Letting out a house in Plymouth anyone?

sledgehammer_2

Hi all, great site.

I was wondering if anyone had experience of the many letting agencies in Plymouth.

We're thinking of letting out our 3-bed semi in St Budeaux and moving back to Suffolk where we have stacks of family to help us with our impending baby. Not 100% a financial decision overall, but finding the right life balance if you know what I mean!

Anyway, there's loads of agencies out there and we've met with 4 already. There's a few student types who basically ram your house up to the max and then repair the damage each summer. Not for us.

I'm tempted by Northwoods guaranteed income as it equates to a 'regular' 12% management agency filling the house for 11 of 12 months. If the regular agent filled it for a whole year it would generate more income, but if it stands empty for literally 5 weeks or more then we're getting less.

Any experiences, good or bad, would be greatly appreciated.

SquatNow

They are lettings Agents.

Thus they are almost certainly crooks.

Rent guarantees from LAs arn't worth the paper they are printed on.

before you start, do the maths... how big is your mortgage and what is the average rent for a property like yours in your area.

sledgehammer_2

Currently the situation is this:

Current Mortgage is 100k on house that cost 105k in Dec 06. Expires this Dec. House now worth 118kish so we should be just about OK on the LTV. Current repayments are £592 a month.

House has been on market since November, but....you know the story! :rolleyes:

BTL mortgage would be £603pm + the relevant insurances. Letting value is between £600-650. Take away management fees and we'd get between £480 (guaranteed) to £540 a month.

We would be subsidising it each month before any repairs are paid for. Self management isn't really an option 330 miles away.

Rent in Suffolk (£470) + subsidy on our house (£150) = £620. Not a lot of difference to staying where we are.

The reason we're so keen to move is the non-financial benefits. We'd be trading 3 relatives 90 miles away for 10 relatives within a mile. How much that would save in childcare and support - ???

Dream situation is sell at a reasonable price, but with junior set to make an appearance in November we're looking at our other options.

neas

Im from plymouth :P, St budeaux isnt the best of areas so not sure what rental yield you'd be looking at.

Varies alot in plymouth as stoke, deveonport and st budeaux not the bestest of areas .

Why not just sell the house and move to suffolk?

Just add that im a potential FTB and am waiting out the 'storm' so to speak so am renting also atm .

Also if its furnished/non-furnished makes a big difference... they also say

sledgehammer_2

No it's certainly not the greatest area. "Up and coming" is the correct definition.

Decent house though and 3 different agents have quoted us £600-650.

Like I say, financially it doesn't really work out very nicely unless we sell.

SquatNow

I think you've answered your own question here.

You're planning on renting out at a LOSS of £150 BEFORE repairs, voids, etc.

Allow £100pcm to cover the extras and your looking at a £3000 loss a year, and that's before including the fact that prices are dropping 2.5% a month.

You house is loosing £2500+ a month in value.

You're opening up a world of hurt here. Just flog the place for whatever you need to cover the mortgage, (less any savings you have) and make a fresh start.

sledgehammer_2

SquatNow, you speak the truth. Thank you. Phone call to the EA in the morning to drop the price.

Problem comes if that doesn't work....Can anyone recommend a good stockist of time machines?

SquatNow

sledgehammer wrote: »

SquatNow, you speak the truth. Thank you. Phone call to the EA in the morning to drop the price.

Go as low as you can. I'de be preparedto get an unsecured loan if I had to.

The last thing you want to do is chase the market down.

sledgehammer wrote: »

Problem comes if that doesn't work....Can anyone recommend a good stockist of time machines?

Check ebuyer, they seem to sell everything else.

PRINCESSKERRY

sledgehammer wrote: »

SquatNow, you speak the truth. Thank you. Phone call to the EA in the morning to drop the price.

Problem comes if that doesn't work....Can anyone recommend a good stockist of time machines?

hi Sledgehammer

I too am local, I know people say it often enough but reduce it they are correct and it will sell.
I have just sold my house, 3 bed semi also but in a different area I'm sorry to sold my agents no doubt overpriced it from the start I was looking at Rightmove daily and wanted to stay ahead of all the other 3 bed semis in the area. I sold after 6 weeks and I only needed to reduce the price once but was prepared to do it again and again if needed.
I dont have to actually move at present but wanted to put the house on the market to get my children settled in another house before they would be of school age.
Realistically we should have put it on the market last year.
My second viewer bought so I know firsthand how slow it is down here, likewise the pics they took of my house weren't great I eventually took my own and changed everyone they had likewise I added extras of rooms I felt should have had pictures.
I also did my own viewings though that wasn't by choice.
Overall we took a 8% drop on our house from the original price it went on the market at, I priced ours around £500 cheaper then all other bog standard 3 beds in the area not including places like NP and BB. I priced similar to some houses in the SB area though there are a few in that area that are particularly run down so I didn't drop to below them.
If you follow this and ensure your EA's stick it in the paper and promote it then you should at the very least get a little flux of viewers as your house would have fell into there price bracket and hopefully a offer.:D

budget_counsellor_shaz

We also have a student house in Plymouth. My children stay there and we rent out the other rooms.

We live in Surrey which is some distance from the house in Plymouth and we manage it ourselves. We have a long list of phone numbers to ring if there are any problems.

'BTL mortgage would be £603pm + the relevant insurances. Letting value is between £600-650. Take away management fees and we'd get between £480 (guaranteed) to £540 a month.'

You said that the rent was guaranteed

However, if I was you i would sell........

All the best whatever you decide to do

Shaz

sledgehammer_2

Thanks for all the help guys.

Went on in October with slightly duff agents at £119,950

Dropped it in December to £117,950

Switched agents in April (loooong tie-in with 1st agent) who have been getting people in at least.

Dropped to £112,950 in May.

With junior only 5 months away with gone as low as we can afford, price dropped this morning to £99,950 :eek: RightMove price changes at midnight.

http://www.rightmove.co.uk/viewdetails-17355601.rsp?pa_n=1&tr_t=buy

Plan B is now to stay put, not let out. Thanks for ALL the advice. It's hard to find the ideal answer when it doesn't exist, but I'm happy we're doing all we can at the moment.