someone gave me a idea the other day about buying a second home and rent out,i have know ideas about this does anyone ?, if you do can you point me in the right direction and tell me its wrong also, be good to listern to both sides
someone gave me a idea the other day about buying a second home and rent out,i have know ideas about this does anyone ?, if you do can you point me in the right direction and tell me its wrong also, be good to listern to both sides
I only wish I had started doing this 30 years ago....as several of my now very rich friends did.
At least you can now get proper buy-to-let mortgages.
I would NEVER sell my UK home now to pay for adventures abroad.
A major and costly mistake I've made in the past.
Rent it out !
Beware of parasite letting agencies though, who basically do sod all and take a nice percentage to keep them in flash cars.
Better to use a relative to handle things if possible.
make sure its got clean and clear titles..some properties got two or three owners and the papers have not been properly sorted , check with the registry of deeds.Originally Posted by stevewool
you should know how it works in the PH Steve
''Don't be serious..Be Sincere''
i rent out my rooms in my house and get twice the amount of money if i was to rent the whole house out .a word of warning don,t give tenancy agreements to lodgers as its very expensive to get them out .lodgers don,t have any rights so you can remove them the same day if you wish without any legal redress ,ive never had to remove any of my lodgers touch wood
A friend of mine was getting £900 a week off several 'guests' in a house that he'd paid 40 grand cash for.
The old DHSS bed and breakfast scam.
He was 24 years old at the time, and owned another 11 houses...like blinkin Monopoly.
I think he has about 100 properties now.
I have an older family member that has been doing this for about 15 years in London.. He had 12 houses and was raking it in till about 2009.. He`s got 2 houses now and is trying to get rid of them..A friend of mine was getting £900 a week off several 'guests' in a house that he'd paid 40 grand cash for.
The old DHSS bed and breakfast scam.
He was 24 years old at the time, and owned another 11 houses...like blinkin Monopoly.
I think he has about 100 properties now.
Cant even get the Polish to rent rooms anymore..
Says things are dire in the UK...
All very depressing.
Im told I was very lucky I sold lock stock and barrel in 2007.
Yes I've miss-timed things too, but last time I can blame it on the ex deciding to wreck our marriage just as the best UK property-buying era for the past 20 years arrived.
Probably cost me/us £300,000 and early retirement.
Took me enough time to persuade her that it would be a good idea to buy a house here when we got back from Hong Kong in 1996.
Women !
What country are you planning to buy your new investment ?
I thought Filipino UK was your second home!!
Teasing aside, this is something that I've been researching for several months as I'm just months away from paying off the mortgage. What I'm aiming to do is re-mortgage to release equity in my home to enable me to cash-buy a second property to rent out. Then mortgage property 2 to purchase property 3 and so on.
The buy-to-let sector is buoyant due to the difficulty for first-time-buyers to get a mortgage. At the same time the rates for BTL mortgages are relatively low due to the low BoE base rate. They are higher than non BTL mortgages though.
With regards to Letting Agents, if you're planning to rent out to facilitate a move to the Phils then a LA will be essential. If you're staying local, are quite handy with DIY, know a variety of tradespeople who you can rely on to respond to call-outs 24/7 then you can probably manage without one - although you should probably still use one to find tenants as there is legislation regarding deposits etc that you would need to be aware of.
LA's do a variety of packages from finding and vetting potential tenants to a fully managed service. Charges for a fully managed service range from about 7% up to 15% but it's a competitive market and everyone negotiates. Tenant finder/vetting charges are around a couple of hundred pounds.
For a first time landlord I'd recommend you put everything through a LA until you have the experience to go it alone.
For a better return on investment try student lets (very strong market for that in Derby) but be prepared to re-decorate every year. Be aware of HMO's (houses of multiple occupancy) though as you may need to get an inspection from the local council and pay for a license. Again LA's and estate agents can advise on that.
If you do student lets you will be expected to furnish the property.
Rule of thumb is to work on getting rental income for 10 months a year.
Income from rent is subject to income tax and the lenders and HMRC talk regularly so high risk to try to avoid declaring it.
Mortgage interest, mortgage arrangement fees, LA costs, repairs, re-decorating, EOT cleans etc can be offset against tax but capital improvements (new kitchen, bathroom etc) cannot.
I've heard several nightmare stories and several success stories with buy-to-lets, as with anything there's an element of risk but generally most people seem to make good money at it.
Most landlords aim to achieve approx 7% return which is far better than sticking your money in a bank account. Also over time property values should go up so you will gain twice over.
There's a lot more to it than above, and perhaps you should try to get advice from sources outside this forum, but that should give you a decent start point.
In the meantime try checking property websites such as Rightmove to get a feel for property values and rental incomes.
Most councils will take your property for a number of years and return it to you at the end of the agreement in good condition
Ok they pay slightly less but the money is always there on time
Most letting agencies will do very little if a tenant they installed in your property decides to stop paying the rent !
Do you work for a letting agency ? lol
If it's in UK, there is a limit above which it becomes an HMO and the comments above apply. I believe it's 5 and below is OK, 6 and above is HMO regs. Please check as I'm not sure.
We did that with 3 houses in Lincoln just a few years back... The idiots TRASHED the place.. They used the bedroom walls as a dart board and the kitchen looked like a waste grease bin!! Maggots and flies in the oven and unspeakable things in the bathroom,broken windows,Complaints about late night parties etc.. I was a decorator by trade and Ive seen some pretty bad properties in my time in local council properties (even a guy with a diesel engine in his front room) but after that experience...NEVER AGAIN!!For a better return on investment try student lets (very strong market for that in Derby) but be prepared to re-decorate every year.
Bunch of animals IMO.. Be careful.
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