Hello all , I'm looking for pointers / advice from people who have, or who are involved in buy to lets I've recently become able to fund my first buy to let, my budget is 100k ( cash buy ) I live in Newport South Wales, Newport is currently on the up property wise, as it's nestled between Bristol & Cardiff, both of which have substantially higher property prices My budget will fund a respectable two bedroom property, generating £500 - £550 a month Just looking for pointers & advice from those with experience Steve
Or you could buy 2 Desmosedici and rent them out at a bargain £500 a week each, netting you £4000 a month..
I had one for 10 years in York on a mortgage - took my money out and put it into rare bikes. For 10 years I rented to the same person - and only went round once a year - no hassle, no repairs other than 1 boiler breakdown that my mate fixed in an hour. A work colleague rented for 2 or 3 years and ended up with a trashed house and a years unpaid rent. You need to be lucky! I have realised more capital value increase and potential profit with the bikes - The FT said rare cars are the No 1 profitable investment now and it applies to bikes too on a smaller scale. Property can be a great investment if you hit the correct part of the cycle and ride the wave - we are not at such a stage now in my opinion.
As has been said you need to be lucky. I have had good and bad tenants but I have always got my money.:wink: Don't get too precious about the property and do the minimum to keep it rentable. I spent 10k getting the house to a good standard when I bought it and just give it a lick of paint when needed. I now let to students as the rental income is double the income from a family let. £1200 pcm but I expect a bit of repair work each year.
Get names of previous landlords, check up on the tenants, even have a look at their social media accounts if need be, most people now share their exploits to the world so you can see what kind of person you are getting. Ive had a tenant for 18 years and she is great, needs help changing the odd bulb or battery in the smoke alarm but thats no mither. Ive had others that where a nightmare and did runners leaving the flats in a state! One flat looked great on inspection, having looked closer every cupboard and drawer was full of rubbish...actual rubbish that he couldnt be ared taking out to the bins! Dont decorate to your tastes.....trade magnolia or white throughout, keep it nice and simple, that makes it easier to give it a lick of paint should it need it!
Do you have good friends / family that rent? If so, ask them if they would move to your buy to let, let them be part of buying process, choosing the house / location etc I know renting to friends can be risky, but, at least you know them and know they will look after the place.
i think you need to let her sit in the dark until she learns because that's just ridiculous! [emoji6] Sent from my iPhone using Tapatalk
You could just invest your £100,000 and get £500 a month interest with no worries and the money is easily accessible if you need it in a hurry. Steve
should have waited for first tenant to move out then spend that kind of dosh as it its then "Tax Deductible"
Location, location , location. Im Cambridge and have a few . Never empty , the demand is massive so tenants know if they get kicked out they'll struggle to get another easily and also prices are still rising so you'll gain on house price as well as rental income. There can be downside of course, as others say if you do have poor tenants you'd better brace yourself . For a newbie to it all I would advise you to go through a letting agent and let them manage if for you . Yes it'll cost 10% , plus tax, and also consider rental protection just in case. It can go very well , then its great but you only want a couple to go wrong and it soon loses the appeal to it all. For me , the better location then the less the risks , but of course then your outlay is greater to start off. What I spend on one house in Cambridge my brothers buys 3 for in Lowestoft!!
Where can you get 6% p.a. interest these days?? You'd be doing well to get 4% on share dividends or bonds (other than junk bonds), but for cash deposit anything more than 1% is high at present.
P2P lending, I know as I have been doing it for three years. So I'm speaking from personal experience. Steve
Read a bit on that recently, they said how supply was outstripping demand and that would push down the percentages. Sent from my iPhone using Tapatalk
