I'm thinking about investing in the midlands as london is too expensive and fairly saturated
2006-09-03 23:28:27 · 11 answers · asked by davejenko06 1 in Home & Garden ➔ Other - Home & Garden
it is ok to buy-to-let but you need to make sure you have the right location. A good place is always near universities.. or in a more select area for professional people. However be careful with buy to let...
i would buy on normal mortgage then let
2006-09-03 23:31:47 · answer #1 · answered by confused 6 · 0⤊ 0⤋
In my opinion, BTL still looks ok. As house prices are continuing to rise, it means fewer people are buying, meaning more are renting. Best to speak to a financial adviser first, they will be able to tell you what the best investment is for YOU.
If you are looking for buy to let properties, I suggest that you do as much research on an area as you can. If you don't have much experience in BTL investments, I suggest you use the Singing Pig website. Speak to a host of companies as well. Don't accept what they tell you as being fact. Many newbie investors have become unstuck in the past, simply because they believe that they will be millionaires within a week through property.
DON'T GO TO ANY SEMINARS.
They may try to pressurize you into buying on the day.
Look for areas which have a lot of commuters and very few flats. Speak to local letting agents to gauge their opinion on the area. Don't take what they say as gospel, but if they tell you an area is bad, listen to them!! Regeneration areas can also be good, but can e more risky.
Make sure that your rental income is covering your mortgage payments, plus 25% on top to make sureyou can cover for all eventualities (i.e. a knackered boiler). Some investment companies like Hattan and Grand offer a calculator which will let you see at a glance what your yields would be like.
London and the south east will always do well as their is always a demand. Other areas of the country don't enjoy this demand but are obviously much cheaper.
Beware of city centres...Many like Leeds, Manchester and Cardiff are now MASSIVELY oversaturated with BTL, meaning that landlords are getting huge void periods.
Watch out for student flats...any more than 3 people in them and you will need an HMO licence. This is very expensive and will require a lot of modifications to the property.
You are probably best to start off investing in an area that you know well. If that isn't possible then there are a few companies that can provide research reports to you on the area of your choice.
*Don't buy with a normal mortgage and then rent the property out! If your lender finds out, they will be VERY unhappy!!*
The links below should help you get started
2006-09-03 23:47:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You should speak to a financial advisor to get some idea. Even the one at your bank will be able to advise you whether you can do it in your situation, although they might not be able to offer you the best deal.
Generally, for buy to let, you will need to show that you can generate enough income to cover the mortgage (or just the interest on it, which is fairly common), and you will need to make sure you can get planning permission from the local council if you want to let it out to more than one family. (Renting to a family, individual or a couple probably doesn't require this, but you should check with the local council anyway). You should also make sure you set aside some money for legal advice for contracts, and to make sure the property is up to rental standard (e.g. fire safety check is free from the fire service, but might require you to buy fire doors etc.)
If you discuss buy-to-let with a financial advisor, they'll be able to fill in the details for you, but it might be worth talking to a solicitor in the midlands to find out what the local environment is like for buy-to-let.
Just be sure you have a plan up front and you know who you're looking for as tenants and what they'll be looking for and you have enough money spare to cover emergencies, maintenance and months where you have to rental income.
2006-09-04 00:02:56 · answer #3 · answered by Mad_Goldfish 3 · 0⤊ 0⤋
buy to let is one of the most reliable and safest investment. it all comes down to finding a property with resonable figures so that you can get your expected return on your investment and most important if your going to get a mortgage finding the right one from thousands. you could try going to www.sharedspaces.com were you would be able to find co buyer/s on a property. one rule of property is to rather buy a hot property in a sought after area than a dead end. email me on abbas_msw@yahoo.co.uk if you are intrested in investing with a second person in west london or central good luck
2006-09-03 23:35:06 · answer #4 · answered by Abbas 3 · 0⤊ 0⤋
It is an excellent investment but just 2 points to look out for. 1.That you can afford to pay the mortgage If there are no lodgers and
2.If you can trust the people you let to.
2006-09-04 00:05:24 · answer #5 · answered by markwebb34 1 · 0⤊ 0⤋
You have to be sure to let so near university or college is best however there are a lot of rules and regulations if you want to rent through university. My friend has had a lot of trouble with her tenants in the past even with good references and taking a deposit. Also you have to be sure of letting all the time
2006-09-04 10:51:16 · answer #6 · answered by Andrea S 2 · 0⤊ 0⤋
it may be ok, but make sure you know a lot about the people you let it to as you dont want it to be left in a mess.
2006-09-03 23:35:46 · answer #7 · answered by cjscot 2 · 0⤊ 0⤋
it depends whether you have the money or not, and the location of what you are letting. If you have lots of money spare then it is good
2006-09-03 23:35:51 · answer #8 · answered by Felix Jager 2 · 0⤊ 0⤋
Go For it!
2006-09-03 23:51:56 · answer #9 · answered by ihavetriedseveralnamesnow 2 · 0⤊ 0⤋
it is wise when: you can let to foreigners: diplomats or executives!
2006-09-03 23:48:06 · answer #10 · answered by ttikki2001 4 · 0⤊ 0⤋