I want to buy a property to let, preferably a house, where do I start?

GeddiGuy

I want to buy a property that I can let it to break even on the mortgage, so for example...

£400 per month mortgage
£400 per month coming in in rent

Any more rent would be brilliant.

Then once the mortgage is paid, I would be making free money. Sort of...

Where do I start? I don't mind where the property is, preferably in the UK, but US would be OK. What is the best area?

What are the risks of doing this?

How can a guarantee that the rent will be paid? What happens if it isn't?

Thanks!

beecher

Is this a wind up?

If not, do you have a deposit of at least 15% and are there any properties worth £70-£80,000 or so which would get a rental income of £400? Where I live the flats are worth £120,000 and rental is only £500 at a push.

GeddiGuy

No, this is not a wind up, I'm a complete newbie at this

Would it be possible to borrow that 15%?

I'm not worried about how big the mortgage is, I just want the rent at the end.

beecher

GeddiGuy wrote: »

No, this is not a wind up, I'm a complete newbie at this

Would it be possible to borrow that 15%?

I'm not worried about how big the mortgage is, I just want the rent at the end.

Well you should be worried about how big the mortgage is, as the rent is unlikely to cover it, particularly on top of the loan for the 15%. I think you've missed the boat on this one - the likelihood of you making 'free money' out of it is extremely limited.

snoopy78

GeddiGuy wrote: »

No, this is not a wind up, I'm a complete newbie at this

Would it be possible to borrow that 15%?

I'm not worried about how big the mortgage is, I just want the rent at the end.

Does not quite work out Mortgage payment £400 rent £400, pay off mortgage in 25 years.

Tax man takes off his share, 40% if you are a high rate payer of the Capital repayments of the mortgage. So say that you manage to repay £2000 off you mortgage (the othere £2800 is interest) then you'll be taxed £800 (assume higher rate tax pay for ease).

There are so many other tax implications but just don't have time to go through them, capital repayments is the most important and could leave you paying out of your own pocket.

red_bertie

GeddiGuy wrote: »

No, this is not a wind up, I'm a complete newbie at this

:rolleyes: hmm so it would seem .. how about doing a bit more specific research.

Welcome Geddi, good hunting!

RB

Gorgeous_George

If you cannot work out the risks yourself, it's not a game you should be playing.

Life's too short for me to go into detail with advice. Most has been given before so you may wish to do some inital research from previous posts and on other websites.

I wish it was a wind-up. It scares me that people who are so naiive can even think of becoming landlords.

GG

maninthestreet

Fortunately, you will be saved from own naivety, as no lender in the current climate would lend you any money to buy a house, buy-to-let or otherwise, as you appear to have no deposit.

Alias_Omega

do you watch the news.?

owitemisermusa

Hey, fix your signature!

Anyway, you've been given good advice - open your eyes very wide indeed and look before you leap!

dunstonh

Lets just make this easy for you

1 - you cant do it as you have no deposit
2 - you shouldnt do it because its the wrong time to get into the BTL market unless you are a builder or an experienced landlord who has found a bargain