1st Buy to Let
Discussion
Hi all,
Not sure this is in the right place but here goes!
I'm looking at my 1st Buy to Let investment property, I'm based in the Staffordshire area and houses are how do we say.... reasonably priced! Therefore I am currently looking at a 2 bed mid terrace which will rent out between £450 - £500 per month
Has 2 big reception rooms, bathroom upstairs, rear yard etc.
It is in need of usual windows / doors, some plaster work, has some damp in the bathroom ceiling area, so will need to allow for that. The house will be in the region of £50K and I'm allowing about £8K for whats need doing...
Anything I need to keep an eye out for, and my thoughts are a management company for the 1st 6 - 12 months to take the hassle away and enable me to continue my obsession of surfing on Pistonheads....
What are the thoughts to the % yield, can anyone offer advice - true cost of double glazing windows, doors etc.
Does it sound like a reasonable return?
Thanks for reading.
Not sure this is in the right place but here goes!
I'm looking at my 1st Buy to Let investment property, I'm based in the Staffordshire area and houses are how do we say.... reasonably priced! Therefore I am currently looking at a 2 bed mid terrace which will rent out between £450 - £500 per month
Has 2 big reception rooms, bathroom upstairs, rear yard etc.
It is in need of usual windows / doors, some plaster work, has some damp in the bathroom ceiling area, so will need to allow for that. The house will be in the region of £50K and I'm allowing about £8K for whats need doing...
Anything I need to keep an eye out for, and my thoughts are a management company for the 1st 6 - 12 months to take the hassle away and enable me to continue my obsession of surfing on Pistonheads....
What are the thoughts to the % yield, can anyone offer advice - true cost of double glazing windows, doors etc.
Does it sound like a reasonable return?
Thanks for reading.
i'd bite your arm off for a 10% yield but my properties are in Greater London and 5% is fairly normal down here.
as for the costs for works you really need to check the local trades as that will differ greatly depending on your location and any 'mates rates' you are able to secure for the work.
if you are mortgaging the property some of the lenders will possibly take a dim view if the property needs stacks of work as they like it to be 'ready' to let immediately. How they define this is down to the valuers discretion though.
good luck with it.
as for the costs for works you really need to check the local trades as that will differ greatly depending on your location and any 'mates rates' you are able to secure for the work.
if you are mortgaging the property some of the lenders will possibly take a dim view if the property needs stacks of work as they like it to be 'ready' to let immediately. How they define this is down to the valuers discretion though.
good luck with it.
You might struggle getting a mortgage if there's loads of work required.
Also anything you spend on bringing it up to spec is capital costs so can't be offset against income. I'm always amazed when people quote low numbers to renovate, redoing a terrace roof here costs £5k never mind everything else.
Also anything you spend on bringing it up to spec is capital costs so can't be offset against income. I'm always amazed when people quote low numbers to renovate, redoing a terrace roof here costs £5k never mind everything else.
Thanks for the reply, the building appears to be overall structually sound, needs some renovation in terms of windows and general painting - a minor crack in the internal wall which doesnt seem too severe!
I would imagine the work can be completed and be on the market in 3-4 weeks. I have a 50K mortgage ready to go. So With a maximum 10K spare cash to do what else is needed.
Any experience with a management company - pros & cons?
Any additional tips for a 1st timer landlord would be helpful?
I would imagine the work can be completed and be on the market in 3-4 weeks. I have a 50K mortgage ready to go. So With a maximum 10K spare cash to do what else is needed.
Any experience with a management company - pros & cons?
Any additional tips for a 1st timer landlord would be helpful?
landlordzone has a load of info
My current strategy is young profs rather than families, turnover is less so it costs me less in wear&tear plus agents fees. Looking to put an RPI clause in the next one so that the rent automatically goes up each yr. I sign up to an AST and then let it go to a PST after 12mths.
Do what you have to do to get it rented, if its rented after beginning April then you have a while to read up on tax.
My current strategy is young profs rather than families, turnover is less so it costs me less in wear&tear plus agents fees. Looking to put an RPI clause in the next one so that the rent automatically goes up each yr. I sign up to an AST and then let it go to a PST after 12mths.
Do what you have to do to get it rented, if its rented after beginning April then you have a while to read up on tax.
Personally (and were all different) I went for a young family on the thinking that if they settle in the area get the child into a local school etc... they could be living there for years with limited hastle. No pets is a must have or not have, I like to meet the tennants you get a feeling about someone from a first meeting.
Ryjam said:
Whats the thoughts on avoiding capital gains tax?
The rules will no doubt change by the time I come to sell but I would live in each one for the minimum term. Hopefully the kids will have gone so it will be just be me and the wife. There's plenty of nice 1900 double garage/workshop/room above type buildings around the same location, would be great to pick up one to complete the plan !!
Bit of a Coincedence but I'm coming down to Stoke in the morning to look at properties as I've a contract to house 58 tenants.
Any tips on which areas to avoid buying in?
I've done my own research but local knowledge always helps.
We could have a chat if you need any advice in starting out.
Any tips on which areas to avoid buying in?
I've done my own research but local knowledge always helps.
We could have a chat if you need any advice in starting out.
AndrewO said:
Ryjam said:
Whats the thoughts on avoiding capital gains tax?
The rules will no doubt change by the time I come to sell but I would live in each one for the minimum term. Hopefully the kids will have gone so it will be just be me and the wife. There's plenty of nice 1900 double garage/workshop/room above type buildings around the same location, would be great to pick up one to complete the plan !!
Denbigh St is a "poor" area and whilst you have the argument that "someone" will live there it has to be taken into consideration.
But I am working on the same principal... Those houses will rent out @ £325 - £350 per month.
Stoke on Trent is having some money spent on it and with the Pottery industries being restored I think in 5/10 years time it should be a safe investment. These houses @ £40K - in the right area will always be worth that.
But I am working on the same principal... Those houses will rent out @ £325 - £350 per month.
Stoke on Trent is having some money spent on it and with the Pottery industries being restored I think in 5/10 years time it should be a safe investment. These houses @ £40K - in the right area will always be worth that.
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