UK Landlord Forum / Life

My husband and I are considering buy to let properties to gain an income from 120k pension commutation. We are considering buying 3 flats with btl interest only mortgages to hopefully give us a monthly income as well as pay our mortgage on our own house.
We had originally planned just to pay off our own mortgage but have since been advised that btl would give us a monthly income and in the future we would (hopefully) be able to get back the original amount we invested.
After a lot of research this does indeed seem like a good investment and financially beneficial to us.
We would anticipate holding onto these properties for 10 to 15 years.
I would really appreciate views and advice from all you experienced landlords out there!
Many thanks!

It is a good idea, but do you want to risk the hassle, and the fact that you really are tying up your capital for 2 years from the time you want it back?

I personally don't think BTL is a pensionable type investment once you reach near retirement age.

I wouldn't buy flats.

I would look at a nice Bungalow.

What ever you decide I hope it works out.

Wouldn't a cruise and some lucky dip lottery tickets be easier?

Quote from: sugarplum on June 05, 2014, 05:45:17 PM
After a lot of research this does indeed seem like a good investment and financially beneficial to us.

From your research what sort of gross yields were coming out?

Thanks for replying. Boboff the cruise sounds good but hopefully this would give us an income too. Why would the capital be tied up for two years after we wanted it back tho?

Riptide the gross yields were approx 6 pc. We were thinking of flats cos after talking to local letting agents they said that these were the properties most in demand in our area.

I obviously I don't know which area you are thinking about buying in but 6% gross yield on a flat, for me, would be a definite no go.  Is there scope for good capital appreciation?  You've got your 6% gross, what do you estimate net to be?  Ground rent, service charges (that can obviously be increased), lease renewal costs, repairs, block buildings insurance, void periods, agency fees (if you're going to use an agent), income tax, definite BTL interest rate increase in the 10-15 years that you're looking at will see that 6% go down to?

Hi

The comment on two years is what I reckon it takes based on the last 20 years to sell a rental.

The process can be quicker, but when you consider 1. Selling with a tenant... 8 months gone, 2 months notice, 2 months doing up, 2. Put on market, get a buyer in 3 days, they bugger you around for 4 months and then disapear, remarket, etc etc

TPW?