UK Landlord Forum / Life

Hi Folks

I am thinking of investing in a property by letting it out.  However, I am hopeless at DIY. e.g. repairs & maintenance.  Do you advice I go ahead with this plan and get a management agent involved?  If so, the fees would be high (won't they?), and so would it be worth investing?

The only reason why I am thinking of this way of investing is because as you know, interest rates for savings are quite low at the moment.

Please advice.

Bu the way, those of you who are wondering about the other topic which I started, that is a joint property and the other person (a good friend of mine)takes care of all the maintenance.

Thanks in advance for your responses.

I'd say stay out of it. Houses need endless amounts of small to medium work and if you have to pay a tradesman for every single item then you'll never be able to turn a profit or build equity in a reasonable time frame.

My 2p.

Hi Armin

Many thanks for your reply.  Could you suggest any other ways in which I could invest?  As you know, bank interest rates are low at the moment.

hello geek84,

Could you invest some of your time in gaining some basic DIY skills?  Excluding the things which are legally controlled (gas, some electrical work) most DIY skills are not difficult.  Your local college doing Adult or Apprecticeships training has probably got a decent course for you.

Also, if you're thinking of investing because interest rates are low, then I'd suggest you don't.  Your desired model of hands-off will tend to lead you to want to get profits from capital appreciation, not rent (because your property will go slowly downhill as you don't do maintenance so your lower quality property will attract a lower quality tenant.  Then do it up nicely just before sale and cash in the rise in sale price).

But you're got a lot of property purchase fees to cover off (solicitors, BTL arrangment fee, surveyor, etc) in your hoped-for capital growth.  And when interest rates rise again (the point I assume you'd want to cash in your chips), I predict there will be no capital appreciation for you to see.  Why?  Well as interest rates go up, the interest payments go up, too.  We've only got so much money in our pockets and if it becomes more expensive to borrow, then people will prefer to borrow less, or be forced to borrow not at all.

Pressure on prices and a slow market are hardly going to be conducive to you making a quick capital return.

Sorry I've not been very positive with your model as I understand it.

well invest in new property!! its probably got 10 year guarantee on it for major problems and the boiler will have warranty and all the appliances. or just get friendly local tradesmen theres lots about for £10-15 an hour. tell him he will have some regular work as long as he doesnt take the p**s and give you silly bills.
if you go on rated people there are hundreds of trades waiting to give you their best price as well?

presumably you are able to hold a paintbrush and roller and use a hoover!! ? if so your already a budding landlord lol

Good Morning Folks

I've been busy lately with personal problems, but now I am back again still mulling over this idea.

Lord Landy adviced to buy a new property.  However, would that be worth it taking into account the amount of investment made and possible rental income?

Hi,

To be honest, for me, this is where you need to do your homework. Work out your sums i.e. what is your ROI / Yield etc. Guesstimate what your likely void periods would be (3 months per annum ish). Then, once you have that information, you are armed with the knowledge that investing in a new build (or any build for that matter) is a good or bad idea!

Investing is always risky business whether it's property or stocks and shares but as long as you've done your sums, these risks can be minimised.

Good luck!

Better still is the nearly new property that has been repossessed and is selling for silly money. I can buy a 200k flat for under 80k

Hi Folks

Many thanks for your replies.

Jeffo  How can you buy a flat for 80k which is worth 200k?

Is is worth my while visiting property auctions or am I likely to get ripped off?

Thanks

I am in Liverpool but there is this price discrepancy in manchester, warrington, st helens etc.
They are on rightmove. Never listed as a repo but lack of furniture and price is a dead giveaway. I wud buy loads if I cud raise finance. saw one up with reeds rains askn 75k go to auction and fetch 78.k. I would not say auction was any better other than to highlight property for sale you may not have seen on the market before.

When I say worth I mean was worth! Sold in 2007 at 160-200 and now on the market at 60-80. I have not found a way to buy this stuff unless you have the deposit sat in the bank now.(I dont) My last buy was a repo 2 bed house. previously selling at 100k. I got it at 65k. Wanted it for the mother in law. Every time they have been left standing the boiler is seiszed or ill, but none of us fix them ourselves anyway. Generally you need a full repaint, couple of dodgy door hinges doing in the kitchen, re seal around the bath and new carpet. I tend to pay cleaners £70 for a spruce up too. Smaller you buy the quicker and cheaper to do up!
None of the carpet places round here will remove and dispose as they need a waste carriers licence. If they will remove they never clean underneath and that has to be done or the last owners dog and fag smell comes thru. Easyily done yourself.

Thanks Jeffo.

Is rightmove the best place to go searching for property repossessions?

Why isn't the price listed for repossessions?

Thanks

You can invest in real estate, this will be safe and profitable than what you have planned to go for.
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property management sioux falls SD

Goosd Morning

Thanks for your reply. Christopher.

What do you mean by investing in real estate & would it be more profitable?

Thanks

Good afternoon folks

Just to give you an update on my situation -

I've spent most of this morning going round estate agents & letting agents trying to identify the type of properties and areas which would be profitable as a buy to let.

Having identified my target areas / properties, the next problem is the mortgage.  I am not working at the moment!!  My wife works part time., so we are severely restricted to the mortgage providers' that would let us take out a mortgage.  However, our home is mortgage free.

So, I guess the next thing to do is go round all the mortgage brokers in my area trying to identify the right mortgage to take out. 

Would you agree with that?  I suppose it is best to find out what we can borrow before selecting a property?

Thanks.