Finding a BTL...
Discussion
Ok first attempt at a Buy to Let purchase. Ideally looking for one tenanted currently to save effort, don't want to spend more than 60k right now. BUT I can't seem to find properties that are not auctions, with lots of lovely extra fees on top.... Do I need to increase the budget or is there a source of property for sale (actually for sale not auction)?? !
98elise said:
What area? Properties are often sold through Rightmove with existing tenants. When I was looking in the North East a few came up.
Nothing wrong with auctions. You just need to take account of the fees in whatever you're prepared to bid.
We don't really mind, we are planning to use a letting service to deal with it. This may or may not also be unwise....Nothing wrong with auctions. You just need to take account of the fees in whatever you're prepared to bid.
I think part of the problem is I saw a property with a guide of 40k but 6k plus VAT or so in fees which I rather resent....
https://www.rightmove.co.uk/properties/163411406
Go halves lol consent need much to finish this one off.
Go halves lol consent need much to finish this one off.
Jasandjules said:
98elise said:
What area? Properties are often sold through Rightmove with existing tenants. When I was looking in the North East a few came up.
Nothing wrong with auctions. You just need to take account of the fees in whatever you're prepared to bid.
We don't really mind, we are planning to use a letting service to deal with it. This may or may not also be unwise....Nothing wrong with auctions. You just need to take account of the fees in whatever you're prepared to bid.
I think part of the problem is I saw a property with a guide of 40k but 6k plus VAT or so in fees which I rather resent....
I recently bought a flat at auction so ended up paying action fees, my solicitors fees, and some of sellers fees. I now own the property and it needs a lease extension which is going to be something like 8k (if I'm lucky).
Even with those extra costs it was still a bargain.
Flat in County Durham, 63k, tenant in situ (10% Yield), long lease, already EPC C so no issues beyond 2030.
https://www.rightmove.co.uk/properties/163486817
Find out what the ground rent and service charge is though.
https://www.rightmove.co.uk/properties/163486817
Find out what the ground rent and service charge is though.
Jasandjules said:
BoRED S2upid said:
See above. I will keep searching.
I am also wondering if it is sensible to not get a place that has a leasehold... Just because first time tipping toe into this water and not sure how deep it goes...... If a leasehold is not a problem then fair enough... Also avoid high rise as this could throw up some big bills.
The flat (maisonette actually) I bought above has £5 ground rent and no service charge!
Jasandjules said:
BoRED S2upid said:
See above. I will keep searching.
I am also wondering if it is sensible to not get a place that has a leasehold... Just because first time tipping toe into this water and not sure how deep it goes...... If a leasehold is not a problem then fair enough... Honestly cannot see the point at that sort of yield and value, i don’t think they’ll increase all too much, especially so if labour start building houses like they say (doubtful).
Take that county durham one, after taxes, service charges etc you’ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I’ve got 2 BTL’s and just don’t think they work anymore tbh unless massive HMO’s.
Take that county durham one, after taxes, service charges etc you’ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I’ve got 2 BTL’s and just don’t think they work anymore tbh unless massive HMO’s.
Coldplaya said:
Honestly cannot see the point at that sort of yield and value, i don t think they ll increase all too much, especially so if labour start building houses like they say (doubtful).
Take that county durham one, after taxes, service charges etc you ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I ve got 2 BTL s and just don t think they work anymore tbh unless massive HMO s.
As someone who has a Btl, 100% this. Don't forget you will have to pay tax on the rent and capital gains tax when you eventually sell it.Take that county durham one, after taxes, service charges etc you ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I ve got 2 BTL s and just don t think they work anymore tbh unless massive HMO s.
I honestly think I would be better off if I sold it and put the money in a Marcus account paying 4% with zero hassle.
ThingsBehindTheSun said:
Coldplaya said:
Honestly cannot see the point at that sort of yield and value, i don t think they ll increase all too much, especially so if labour start building houses like they say (doubtful).
Take that county durham one, after taxes, service charges etc you ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I ve got 2 BTL s and just don t think they work anymore tbh unless massive HMO s.
As someone who has a Btl, 100% this. Don't forget you will have to pay tax on the rent and capital gains tax when you eventually sell it.Take that county durham one, after taxes, service charges etc you ll make what, £250 profit a month? So £3k per year, which is the same as a 4% interest account. Granted interest rates will likely drop going forward, so what about using the historical 8% average on index trackers?
I ve got 2 BTL s and just don t think they work anymore tbh unless massive HMO s.
I honestly think I would be better off if I sold it and put the money in a Marcus account paying 4% with zero hassle.
1 bad tenant, you could lose 2+ years worth of profit. A new kitchen or something else required, again, multiple years of profit. I just cant see how they work these days, slightly better if bought in a company.
And on top of that, if it does go up in value you’ve now got awful capital gains tax’s to pay - which is the only reason I haven’t yet sold mine as just do not fancy handing over wads of cash to incompetent governments.
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