Buying a Flat to Rent Out

newlandlord555

Its perfectly true buddy. 25 years of hard earned cash going into this. Obviously the reason to vet tenants is there. Obviously I wont rent to DHS or people with bad credit no job etc. If an inventory is done they will be responsible for any damage to the flat . I see most people as being decent( except on here it seems) especially university and medical students which is my market. 

newlandlord555

300 quid a month and a flat of my own to come back to at the end. A lot of people on here dont pay attention to the details Im giving you . I DONT NEED a mortgage. So even if I only pocket 50 quid  a month its better than the bank interest and safer than the stock market. a I get a flat too. 

macman

OP, it's already been demonstrated to you in great detail that the best return you are likely to get will be around 4%. Furthermore, your £500pm gross rental will not all be paid to you. Since you live outside the UK, basic rate income tax will be deducted either by the tenant or agent and paid direct to HMRC under the Non-Resident Landlord Scheme. So that's 20% of your gross income gone already. Secondly, you say that eventually you will return to the UK and want to live in the property. Have you any idea how long this might take? Tenants in Scotland have more security of tenure than in England, and the minimum notice you'd need to give would be 84 days. If the tenant sits tight, then you have to evict them, which could easily take as long again (at present, all evictions are suspended in the UK for whatever cause).
Finally, where do you get the idea that you can only earn 0.25% in the bank? Plenty of fixed rate savings accounts pay 1%, National Savings Income Bonds pay 1.16%. But you'd be much better off just putting your £90K into the stock market using low-risk investments that should yield about 3%. £20K pa of this can be saved in an ISA wrapper, every year, so tax-free. The hassle that you would put yourself through to earn that extra 1% (maybe) is just not worth it. 

newlandlord555

Thank you . As I am in the UK for  a few months a year anyway I wont have to pay 20% tax. I have 12,600 tax free. So lets sat 300 a month in my pocket after agents fees , legal bills , repairs, etc.  1 % from the bank at best on 80,000 is 66 pounds a month . How can 66 pounds a month be better than 300 pounds a month ??? Even if at the very worst they dont pay rent and I have to evict them I still have  a house at the end of it. Beginning to wonder if you guys work for the banks and trying to fool me . Seems a no brainer 66 in the bank versus 300 plus  a flat.Explain that .

newlandlord555

If the rent income is 500 a month. Does my taxable income start at 500 or does it include the agents fee, repairs etc?

Comms69

newlandlord555 said:

Thank you . As I am in the UK for  a few months a year anyway I wont have to pay 20% tax. I have 12,600 tax free. So lets sat 300 a month in my pocket after agents fees , legal bills , repairs, etc.  1 % from the bank at best on 80,000 is 66 pounds a month . How can 66 pounds a month be better than 300 pounds a month ??? Even if at the very worst they dont pay rent and I have to evict them I still have  a house at the end of it. Beginning to wonder if you guys work for the banks and trying to fool me . Seems a no brainer 66 in the bank versus 300 plus  a flat.Explain that .

Cool go for it. Then when tenant doesnt pay rent; you illegally evict them, and they sue you and the court seizes your flat; your £80k will be gone. 

newlandlord555

One vets ones tenants thoroughly. If tenant doesnt pay you serve them notice and evict them. Yes it takes time but thats one of the hazards of doing business with any client . Anyway we have ways of dealing with tenants who steal money from us . Hahahah

newlandlord555

I will NOT waste any more valuable time with this lousy site.

newlandlord555

11 commenters . Only 1 had anything encouraging to say the rest negatin=ve negative negative . Fair enough advise of the pitfalls but this is ridiculous. Pity about Brexit but I imagine the Europeans will be well rid of you moaning English nannies . 

Comms69

newlandlord555 said:

One vets ones tenants thoroughly. If tenant doesnt pay you serve them notice and evict them. Yes it takes time but thats one of the hazards of doing business with any client . Anyway we have ways of dealing with tenants who steal money from us . Hahahah

So it IS a business?....