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  • FIRST POST
    • Dhrucku
    • By Dhrucku 9th Apr 18, 1:59 PM
    • 127Posts
    • 21Thanks
    Dhrucku
    Looking at BTL property ***Advice needed***
    • #1
    • 9th Apr 18, 1:59 PM
    Looking at BTL property ***Advice needed*** 9th Apr 18 at 1:59 PM
    Hi,


    Im currently looking at buying a property to rent out in my area but am looking for some guidance and help amongst this community.

    Myself and OH have been able to set aside some money (25k) as a deposit for a house within Gillingham. We have our own property which we mortgage as usual but are looking to invest in something else such as the three bed terraced housing near us which is possible to pick up for around 200kish with work needed to be done.

    We would of course prefer to buy cheap, do a bit of work to it (funds are available to us up to for a three bed terrace) and then put it up for rent and cover the mortgage of it from the renters. We both earn over 40k in our jobs and therefore are in top bracket in terms of tax paying.

    Is there anything here you think Ive missed in my very basic logic and things I really should think about before making a jump for a new property.

    NOTE: We are not looking to move from our current mortgaged house for at least another 4 years
    Last edited by Dhrucku; 10-04-2018 at 3:47 PM.
Page 2
    • Quizzical Squirrel
    • By Quizzical Squirrel 10th Apr 18, 9:36 PM
    • 169 Posts
    • 4,553 Thanks
    Quizzical Squirrel
    I'm looking at that illustrative property to which you linked and I'm already envisaging your weekly Monday morning email inbox.

    Don't worry though because the letting agent will have told you that your tenants are "a really nice family" and that they have good tradesmen on call. They won't rip you off, no siree.
    • Smodlet
    • By Smodlet 10th Apr 18, 10:04 PM
    • 3,004 Posts
    • 6,036 Thanks
    Smodlet
    That first one is vile, isn't it? I would not put a dog there.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Cakeguts
    • By Cakeguts 11th Apr 18, 12:10 AM
    • 4,363 Posts
    • 6,241 Thanks
    Cakeguts
    To get 1000 per month you have to pay around 265k to buy the house. http://www.rightmove.co.uk/property-for-sale/property-63775816.html here is one for sale in the road where you found the one at 1000 per month.

    The one in Jeffries Road the two bed is not suitable for a rental at any price simply because there is no parking near it. The road has double yellow lines on both sides. The chances are that you wouldn't be able to let it at all unless the rent was very very cheap. You certainly won't get 1000 per month for a house in that area because of the parking problems. The Jeffries Road house will only attract tenants who can't afford anything better.

    You are not going to get 1000 per month for a house costing 170k simply because the 170k houses are not going to be in an area where the well paid choosy tenants are going to want to live. The more attractive the area the more choice of tenant you get. If you want to get 1000 per month you have to buy a house in an area where someone who is prepared to pay that much in rent would be happy to live. So for 1000 per month you are looking at spending between 250k and 300k.

    For 700 you will need to buy a house where there is at least parking. A couple sharing are likely to have a car each and won't want a house with double yellow lines outside. Basically that house is cheap because it is difficult to sell because of the parking situation. For that same reason it will be very difficult to let.

    I can tell you now that a house with off street parking in a nice area will be easier to let than a cheap one in a not very good area. The more attractive the house the more tenants will want it so the less hassle you have in letting it.

    There you are this is what lets for around 1000 per month http://www.rightmove.co.uk/property-to-rent/property-72044210.html I would expect this house to cost around 250k to 300k to buy. Tenants are looking for a house with off street parking and walking distance to a station.
    • Cakeguts
    • By Cakeguts 11th Apr 18, 12:17 AM
    • 4,363 Posts
    • 6,241 Thanks
    Cakeguts
    That first one is vile, isn't it? I would not put a dog there.
    Originally posted by Smodlet
    Who is going to want to live there? There are double yellow lines outside and it needs a small fortune spent on it to bring it up to modern living standards. The reason that is it 170k or thereabouts is because it is difficult to sell in that position. You aren't going to get working professionals wanting to live there at any price.

    The other one is in a road where the houses are marketed at over 260k. You can't beat the market. You can't buy a cheap house in a cheap road and expect to get wealthy good tenants. For that you have to buy houses in affluent areas.
    • csgohan4
    • By csgohan4 11th Apr 18, 7:43 AM
    • 4,426 Posts
    • 2,776 Thanks
    csgohan4
    OP you really need to do more realistic sums with void periods as well. BTL is no longer the money making scheme it used to be. Have you looked at the new tax changes for the BTL as well??


    Look at investing your money somewhere else or save up for a house to live in
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Out, Vile Jelly
    • By Out, Vile Jelly 11th Apr 18, 10:31 AM
    • 3,961 Posts
    • 13,499 Thanks
    Out, Vile Jelly
    Advice? If you do go down this route, try living in the house yourselves for at least a couple of weeks, even if that means camping out in the house as we did with an airbed and fold up chairs. We discovered a whole heap of little things which needed fixing on top of what we already knew about. We were able to get them sorted before a tenant moved in. If we had just paid for trades to go in and do the electrical, plumbing, decorating and flooring work we wanted doing, we wouldn't have found the issues. We would then have had a whole load of calls from the tenant about problems. He would have driven us nuts with all the complaints. We'd have driven him nuts with all the things that needed fixing. As it was the tenant moved in and we haven't heard a peep of a problem in 5 months.
    Originally posted by Slinky
    This is the single most sensible thing I have ever heard about being a LL!
    They are an EYESORES!!!!
    • Crashy Time
    • By Crashy Time 11th Apr 18, 10:47 AM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    https://www.property118.com/201718-tax-returns-accident-waiting-happen-landlords/
    • Smodlet
    • By Smodlet 11th Apr 18, 12:59 PM
    • 3,004 Posts
    • 6,036 Thanks
    Smodlet
    This is the single most sensible thing I have ever heard about being a LL!
    Originally posted by Out, Vile Jelly
    If only all LLs had Slinky's integrity, their reputation would be very different to the one they have now.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Crashy Time
    • By Crashy Time 12th Apr 18, 10:30 AM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    OP you really need to do more realistic sums with void periods as well. BTL is no longer the money making scheme it used to be. Have you looked at the new tax changes for the BTL as well??


    Look at investing your money somewhere else or save up for a house to live in
    Originally posted by csgohan4

    Problem for most people is that banks don`t really lend for other investments.
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