

Seems like a lot of subterfuge. And falls apart when the LL's postal address is written on the tenancy agreement.

The whole thing sounds like a bad idea to me.

theartfullodger

squeeks wrote: »

If I were to do this, I would use an agent to handle the property and possibly a solicitor as a go between to the agent. Not sure how I would handle the land registry, but if you are being a landlord, you could set up a company to buy the property.

I wouldn't want the tenant to know I was their landlord and would want to funnel everything through the agent. That way you would be able to be a regular neighbour to your tenant. It would also allow you to keep an eye on the agent and keep a sympathetic ear to your neighbour should there be any problems with the agent.

The tenant is entitled to landlord's real, actual, address: Criminal offence if not provided within 21 days !

See ss1 & 38 of LL&T Act 1985.
http://www.legislation.gov.uk/ukpga/1985/70/section/1
&
http://www.legislation.gov.uk/ukpga/1985/70/section/38

Gingernutz_2

Thankyou very much for all your opinions,gave me a lot to think about.