Buying to let property

[Gazz]

Been thinking about doing this a lot recently, mainly for the benefit of my child who; in many years to come; might have somewhere to live (or at least the money if she wants to sell said property and buy somewhere else).

Currently have a mortgage that I pay off comfortably enough because at the time I decided to pay it off over a longer period of time that I could have, so have or could get with loans, etc a bit of cash to throw at another property.

But tonight, while discussing the matter with the other half, she seemed very against the idea and tried to convince me I would be making a big mistake by going into all the 'what ifs...' to put me off the idea.

The way things stand, she does not contribute to the house, my house and my money pay for it and this would also be the case with the other property so I was wondering why she would be so negative about it.

Some properties up here can be had really cheaply so even if it was a gamble it would only be a small gamble in money terms and if it all goes tits up for whatever reason then I suppose you could just let it on and break even, or thereabouts.

Just looking for a cheap 1 bedroom thing to start off with and rent it out for just enough to cover costs, just to get a tenant in. I cannot really see any bad points about the idea . Have I been watching too much Homes Under the Hammer and have tunnel vision goggles on? Or should I be a bit more cautious about this?

I should also say that my child is only 1 year old so this is a long term plan.

Any advice my appreciated.

[Llama-Farmer]

Is the other half also mother of your child?
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[Pie-Roe]

From what I know, which is fairly limited.

Capital gains on the difference between buying and selling.

Buy to let mortgages have certain stipulations. Landlord insurance isn't so much.

There's always a risk of someone trashing the place, you need to have money set aside or insurance to fix things like a boiler breaking, roof work or mould etc.

If you have the money I would do it. Purely from my experience of my uncle's business, 1-2 bed flats rent for more per bedroom and work out better in having money left over after the mortgage is paid. If you have less than 5 properties, using an agent is just throwing money away. For one, I'd be advertising locally, holding on for a decent tenant. Bank references are an expense that are fairly irrelevant nowadays, as everyone uses online banking you can get a printout of how much money comes in, how much rent is currently paid and when. Most tenants were happy to provide this to pay fees. If you're lucky you can get a long termer who pays on time.

We did have one flat that was done over 3 times in a row, so new doors and frames, locks and windows all round. But that's fairly unlikely, and a reasonable deposit does cover a good deal of it, if you can do the work yourself. If you don't have the time/knowhow to do basic DIY stuff, it ramps up the price quickly if things go wrong.
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[Tracey Suntan-King]

Every time I start being tempted into BTL, I remember a friend who was sentenced to 4 years for manslaughter after one of his tenants died of carbon monoxide poisoning from an incorrectly serviced boiler.

I never want to be a landlord.
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[Carl_steveo]

If she doesn't pay for anything and won't be paying for this why ask her permission.
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[Rogerborg]

One of my few regrets is selling my first house rather than renting it out. Do it, seek those rents - it'll annoy Itchy if nothing else.
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[monkeybiker]

This is something I would like to do in the future. My plan is to move out of my current house and rent it out and buy myself another house for myself.

I would like to know how to deal with bad tenants. Basically how to you get them out quickly if they stop paying rent?

I'm not bothered if the method is a bit ''dodgy'' along as it doesn't come back to bite me.

[P.addy]

[Tracey Suntan-King]

[daemonoid]

[daemonoid]

[monkeybiker]

[daemonoid]

[Itchy]

[Itchy]

[monkeybiker]

[Rogerborg]

[nowhere.elysium]

[wr6133]

Itchy is right teach her Mandarin they will rule the world soon and I'm sure they will pay the collaborators that speak the lingo better than the ones that don't. Forget the other flavour our Beijing overlords will care about that about as much as Swahili.

Also buy the property, ignore the other half I'd bet most of her unspoken reasons not to are more selfish than worried.

[Keir]

you will need to factor in that you need a 25% deposit for BTL rather than the 10% for residential.
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[stevo as b4]

Does anyone feel bad or wrong that BTL is massive in the u.k and if you can find a few quid or get a BTL mortgage deal that you can do this which may or maynot help your riches in later life or pension pot, but it helps nobody that's struggling to get onto the property ladder with a cheap property as there aint none to be had?

I remember reading property sections of my local papers say 10-15years ago, and there was masses more houses for sale than there were to rent. Now it's gone the other way or at least 50/50.

I know that if you can do something to help yourself and your future that's a good move, but would anyone feel just a slight pang of guilt for pushing would be buyers out of area's with too much BTL or is it their own faults for not getting off their lazy arses and doing something to help themselves?

My personal view is that while I don't despise BTL people like I do religious extremist groups, I can't help feel that they are fucking things up a bit for everyone else, especially in nice coastal area's etc where holiday lets have stuffed up chances of local people living in local homes, or in cities where student accommodation has taken over whole area's and reduced the availability of houses for people to buy, or the desirablility of living there (student areas fuck that for a laugh).

[monkeybiker]

[Itchy]

[finniee]

I would suggest :

Buy current property - if already bought, save money.
Have enough money for say 1/3 of price of property.
Possibly take out a lone for the other 2/3, that way you are not worrying about repayments of a larger loan or mortgage.
Move into said new property, pay off loan etc.. Put ex house on market.
If it doesn't have interest to buy in 3 weeks then put it to let.

If in rubbish area, sell to council.

[Baffler186]

If you've got the capital for the deposit then it seems a good idea. My in-laws have 9 flats now (which I think is greedy), most of them were had for around 60k, done up and painted then rented. Be prepared to sort out all the little problems though, as a landlord you will be called up every time the heating/plumbing goes on the blink.

It might be a different story price-wise in your area, but the principles are the same.
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