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  • FIRST POST
    • Hotglove
    • By Hotglove 9th May 18, 4:12 PM
    • 9Posts
    • 1Thanks
    Hotglove
    Buying and letting
    • #1
    • 9th May 18, 4:12 PM
    Buying and letting 9th May 18 at 4:12 PM
    We are planning to buy a house with a BTL mortgage which, in the first instance, we will rent out.
    Eventually we hope to sell other property, pay off the BTL mortgage and move in ourselves.
    currently looking for advice as to what kind of property attracts the best tenants, we are mainly looking at 4 bed detached houses.
    We like several different styles of house so would be interested in the features that appeal most strongly to the "ideal" tenant.
    We already have a 3 bed terraced house and a 2 bed maisonette which are let, but the new venture will be mortgaged quite heavily so there is less room for mishaps.
    All comments welcome.
    Last edited by Hotglove; 09-05-2018 at 4:14 PM. Reason: spelling
Page 1
    • Cakeguts
    • By Cakeguts 9th May 18, 4:14 PM
    • 4,366 Posts
    • 6,249 Thanks
    Cakeguts
    • #2
    • 9th May 18, 4:14 PM
    • #2
    • 9th May 18, 4:14 PM
    Depends on the area.
    • need an answer
    • By need an answer 9th May 18, 4:25 PM
    • 434 Posts
    • 513 Thanks
    need an answer
    • #3
    • 9th May 18, 4:25 PM
    • #3
    • 9th May 18, 4:25 PM
    A lot will depend on the area but also if you buy a house with multiple bedrooms you may find that its not always occupied by a single family and you often get requests for sharers.

    Personally as a LL I stick to 3 bed properties or lower as the 4th bedroom doesn't always attract a higher rent or a more settled tenant.

    In the area you are looking to purchase is a 4 bed detached house likely to rent easily.How many of them are in your local area for rent on somewhere like RM.You should be able to see how long something takes to rent by monitoring a site like that for a few weeks.Turnaround can sometimes be slower on a larger house and the voids need to be considered.

    As an example in the area I rent properties there are currently 17 2 bed properties on RM all of which seem to turnover quite quickly,within a couple of weeks.There are 4 4 Bed properties that have been listed at least a month.

    If you are looking to move to a bigger house and think the way forward is to buy something now and rent it out I'm not sure that's the best way to approach it.
    Extra stamp duty for a start will also increase the cost so if funds will be tight and leave little room for voids then I would possibly rethink the forward plan


    Interested in knowing your definition of the ideal tenant for you.....
    Last edited by need an answer; 09-05-2018 at 4:44 PM.
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    • Hotglove
    • By Hotglove 9th May 18, 4:56 PM
    • 9 Posts
    • 1 Thanks
    Hotglove
    • #4
    • 9th May 18, 4:56 PM
    • #4
    • 9th May 18, 4:56 PM
    Ideal tenant pays rent, looks after property, does not upset neighbours and stays for at least 2 years :-)
    There is a chance that the final move would be within 2 yrs, so, as I understand, it the additional duty could be reclaimed.
    We have a cash deposit which will not earn much interest sitting in the bank, so if the rental was self-sufficient, or earned a small profit, we would be looking to the increase in property value to protect our capital.
    Our area has been recently listed as among the top 5 in the UK for property growth.
    • need an answer
    • By need an answer 9th May 18, 5:03 PM
    • 434 Posts
    • 513 Thanks
    need an answer
    • #5
    • 9th May 18, 5:03 PM
    • #5
    • 9th May 18, 5:03 PM
    Ideal tenant pays rent, looks after property, does not upset neighbours and stays for at least 2 years :-)
    There is a chance that the final move would be within 2 yrs, so, as I understand, it the additional duty could be reclaimed.
    We have a cash deposit which will not earn much interest sitting in the bank, so if the rental was self-sufficient, or earned a small profit, we would be looking to the increase in property value to protect our capital.
    Our area has been recently listed as among the top 5 in the UK for property growth.
    Originally posted by Hotglove
    so you don't want your ideal tenant then....if they stay more than 2 years you cant reclaim the stamp duty.
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    • Crashy Time
    • By Crashy Time 9th May 18, 5:05 PM
    • 6,080 Posts
    • 2,352 Thanks
    Crashy Time
    • #6
    • 9th May 18, 5:05 PM
    • #6
    • 9th May 18, 5:05 PM
    Has a bank offered you a BTL mortgage?
    • need an answer
    • By need an answer 9th May 18, 5:20 PM
    • 434 Posts
    • 513 Thanks
    need an answer
    • #7
    • 9th May 18, 5:20 PM
    • #7
    • 9th May 18, 5:20 PM
    Our area has been recently listed as among the top 5 in the UK for property growth.
    Originally posted by Hotglove
    but the question isn't around good property growth yours is specifically to find a house that you want to live in in a few years time.

