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  • FIRST POST
    • JohnLock
    • By JohnLock 2nd May 18, 8:05 PM
    • 39Posts
    • 5Thanks
    JohnLock
    50k buy to let
    • #1
    • 2nd May 18, 8:05 PM
    50k buy to let 2nd May 18 at 8:05 PM
    I've got 50k in bank.
    Looking at buying a buy to let - never done it before.
    just wondering if 50k is enough.
    I've been looking at those terraces around Stoke, Durham, and Leeds.
    they're going for about 40k, and rent at about 450 per month.

    I'd like to buy one as an investment because houses are going up and might a nice little earner.
    Just wondering if it's more hassle than it's worth?
    Will the tennants be messy and will I have to pay for boilers and all the maintenance?
    Last thing I want to do is buy the house and it cost me more money than i get in rent?

    How much could I make realistically speaking?
Page 2
    • Crashy Time
    • By Crashy Time 3rd May 18, 8:59 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    This thread (from 2 months ago) demonstrates that the OP hasn't got the first clue about property ownership, let alone the complexities of becoming a landlord.


    https://forums.moneysavingexpert.com/showthread.php?t=5804353
    Originally posted by LilElvis

    What % of BTL people do though?
    • Edi81
    • By Edi81 3rd May 18, 9:13 PM
    • 509 Posts
    • 458 Thanks
    Edi81
    The self publishing must be going well!
    Hope you!!!8217;re remembering to put aside money for tax and NI before becoming a landlord!
    • diggingdude
    • By diggingdude 3rd May 18, 10:38 PM
    • 363 Posts
    • 441 Thanks
    diggingdude
    Are you mad! Everyone that uses public transport smells of wee!!! (Or custard creams).
    Originally posted by davemorton
    I just had to smell one to see if I like it or not. A biscuit not a bus passenger
    House Deposit - Target 20000 April 2019
    Current Savings - 10225 13121.22 14621.22 16021 17296
    • Crashy Time
    • By Crashy Time 4th May 18, 8:40 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    Better off sticking it in premium bonds.
    • buggy_boy
    • By buggy_boy 4th May 18, 9:30 PM
    • 525 Posts
    • 389 Thanks
    buggy_boy
    Better off sticking it in premium bonds.
    Originally posted by Crashy Time
    Although I have maxed out premium bonds as part of a cross section of investments, the return on it is quite poor... It is a lot better if you are a 40% tax payer as its tax free.
    • Crashy Time
    • By Crashy Time 8th May 18, 2:41 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    Although I have maxed out premium bonds as part of a cross section of investments, the return on it is quite poor... It is a lot better if you are a 40% tax payer as its tax free.
    Originally posted by buggy_boy

    Still a better punt than BTL at the moment IMO.
    • westernpromise
    • By westernpromise 8th May 18, 2:47 PM
    • 4,263 Posts
    • 5,531 Thanks
    westernpromise
    Ummm wouldn't it be a better world if we could get rid of all mums with kids.., particularly those who started off in relationships and ended up as single mums? Or those (like me) with kids with a disability that couldn't be forseen when younger and in a relationship.., and god forbid, end up on benefits as a carer. The dregs of society. I wasn't years ago. But I am now.., supposedly.

    But disabled people are a better risk? As long as they are genuine of course. Single mums with kids can't be genuine? Apparently lol. Apparently there's a difference.

    Please don't be a Landlord. Invest the money instead.

    YES landlords are expected and legally have to pay for icky repairs like boilers breaking. How can you not know that if you plan on making an 'informed' decision on whether its worth being a LL?
    Originally posted by deannatrois
    The worst disabled are those ones who have one leg, go "Aaaaar, Jim laaad" all the time and have a parrot on their shoulder. If you don't allow pets you can usually weed these ones out.
    • Crashy Time
    • By Crashy Time 8th May 18, 2:48 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    Stick it on the lottery.
    • buggy_boy
    • By buggy_boy 8th May 18, 3:25 PM
    • 525 Posts
    • 389 Thanks
    buggy_boy
    Still a better punt than BTL at the moment IMO.
    Originally posted by Crashy Time

