Buy to Let

Author
Discussion

jayx73

Original Poster:

69 posts

192 months

Monday 22nd May 2017
quotequote all
I am looking at purchasing a buy to let flat with a value of approx 80k

Any recomendations on the what part of the country ?

Hoofy

76,253 posts

281 months

Monday 22nd May 2017
quotequote all
Interesting thread. May I ask, if you live in an expensive area eg London, and assuming said flat is going to be 2-3 hours' drive away or more, how will you manage things?

BoRED S2upid

19,643 posts

239 months

Monday 22nd May 2017
quotequote all
Is that your only requirement £80k flat. What sort of rent do you need? 1 bed, 2bed, studio etc...

jayx73

Original Poster:

69 posts

192 months

Monday 22nd May 2017
quotequote all
I have a nest egg which makes 80k comftorably fundable hence that's my budget, it could be one property or more .
The T&C of my company pension for future accruals will be changing soon and I feel like changing employers ,hence another asset seems like a good idea .
I have rented a property out years ago so I am aware of pitfalls As for area I'm open minded living down south means it will be a long drive , and I do intend to manage the property myself


Hoofy

76,253 posts

281 months

Monday 22nd May 2017
quotequote all
jayx73 said:
I have rented a property out years ago so I am aware of pitfalls As for area I'm open minded living down south means it will be a long drive , and I do intend to manage the property myself
What happens if your tenant calls up about a central heating failure at 11pm on a Tuesday?

nyt

1,803 posts

149 months

Monday 22nd May 2017
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If at all possible then the closer to you the better.


BoRED S2upid

19,643 posts

239 months

Monday 22nd May 2017
quotequote all
Does it have to be a flat / apartment? Terrace house ?

jayx73

Original Poster:

69 posts

192 months

Monday 22nd May 2017
quotequote all
I'm Open minded as to what it is just looking for ideas / advice . I have previous experience of renting and it wasn't local either , I found it better to deal with the issues myself rather than the letting agent.

fat80b

2,242 posts

220 months

Monday 22nd May 2017
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Peterborough - mainline station, big hospital, not too expensive to buy?

will need a mortgage +80K but would yield enough to make sense.

Jobbo

12,960 posts

263 months

Monday 22nd May 2017
quotequote all
Hoofy said:
What happens if your tenant calls up about a central heating failure at 11pm on a Tuesday?
If you live next door and can go round in person, is that beneficial if you're not a heating engineer?

BoRED S2upid

19,643 posts

239 months

Monday 22nd May 2017
quotequote all
Liverpool or Cardiff both have property around the 80k mark and always a high demand for rental property.

Hoofy

76,253 posts

281 months

Monday 22nd May 2017
quotequote all
Jobbo said:
Hoofy said:
What happens if your tenant calls up about a central heating failure at 11pm on a Tuesday?
If you live next door and can go round in person, is that beneficial if you're not a heating engineer?
Good question. I'd like to think I can call up my local trusted heating engineer and speak to him in person to find out what's what.

jonah35

3,940 posts

156 months

Monday 22nd May 2017
quotequote all
Get a freehold house not a flat.

Service charge and ground rent eats into a flats income too much.

A friend of mine buys in Huddersfield, gets them for c.£60-80k and rents out for c.£500pm.

Good uni, between leeds and manchester, on m62 and so on.


KevinCamaroSS

11,555 posts

279 months

Tuesday 23rd May 2017
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jonah35 said:
Get a freehold house not a flat.

Service charge and ground rent eats into a flats income too much.

A friend of mine buys in Huddersfield, gets them for c.£60-80k and rents out for c.£500pm.

Good uni, between leeds and manchester, on m62 and so on.
Agree with this.

Do you fancy doing restoration/renovation work at the beginning? If so, perhaps a terrace house in need of work?

Mezger

370 posts

105 months

Wednesday 24th May 2017
quotequote all
jonah35 said:
Get a freehold house not a flat.

Service charge and ground rent eats into a flats income too much.

A friend of mine buys in Huddersfield, gets them for c.£60-80k and rents out for c.£500pm.

Good uni, between leeds and manchester, on m62 and so on.


That's a very decent gross yield at 7.5% even with a 50% deposit wouldn't take long to build up a decent portfolio. What's the tipping point where it makes sense to go ltd company vs individual with new tax regime?

mike74

3,687 posts

131 months

Wednesday 24th May 2017
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jonah35 said:
Get a freehold house not a flat.

Service charge and ground rent eats into a flats income too much.

A friend of mine buys in Huddersfield, gets them for c.£60-80k and rents out for c.£500pm.

Good uni, between leeds and manchester, on m62 and so on.
Can you link us some examples of properties in Huddersfield that can be bought for £60k and achieve a rental income of £500pcm?

jonah35

3,940 posts

156 months

Wednesday 24th May 2017
quotequote all
http://www.rightmove.co.uk/property-for-sale/prope...

This could be had for c.£58k i bet. Not the best example but you can see if you haggle hard and buy at the right time its doable.

'Go halves' with a family member and its easy enough to build up a portfolio quickly.

Obviously local auctions he says are cheaper and the odd reposession property comes up once in a while and he gets a discount for cash of course and you get in with the local agents.

I know hes got some at auctio n like the above for c.£40k or so.

Perfectly acceptable!


jonah35

3,940 posts

156 months

Wednesday 24th May 2017
quotequote all
Hoofy said:
Jobbo said:
Hoofy said:
What happens if your tenant calls up about a central heating failure at 11pm on a Tuesday?
If you live next door and can go round in person, is that beneficial if you're not a heating engineer?
Good question. I'd like to think I can call up my local trusted heating engineer and speak to him in person to find out what's what.
Well, your phone would be off so you would ignore it until 9am and then You would text the plumber to go and sort it and get the plumber to forward you the bill

Hoofy

76,253 posts

281 months

Wednesday 24th May 2017
quotequote all
jonah35 said:
Hoofy said:
Jobbo said:
Hoofy said:
What happens if your tenant calls up about a central heating failure at 11pm on a Tuesday?
If you live next door and can go round in person, is that beneficial if you're not a heating engineer?
Good question. I'd like to think I can call up my local trusted heating engineer and speak to him in person to find out what's what.
Well, your phone would be off so you would ignore it until 9am and then You would text the plumber to go and sort it and get the plumber to forward you the bill
I suppose you could do it like that. smile

Jobbo

12,960 posts

263 months

Thursday 25th May 2017
quotequote all
Hoofy said:
jonah35 said:
Well, your phone would be off so you would ignore it until 9am and then You would text the plumber to go and sort it and get the plumber to forward you the bill
I suppose you could do it like that. smile
Since I'm about to become a landlord (hey, I advise landlords for a living every day - I should have no problem... laugh ) it was a genuine question. It strikes me that tenants have a very unrealistic expectation of how quickly things can be fixed. If I live in my own house, I have to call up a plumber/gas man or whatever and wait for them to turn up. Being 5mins away or being a couple of hours away won't make any great difference to how long it takes to fix. I suspect it'll make a difference to how much the tenant thinks he or she can get away with, though.