Guys, looking for some advise.. Looking to do my first Buy to Let.. This 1 bed apartment is few doors away in a 20 year old coldasac - in a quiet location. It comes over 2 floors & with a garage.. Up for £220k and decorated to a high standard. I was speaking to the agent, they said rental income is £950 achievable with 5% letting charge. ?? I hope my numbers are correct House Price £220,000 Deposit @ 25% £55,000 Mortgage Amount £165,000 Intrest Rate (Intrest Only) 3.74% (rough idea from a broker i was speaking to) Years Intrest £6,171 Monthly Payments £514 Rental Income £950 ------------- Now i bought my 2 bed house without a garage for £220k 4 years - thinking will this 1 bed go up in value and if this is a good buy? One of my neighbors sold a 3 bed with a garage for £365 I can see not much going wrong, maybe boiler (as i had mine fail) - Any thoughts?
Id be amazed if you can get an interest only mortgage.... They don't do them any more? Particularly on buy to let? This will obviously up your mortgage payments significantly... Don't forget stamp duty. Legal fees Finder fee for letting agent? Insurances - buildings a must, possibly contents Have to set up a landlord account Gas safety certs etc It's a flat, is it freehold? If lease then you will have free holder fees and management company fees, these vary massively depending on who it's with. General maintenance - renters generally don't look after things as well, and even careful tennants generate wear and tear etc. Tbh, if you break even you doing ok to start with, but certainly a good long term thing as rents rise and mortgage decreases you'll be quids in. Plus the (hopefully) increase in market will see your investment rise in value. If it pays for itself and works out a good investment, or costs you a little but gain a garage (assuming this is your plan), I'd say it's with it surely! Oh and don't forget capital gains tax that might be due
Dont forget Mr O has raised stamp duty by another 3% on buy to let, it doesnt sound much but it is due to the way they now work it out
On Buy to Let they do Interest Only Property is free hold. i think i just needed to be told again! Need to make an investment - but wanted a regular return.. started looking at other options House - is looking like a long term investment!
Taxes, insurance and dodgy tenants. Can you afford the payments if the place is empty for a while? As Lozzy said stamp duty is being hiked for BTL, and the amount you can offset against taxes is being reduced. Tenants trashed our annex which cost us a lot to put right, over £10k and was a lot of down time without rent. Current tenant is absolutely fantastic but we are still out of pocket.
Interest only still OK on BTL, but remember you will have to repay the loan in full at the end of the term As others have said increase in stamp duty as from April 2016 and changes to interest/expense relief in 2017 Gas safe cert required annually (Britsh gas will normally combine this with a gas service contract) You will also need to register into a landlords deposit protection scheme. Get yourself landlords insurance, public liability insurance and basic contents policy If you are going to have a lettings company deal with the rental they SHOULD take care of all legal requirements/documentation etc Yield of 6% is ok Good luck
Better to upgrade your own house then do rent a room , 4k a year income before you pay any tax and no tax if you sell your house if its your main residence- didnt the government just announce increases in "buy to let " ?
Can't expand my house..its at the limit...new builds are bloody small! I guess prices are going up...stupid will they stop any time soon... You can just about pick up a 3 bed house for near £300k..in some of the crapper areas in London.. In the area I live..£450k+ for a small 3 bed!
You can buy a 4 bed detached house in my area for £190k. Rents out at £800 ish a month. You don't have to buy a property close to you if you have a decent agent and contacts to look after it. Nottinghamshire BTW
totally agree - htink it makes more sense to buy in commuter belt locations. little more for your money and decent rent to young professional type.
Buy one in South Cheshire Sam, just off the M6 corridor and the HS2 is coming right through Crewe! My company does Property Maintenance round these here parts!
Zopa? I was thinking London...as in 5 - 10 years the property price would have gone through the roof.. They are building new flats in Islington...area still a dump..but 1 beds flats starting at £750k!! Like wtf!
Nice area been looking at houses up that way...you get so much more for ur money! I did want to sell up and get a mortgage fees house house with my man cave and some land...but its a big move..have a wife and 3 kids to consider...