    At the moment no, BTL is still a better return however I would agree BTL is a lot more work and potential risk... If you only have 50k then no don't go into BTL, if its part of a wider investment portfolio then yes.
    • buggy_boy
    • By buggy_boy 8th May 18, 3:27 PM
    • 525 Posts
    • 389 Thanks
    buggy_boy
    Stick it on the lottery.
    Originally posted by Crashy Time
    I would say stupid financial advice but then you gambled on prices falling yrs ago and lots big time so you probably would have been better off in hind sight putting it on the lottery.
    • Brock_and_Roll
    • By Brock_and_Roll 8th May 18, 4:00 PM
    • 854 Posts
    • 849 Thanks
    Brock_and_Roll
    50k on a house? Madness!!!


    I have bought an entire neighbourhood in Mogadishu for 40k. Apparently, I am looking at a yield of 7% before costs/fraud/repairs/FX/bomb damage etc etc !!!
    • Crashy Time
    • By Crashy Time 8th May 18, 4:04 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    I would say stupid financial advice but then you gambled on prices falling yrs ago and lots big time so you probably would have been better off in hind sight putting it on the lottery.
    Originally posted by buggy_boy

    I had no interest in house prices really until the 2008 crash, or just before, so you have your wires crossed there somewhere I`m afraid.
    • Crashy Time
    • By Crashy Time 8th May 18, 4:08 PM
    • 6,350 Posts
    • 2,405 Thanks
    Crashy Time
    At the moment no, BTL is still a better return however I would agree BTL is a lot more work and potential risk... If you only have 50k then no don't go into BTL, if its part of a wider investment portfolio then yes.
    Originally posted by buggy_boy

    BTL has no part in a sensible "Wider investment portfolio" now. You are letting your own bets cloud your judgement IMO.
    • jimbog
    • By jimbog 8th May 18, 4:24 PM
    • 713 Posts
    • 1,240 Thanks
    jimbog
    Still a better punt than BTL at the moment IMO.
    Originally posted by Crashy Time
    Better keep that to yourself. Wouldn't want your landlord to hear you
    The problem with quotations on the internet is that you can never verify their authenticity - Abraham Lincoln
    • buggy_boy
    • By buggy_boy 8th May 18, 9:02 PM
    • 525 Posts
    • 389 Thanks
    buggy_boy
    BTL has no part in a sensible "Wider investment portfolio" now. You are letting your own bets cloud your judgement IMO.
    Originally posted by Crashy Time
    BTL has become more difficult but as a spread and long term investment only and as long as you put enough deposit in and its done in a company structure it can be a very good way especially considering current interest rates, if rates increase to 4-5% then that would tip the balance.
    • PhilE
    • By PhilE 8th May 18, 10:45 PM
    • 349 Posts
    • 221 Thanks
    PhilE
    Many factors in this. If you could predict which areas are to become gentrified, you'd strike a gold mine.

    If the property is in good condition and prices on the rise, then you have nothing to lose. Things can and do go wrong, but do your research, get a good deal and BTL can be a good investment. You could always buy now, sell later and use the profit to invest in a bigger property/flat for rent. You'll know the ropes a bit more by then also.
    • bris
    • By bris 9th May 18, 12:58 AM
    • 7,791 Posts
    • 6,776 Thanks
    bris
    They don't rent to good tenants for about 450 per month they rent to the tenants that no one else wants because they stop paying the rent or wreck the house. For a good tenant paying 450 per month you need to pay around 100k.
    Originally posted by Cakeguts
    Talk about stereo typing a neighbourhood.


    What a lot of tosh you just wrote. For one thing 100k doesn't get you good tenants, a million can't even do that. There are good and bad tenants whatever the price range.


    OP tenants aside, a 50k property is not going to rise in value, it's in a neighbourhood that will attract vey little growth.


    Yes you need to maintain the property, boiler, electrics, everything. By the time you pay for maintenance, tax on the rent (if applicable) etc it will take you about 15 years to get your money back. Do you really want the hassle of all the trouble this could and will bring.


    One bad tenant, and you will get at least one and the repairs will go through the roof, think hard about what your 50k can do elsewhere.
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