    property growth and rental sectors are two different things and in all honesty the fact that somewhere is a property hotspot doesn't automatically follow that the rental tenant you want will be there to rent the property.

    Apparently I live in one of the top 5 places to live in the UK and the rental market has seen one of the biggest and fasting growing markets,but as I said earlier if you don't have the property that matches the rental market it doesn't matter how many top 5's you look at!

    I cant help but think your desire to purchase is less about getting another rental and more about potentially finding your forever family home.

    They are 2 very different things and probably shouldn't be mixed.
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    • Pixie5740
    • By Pixie5740 9th May 18, 6:08 PM
    • 12,114 Posts
    • 17,061 Thanks
    Pixie5740
    • #8
    • 9th May 18, 6:08 PM
    • #8
    • 9th May 18, 6:08 PM
    I agree, you seem to have two different goals here. One is to find a 4-bedroom detached house that you would like to live in yourselves one day and the other is to find a 4-bedroom detached property that will attract the best tenants but not for more than 2 years.

    Why is buying the 4-bedroom house to live in when you are ready to live in it not an option? Why the rush? I'm not sure you would be eligible for a refund in the higher rate of SDLT if you go ahead with your plan. It depends on what other property you plan on selling to pay off the BTL mortgage and if you can successfully demonstrate that you always intended the 4-bedroom property to be your main residence.
    • Cakeguts
    • By Cakeguts 9th May 18, 7:07 PM
    • 4,366 Posts
    • 6,249 Thanks
    Cakeguts
    • #9
    • 9th May 18, 7:07 PM
    • #9
    • 9th May 18, 7:07 PM
    Ideal tenant pays rent, looks after property, does not upset neighbours and stays for at least 2 years :-)
    There is a chance that the final move would be within 2 yrs, so, as I understand, it the additional duty could be reclaimed.
    We have a cash deposit which will not earn much interest sitting in the bank, so if the rental was self-sufficient, or earned a small profit, we would be looking to the increase in property value to protect our capital.
    Our area has been recently listed as among the top 5 in the UK for property growth.
    Originally posted by Hotglove
    To be listed in the top 5 for growth the growth must already have happened otherwise they wouldn't know. This means that you have missed the chance. So from now on it will probably be flat.
    • Hotglove
    • By Hotglove 9th May 18, 7:35 PM
    • 9 Posts
    • 1 Thanks
    Hotglove
    Not a rush
    15 years ago I bought a BTL house with a £20k deposit, if I had left the £20k in an investment account it would have grown a bit (I am sure someone on here will be able to quote a typical yield)
    The house has grown in value by £170k and the total rental profit is just under £100k
    The projected 4 bed retirement home doesn’t have to perform anywhere near as well, but it would just be reassuring to know that it is waiting in the wings.
    Perhaps mixing business and a notional peace of mind is not ideal.
    So, not a rush, but one does not get younger as time marches.
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