UK Landlord Forum / Life

Hello,

I am new to this forum, I am considering buying my first property to let out, this will be financed through a BTL mortgage and possibly a reportage on my own property.

Having done the maths on my expected rental income from this student property - Potentially £1100 a month, however the mortgage total should be around £400, the rates work out at around £90 a month and I expect heating/electricity & wifi to be around £120 a month.

It is for a 5 Bed terrace accommodating students.

Does this sound like a good idea or too risky?

Would appreciate anyones opinion.

Hi,

Don't forget that you will need to register the property as HMO with the local authority.
We have 1 HMO student let property as well as other family tenanted properties and the HMO is certainly more work in my experience, though the returns are of course better. We do not pay any of the bills you mention and make them the responsibility of the tenants.

Be prepared for a high degree of wear and tear.

I think that property rental is a good business but it does have it's ups and downs.

Hello.

You'll need a few more details to work out if it's a good investment, in addition to the strategy you want to adopt. I've learned there are all different kinds of reasons for investing in property, you have to do what's right for your circumstances.

Long term thing? Monthly income? Capital growth? HMO? Families? Students? etc. 

Read through the blog here, it's great.

Once you've made up your mind, look at the following before making any decisions;

House Price + Legal fees + SDLT + Any other initial costs
Mortgage Payment
Capital Payment Required (even if you do Interest only)
Tax implications in addition to your salary
Other yearly costs including a safe reserve

Work out your net yield and see what it spits out.

I'd advise looking at everything as worst case scenario, so assume 11 months rental per year @ £1000 per month, rather than £1,100 @ 12 and see if it's still paying in.

Good luck!