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  • FIRST POST
    • robbie.r
    • By robbie.r 3rd Jan 18, 10:26 PM
    • 10Posts
    • 0Thanks
    robbie.r
    Starting in buy to lets while living abroad
    • #1
    • 3rd Jan 18, 10:26 PM
    Starting in buy to lets while living abroad 3rd Jan 18 at 10:26 PM
    I have been living and working abroad for a number of years and have managed to save some money. I am going to continue working abroad but my savings are doing very little and I have been reading up and researching on buy to let for a number of years. Iím in a position where I have around 70,000 + to invest. This would be enough to get a two or three bedroom house in one of the Northern towns in England where I am from, and though it would be at the lowER end of the market it would not be quite so low ( I saved more and waited longer so that I could avoid doing that.

    I have heard of the pitfalls and I know investing in BTL would not be hassle free. I would not have the pressure of a mortgage, on the downside I know I would be tying my money into a house and that some of that money would go to an agent for the first few years while I learned the ropes. BTL seemingly has a worse reputation than it used to have and Iím wondering what advice people like you would have.

    How much money should one set aside for repairs emergencys? Would 10-15%of rent normally suffice?

    Do 3 bedrooms market better than two?

    Is rent insurance worth taking out?
Page 1
    • 00ec25
    • By 00ec25 3rd Jan 18, 10:30 PM
    • 6,256 Posts
    • 5,782 Thanks
    00ec25
    • #2
    • 3rd Jan 18, 10:30 PM
    • #2
    • 3rd Jan 18, 10:30 PM
    for as long as you are living abroad you will need a UK address at which you can be contacted otherwise the tenant can legally refuse to pay rent. Unless you have a friend/parent able to do that, you will have to use an agent forever, not just until you "learn the ropes"

    what markets is what is in demand. You cannot say 3 is better than 2 as it obviously depends on the location and demand.
    • troffasky
    • By troffasky 3rd Jan 18, 10:43 PM
    • 48 Posts
    • 26 Thanks
    troffasky
    • #3
    • 3rd Jan 18, 10:43 PM
    • #3
    • 3rd Jan 18, 10:43 PM
    Iím wondering what advice people like you would have.
    Originally posted by robbie.r
    You could do a lot worse than reading the threads on this forum started by landlords.
    • robbie.r
    • By robbie.r 3rd Jan 18, 11:55 PM
    • 10 Posts
    • 0 Thanks
    robbie.r
    • #4
    • 3rd Jan 18, 11:55 PM
    • #4
    • 3rd Jan 18, 11:55 PM
    for as long as you are living abroad you will need a UK address at which you can be contacted otherwise the tenant can legally refuse to pay rent. Unless you have a friend/parent able to do that, you will have to use an agent forever, not just until you "learn the ropes"
    Originally posted by 00ec25
    That would not be a problem.
    • Doozergirl
    • By Doozergirl 4th Jan 18, 1:08 AM
    • 24,918 Posts
    • 68,312 Thanks
    Doozergirl
    • #5
    • 4th Jan 18, 1:08 AM
    • #5
    • 4th Jan 18, 1:08 AM
    If your rent is £400 a month (something like this will equate to Local Housing Allowance for a two bed in a deprived town) and you save £60 a month for repairs, that!!!8217;s £720 a year. It isn!!!8217;t enough in the long term, especially if you!!!8217;re not buying a brand new house and maintenance is expected from day 1.

    Plus you have to pay an agent to manage (I use that term loosely) the property because you are abroad.

    These Northern towns with low house prices also have a lot of poor tenants who often don!!!8217;t pay rent or fall into arrears. Properties to let are also 10 a penny; turnover is high, competition is high, voids can be long, especially when you!!!8217;re not there to ensure everything is tiptop between tenants to attract new ones. You!!!8217;ll be spending that maintenance money in decorating between every tenant, plus you HAVE to account for voids because they will happen because your nice tenant is traumatised by their neighbours or your tenant simply won!!!8217;t pay you.

    If these people could afford £70k to buy their own houses, don!!!8217;t you think they would?

    My family member!!!8217;s experience of living in such a house in such an areas involved food fights in the street, regular drugs raids, fire bombings, and *several* families being collected for their Jeremy Kyle appearances at varying times. The procession of idiots moving in and out never stopped.

    These houses have apparently high returns for a reason - they cost a fortune. If you actually care about the conditions your tenants live in (and the long term value of your own asset) then you won!!!8217;t make much at all and it won!!!8217;t equal the headache it gives you. It wouod be bad enough being local, let alone a plane journey away from an area you have no local support in or real knowledge of.
    Last edited by Doozergirl; 04-01-2018 at 1:15 AM.
    Everything that is supposed to be in heaven is already here on earth.
    • Cakeguts
    • By Cakeguts 4th Jan 18, 1:29 AM
    • 4,143 Posts
    • 5,780 Thanks
    Cakeguts
    • #6
    • 4th Jan 18, 1:29 AM
    • #6
    • 4th Jan 18, 1:29 AM
    Start again. In northern towns what kind of housing do people aspire to own? If they could afford it wouldn't they all want to live in a detached house? So if they can't afford detached wouldn't they go for semi detached?

    So what sort of person do you think will want to rent a £70k two or three bed terraced house for £350 or £400 per month? You also have to think about what kind of area a 2 or 3 bed £70k house is going to be in. What sort of person is going to want to live there?

    I am a landlord and we let in a northern town. For hassle free letting you will need to spend more than double what you are proposing. You need hassle free letting because you are not in the country.

    So think of the most expensive part of the area that you know and work out how much a 3 bed modern semi with a drive and ensuite bathroom on a popular estate where houses sell overnight and work out how much it will cost you to buy a house there. You have got to have walking distance to train travel to the nearest city for commuting to work as well as walking distance to shops. My estimate for a house like this would be anything from £160k to 200k depending on area.

    Remember you will shortly not be allowed to let any property that doesn't meet an E on the insulation. So old terraced houses might need to be insulated to bring them up from a G or F.

    Do not buy ex council houses. No one aspires in northern England to live in an ex council house. They are all trying to escape from them.
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