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Buying a Flat to Rent Out then Retire in
Karmo
Posts: 16 Forumite
Hello.
This is my first post . I did post the same yesterday but it hasnt shown up on the board .
I am considering buying a flat to rent out . I live and work overseas with a small salary , and have about 65,000 pounds in the bank , after 30 years hard work , to spend on a flat in my native UK . I intend to rent it out till I can retire there in about 10 years .
Is this a feasible idea ? I am aware that 65 k is not a great deal for a property and that after tax and repairs , letting agent fees etc , there may not be much left over for me . Im not too concerned about that as at least I would have some bricks and mortar for the future . As long as I could pull in a few hundred quid a month to help out with living expenses . I have never bought property before and am currently researching what seems a bit of a minefield . Thank you for any ideas or suggestions you may have .
This is my first post . I did post the same yesterday but it hasnt shown up on the board .
I am considering buying a flat to rent out . I live and work overseas with a small salary , and have about 65,000 pounds in the bank , after 30 years hard work , to spend on a flat in my native UK . I intend to rent it out till I can retire there in about 10 years .
Is this a feasible idea ? I am aware that 65 k is not a great deal for a property and that after tax and repairs , letting agent fees etc , there may not be much left over for me . Im not too concerned about that as at least I would have some bricks and mortar for the future . As long as I could pull in a few hundred quid a month to help out with living expenses . I have never bought property before and am currently researching what seems a bit of a minefield . Thank you for any ideas or suggestions you may have .
0
Comments
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Becoming a landlord is not an easy option. You'll have a whole raft of responsibilities and I assume you'll be looking to hand management over to an agent. However, you'll still need to manage the managing agent! Not all do a good job.
You also need to consider the cost implications of void periods when the flat is empty. Then there is the issue of a tenant potentially not paying rent. You'll then have to take them to court to evict. This is expensive and time-consuming and it is likely you'll be unable to recover the missing rent. How will you manage the cost of renovations if your tenant trashes the place? This can run into thousands of pounds. How will you manage all these issues from abroad?
I think you need to do a lot more research. There are enough 'accidental' landlords on these boards that clearly don't have a clue.0 -
are you aware that lease extensions and service charges and repair requests are not cheap? how about new boilers?
Can you absorb the cost of evicting the tenants, getting bailiffs for those that don't pay? Likely in the thousands if not more
There are better platforms for investing than bricks and mortar now."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Also check if the tenant has to file a tax return when paying rent.
https://www.gov.uk/tax-uk-income-live-abroad/rent
They may well think this is too complicated to be worth taking on, unless maybe your agent deals with it instead.There is no honour to be had in not knowing a thing that can be known - Danny Baker0 -
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
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