Buying a Flat to Rent Out

newlandlord555

I know about them because I watched a 10 minute video on youtube today. Seemed to cover it all. The agent will i guess thoroughly vet the tenant before letting to them and also get a sizeable deposit from them and some sureties . But I dont really trust the law courts in this country. Im all for protecting tenants from unscrupulous landlords but landlords also need protection . 

newlandlord555

What I have in my favour though are 3 things .
1/ I have the capital ready and dont need  a mortgage.- so its all profit.
2/ Im not living in country so dont need  a home 
3/ Im only doing it small scale ie 1 flat . I dont try to make big money from this . Just a fair investment .

grumiofoundation

newlandlord555 said:

I know about them because I watched a 10 minute video on youtube today. Seemed to cover it all. The agent will i guess thoroughly vet the tenant before letting to them and also get a sizeable deposit from them and some sureties . But I dont really trust the law courts in this country. Im all for protecting tenants from unscrupulous landlords but landlords also need protection . 

Ready to go then.

The agents won't take a 'sizeable' deposit they will take the maximum legally allowed (or YOU will end up getting sued by the very law courts you don't trust). 

newlandlord555 said:

What I have in my favour though are 3 things .
1/ I have the capital ready and dont need  a mortgage.- so its all profit.
2/ Im not living in country so dont need  a home 
3/ Im only doing it small scale ie 1 flat . I dont try to make big money from this . Just a fair investment .

3) yes that is a common advantage to do things on a small scale

AdrianC

newlandlord555 said:

But I dont really trust the law courts in this country.

Starting a business here seems an odd move, then, given that you live elsewhere.

newlandlord555

AdrianC said:

newlandlord555 said:

But I dont really trust the law courts in this country.

Starting a business here seems an odd move, then, given that you live elsewhere.

Im not starting a business. Did you not read my OP ?. Im buying a flat to rent out for  a few years before living there myself. My  point being that if the law allows tenants to screw over landlords like that then they are NOT really worthy of respect. 

grumiofoundation

newlandlord555 said:

AdrianC said:

newlandlord555 said:

But I dont really trust the law courts in this country.

Starting a business here seems an odd move, then, given that you live elsewhere.

Im not starting a business. Did you not read my OP ?. Im buying a flat to rent out for  a few years before living there myself. My  point being that if the law allows tenants to screw over landlords like that then they are NOT really worthy of respect. 

You are starting a business.

Edit: the fact you seem like you will run it badly doesn’t make it not a business. 

[Deleted User]

Definition of a business - A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Comms69

newlandlord555 said:

AdrianC said:

newlandlord555 said:

But I dont really trust the law courts in this country.

Starting a business here seems an odd move, then, given that you live elsewhere.

Im not starting a business. Did you not read my OP ?. Im buying a flat to rent out for  a few years before living there myself. My  point being that if the law allows tenants to screw over landlords like that then they are NOT really worthy of respect. 

Yes people who disagree with laws often find themselves on the wrong side of it. 

Your 'safe' investment could very quickly become an asset seized by the courts to compensate your tenants for your unlawful behaviour. 

Hasbeen

newlandlord555 said:

AdrianC said:

newlandlord555 said:

But I dont really trust the law courts in this country.

Starting a business here seems an odd move, then, given that you live elsewhere.

Im not starting a business. Did you not read my OP ?. Im buying a flat to rent out for  a few years before living there myself. My  point being that if the law allows tenants to screw over landlords like that then they are NOT really worthy of respect. 

Perhaps another 10 minute youtube video would help clarify that?

But in the meantime?

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1020

lisyloo

newlandlord555 said:

As I have 90,000 pounds saved up I plan to buy a flat to let out , earning about 500 pounds a month . I have not done this before and understand that there are dangers to be aware of . Is it feasible ? I have no debts and believe that I will not have to pay tax on my earnings as it will be such a small amount. Am I doing a sensible thing or is there a better way to invest ?
Thank you for your ideas .

Have you worked out the return after agency fees, repairs, insurance etc.

and compared it with the returns on other investments that require doing very little?

There are numerous risks with property e.g. voids, tenants from hell, evictions take a long time (especially during a pandemic), being at the whims of goverment policy e.g. no evictions. That can be justified if the return is there is to compensate.

Is the return there to compensate for the hassle/risks involved?

Putting money into other investments can involve very little effort and some have tax benefits e.g. 25% tax free lump sums on pensions (all legislation can be changed).