Thinking of buying some property for letting...advice please.

tom9980

Rjhsteel wrote: »

Once our current fixed mortgage deal runs out next year, we are seriously considering selling our home, renting somewhere and buying some buy to let properties.

Would you do this? We would have around £100k to start.

I wouldn't do it with your money let alone mine. Frankly if you cant be bothered to read the links provided you are not cut out for being a Landlord.

markin

Rjhsteel wrote: »

Once our current fixed mortgage deal runs out next year, we are seriously considering selling our home, renting somewhere and buying some buy to let properties.

Would you do this? We would have around £100k to start.

You could pay more in rent than you make, unless you are renting a 2 bed in a bad area as your home, and your rental is a large 4 bed, unlikely for 100k.

Cakeguts

Rjhsteel wrote: »

Once our current fixed mortgage deal runs out next year, we are seriously considering selling our home, renting somewhere and buying some buy to let properties.

Would you do this? We would have around £100k to start.

No it isn't enough.

babyblade41

From someone who has done this in both industrial and private with no finance necessary, there are many good reasons why I a now finished with the whole industry

with your budget I'd certainly stay well clear .. it will be a recipe for disaster .

You can vet tenants as much as possible and in one of mine seemed to have a relatively stable tenant for 10 years, then a partner change

I wouldn't venture back in for all the tea in china after a career in the whole property industry. I was luckier as my solicitors dealt with most of it until I scaled down most of the industrial and just left a few private residential

I still have one as the tenants are long term, excellent and improved the property greatly , they look after it and it's their home , but that isn't always the case

steampowered

Most people who are saving for the long term are better investing into a pension or stocks & shares ISA than into buy-to-let. It's lower risk and much more tax efficient - plus with a pension you get a big chunk of tax relief.

Rjhsteel wrote: »

Once our current fixed mortgage deal runs out next year, we are seriously considering selling our home, renting somewhere and buying some buy to let properties.

This is a really really bad idea. You would be paying a higher interest rate on a BTL mortgage; require a higher deposit; have less security; and pay income tax on the rent from your BTL.

AdrianC

Rjhsteel wrote: »

Had a conversation with my brother in law about buying some cheap property and letting out.

There is no such thing as cheap property. There's good value property - but that's rarely cheap.

Show us what sort of numbers you're thinking are feasible... Purchase price, raw yield, mortgage costs, management costs, maintenance costs, voids...
Show us the kind of property you're thinking of, and what sort of tenant you think it'll attract.

Crashy_Time

AdrianC wrote: »

There is no such thing as cheap property. There's good value property - but that's rarely cheap.

Show us what sort of numbers you're thinking are feasible... Purchase price, raw yield, mortgage costs, management costs, maintenance costs, voids...
Show us the kind of property you're thinking of, and what sort of tenant you think it'll attract.

Yet. The end of FOM combined with a drop in sentiment towards BTL are a good combination for a lot of flats dropping in price to sell IMO.

00ec25

Crashy_Time wrote: »

Yet. The end of FOM combined with a drop in sentiment towards BTL are a good combination for a lot of flats dropping in price to sell IMO.

but crashy, you have no idea what drives prices except your blind belief that they must go down otherwise you will never be able to buy a place of your own because for the entire time you and your house price crash cronies have been on these boards you have always failed to buy in the belief that tomorrow it will be cheaper.

meantime, countless people have just got on with their lives...

Rjhsteel

AdrianC wrote: »

There is no such thing as cheap property. There's good value property - but that's rarely cheap.

Show us what sort of numbers you're thinking are feasible... Purchase price, raw yield, mortgage costs, management costs, maintenance costs, voids...
Show us the kind of property you're thinking of, and what sort of tenant you think it'll attract.

Looking at property in N.Ireland. Yield would be 8-10%. Brother in law currently has 2 similar properties. Managed by a company.

AdrianC

Rjhsteel wrote: »

Looking at property in N.Ireland. Yield would be 8-10%. Brother in law currently has 2 similar properties. Managed by a company.

8-10% raw yield...?

What's his actual all-in return, averaged over a few years?

And why can't he give you advice?