Advice on rental market prospects

BigStevenC

Hi All

I need to know whether now is a good time to enter the rental market? I am looking for one property to buy, house value worth circa £100-£120k and a three bedroomed family home. I am considering a cash purchase based on accrued savings, as an investment, to provide a better return on my savings. This is a scary prospect but I'm hoping it will be worth it...can anyone advise if this would be a sensible consideration in terms of financial climate and demand that is out there? Many thanks for your time in reading this.

booksurr

since it is illegal for anyone to give investment advice unless they are a registered Financial Adviser overseen by the FCA, what exactly are you looking for in terms of answers?

anyone who replies is merely guessing, as is an FA for that matter... since you give no detailed info upon which to base an answer

AnotherJoe

So, based on the rental income of ???? and costs of ????? and an income tax position of ????? and your pension of ?????? and other income of ???????? compared to your savings and investment income of ???? I reckon you should definitely ......

flashg67

Well, ignoring all other factors, people will always need a roof, some will always want, or need to rent. However, the current government is steadily making it less financially attractive to be a private landlord.

Do some research both on the responsibilities and costs of being a LL and the likely financial cst to you bsed on your current income etc, and decide if you want it for income or long term capital gain (or both)

I have two buy to lets bought in the last 18 months, and I haven't regretted it yet, but I haven't made my first million yet either...

Cakeguts

No one can tell you what the market is for rented property where you want to buy. It sounds as if you have already made the first mistake by choosing the kind of property before you have researched your market.

Not every property is a suitable rental property. If you want good tenants you have to buy the kind of property good tenants are looking for.

Windofchange

I am assuming given you want a three bed house for 100 - 120k we aren't talking London / South East? If it is a purely cash purchase then the rent (minus any fees) will be all profit. However, it's not going to take much to upset the apple cart on somewhere pulling in 4 - 600 quid a month in rent, or 5 - 7k a year as a guess. Voids, boiler repairs, !!!!!! who trash the place and steal the copper, negative equity which is pretty likely in my view in the coming years - well it's already happened in large areas of the country.

Or 100k put into stocks and shares. Not 100% safe but more manageable perhaps. It is unfortunately the mentality of many that property is a one way bet. That will / is changing...

cashbackproblems

you can earn 5%+ in a bond (or more in equities) which is more than the rental income you will get, but with BTL you have taxes to pay, problem tenants, rip off agent fees, extra stamp duty etc

BTL is finished and especially for cash buyers doesn't make sense.

csgohan4

Is a house the only way for investment purposes??

tim123456789

cashbackproblems wrote: »

you can earn 5%+ in a bond .

only on ones with a risk of total loss of capital


anything the slightest bit secure and you struggle to get over 2%


you really should not be putting your "life" savings in such investments for an extra 3%


these people probably regret their decision to do so


http://www.telegraph.co.uk/investing/bonds/providence-mini-bond-investors-at-risk-of-losing-everything/


tim

Crashy_Time

Totally pointless at this stage. Put 50k in premium bonds and buy the stock market dips via a low cost index tracker (set up a £50 p.m payment and go in a few hundred or thousand at a time when Trump/Brexit/Whatever rocks the boat)

Crashy_Time

csgohan4 wrote: »

Is a house the only way for investment purposes??

To many people that has been the mind-set for years, media did their part in re-enforcing this, but slowly people are getting their heads round why it might not be the path to riches they thought.