Buy to Let advice

[JimM169]

Hi all

We've got around £60k to put into a buy to let property but being new to this we're not sure what to go for. We're based up in Nottingham so presumably could do student lets for the University, a family type house for city workers or get something in the Peak district or near the coast for holiday lets.

Any advice on what the pro and cons are for each sort of property and which is likely to give the best return on investment would be much appreciated. Also if anybody has any links to some useful websites, books etc on Buy to Let please do post them

Cheers

[dmitsi]

Good choice of 3/4 bed places around Nottingham for 130-140, so if you can find slightly more deposit you could get two properties to rent to students. Benefits of renting to students are guarantors on the rents, not expecting a show home, regular change of tenant giving opportunity to get back in and do any improvements without having to work around tenants.

Some people wouldn't do it but it's one of the surest rental choices in decent uni city and can give a better yield. You could find a four bed house with two reception rooms. Renting to students can mean it's a five bed and you get more money.

[rotarymazda]

Watch out for the new rules about the deductability of mortgage interest. This is pushing many people into the 40% bracket and making BTL not viable.

This doesn't apply if you buy without a mortgage.

[northwest monkey]

dmitsi said:

Renting to students can mean it's a five bed and you get more money.

For less months of the year.

If the OP is new to being a Landlord, being a student landlord is probably not the best / easiest place to start.

[BoRED S2upid]

University lets can be a big hassle.

[chrisispringles]

northwest monkey said:

For less months of the year.

Not necessarily, that really depends on the market for them. I graduated from Reading in July and all the student houses are on 12 month lets, there are no 9 month lets available.

[13m]

JimM169 said:

Hi all

We've got around £60k to put into a buy to let property but being new to this we're not sure what to go for. We're based up in Nottingham so presumably could do student lets for the University, a family type house for city workers or get something in the Peak district or near the coast for holiday lets.

Any advice on what the pro and cons are for each sort of property and which is likely to give the best return on investment would be much appreciated. Also if anybody has any links to some useful websites, books etc on Buy to Let please do post them

Cheers

Don't buy a £60k house for cash. Chances are you won't like the tenants you'll get in such a property.

Be careful also following advice above about student lets. The student market in Nottingham is under a bit of pressure from regulation and competition from purpose-built student stock. Nottingham City Council makes no secret of the fact that it dislikes private landlords in general and student landlords in particular.

Do get some proper financial advice because it will be increasingly easy to come unstuck with the higher rate tax relief changes that have been announced.

Also be aware that regulation is heading your way and every level of government thinks that private landlords need to be taxed to death. At the risk of sounding old, BTL isn't what it was.

I am a landlord in Nottingham, by the way.

[eldar]

13m said:

Don't buy a £60k house for cash. Chances are you won't like the tenants you'll get in such a property.

Be careful also following advice above about student lets. The student market in Nottingham is under a bit of pressure from regulation and competition from purpose-built student stock. Nottingham City Council makes no secret of the fact that it dislikes private landlords in general and student landlords in particular.

Do get some proper financial advice because it will be increasingly easy to come unstuck with the higher rate tax relief changes that have been announced.

Also be aware that regulation is heading your way and every level of government thinks that private landlords need to be taxed to death. At the risk of sounding old, BTL isn't what it was.

I am a landlord in Nottingham, by the way.

Seconded. HMG increasingly see BTL owners as a bit of a golden goose.

There is still reasonable money to be made, but the risk is a little higher.

[Superbad]

What about Student BTL such as these? The cost of buying seems quite only

Where you get a decent guaranteed yield after fees and as far as I can see, no hassle with tenants. I read elsewhere that a lot of foreign buyers are picking up these kinds of properties.

http://www.residential-estates.co.uk/#!midlands/c2...

I don't have anything to do with the company in question. I found them on Righmove while researching BTL properties and found it interesting.

[Sheepshanks]

13m said:

Be careful also following advice above about student lets. The student market in Nottingham is under a bit of pressure from regulation and competition from purpose-built student stock. Nottingham City Council makes no secret of the fact that it dislikes private landlords in general and student landlords in particular.
....

I am a landlord in Nottingham, by the way.

I looked at buying in Nottingham when one of my kids was there a dozen years ago and it didn't make sense then - the potential seemed to be fully priced into suitable properties. Even at that time the purpose built blocks were starting to be put up.

Got talking to one student landlord who had a dozen properties but he'd been acquiring them during the 90's so had got them at much lower prices. That year (I think it would have been 2005/6 my daughter's last year there) he said was the first year he'd had all his properties let.