UK Landlord Forum / Life

My second post, so not a one post wonder?

So I posted before about the possibility of investing 150,000. We've now been told the insurance companies will pay out, so we've consulted our financial adviser. Now I accept that he makes money when we buy financial products, but I trust him and he's always looked after us.

His suggestion was to buy four properties in the nicer areas of Bradford. four mid terrace, 2 bedrooms. He felt that this would bring in the necessary for my wife to ease back into work and for me to go part time. This would be depositing 30 grand on 120 grand properties. His sums were reassuring, and he pointed out the any rise in value would be greater than if we invested in cheaper property. Which is good point.

I guess my own ideas were investing in cheaper properties, even buying all out. Of course inevitably these properties would be bigger risks, areas and clients more challenging.

Any thoughts, ideas? Further info needed? Apologies that I don't really have a question, but I'm using you as a sounding board. Look forward to hearing back.

£30,000 on £120,000 properties might not give you access to the very best BTL mortgage products... check into that and see what advice comes back.

Will these be repayment or interest only mortgages? I always do repayment... others always do interest only.

Will you be employing an Agent or doing it all yourself?

Bradford, 2 bedroom properties (even nice ones) I'm guessing let for around £500 per month? Maybe as low as £450, maybe as high as £550, or am I way off the mark... probably not much real profit in there after mortgage payments, but I guess you're looking medium to longer term.

All Tenants can be challenging.

I guess you mean more than 25% deposit gets you better BTL mortgage deals.

Interest only mortgages are where we're looking.

I'd really like to do this myself, but for the sake of 10% whilst I'm still working full time I can see the wisdom of it. Long term certainly.

we can definitely get 450, 500 maybe.

Whilst all tenants can be challenging, the clients I'd get in 4 30,000 one beds in BD7, really would be hard work. I would envisage more voids, more chasing rents. This is to be a long term investment for my wife and I. We already rent one property so we're not completely new to this, but this will be the

Quote from: Sungover on August 14, 2014, 04:49:18 PMI guess you mean more than 25% deposit gets you better BTL mortgage deals.

Indeed it does.