UK Landlord Forum / Life

Hi

I'm just in the process of buying a BTL property and would like some pointers. I've read a lot of the articles on the site which were very useful but have some questions.

Can anyone recommend software to help with tracking the financial side of the property? I'm particularly looking for something that can track each property in my portfolio (at the moment only one), deal with tracking the expenses, rents, yields, give alerts when things like gas checks are due etc. If anyone has a freebie spreadsheet that can do a similar thing then I won't say no 

The property I'm buying basically needs new kitchen, floors and complete redecorating. Should I be looking at middle of the range kitchen or go for budget with the view that I'll need to replace the doors every 5 years? I'm of the opinion that the better the property is presented the more likely the tenants are going to look after it - correct?

At the moment I've been offered a BTL (repayment or interest only mortgage) at 5.49% no fees on a 3 year tracker; or 2 year fixed at 6.04% and 2.5% fee. I haven't shopped around yet but how do those stack up generally?

Any good books out there on BTL / property investment? Things have changed so much that I wonder if anything printed before mid 2008 would be useful.

I'm sure I'll be back with many more questions. 

Hey there,

1) There's a landlord software you can use on http://www.propertyhawk.co.uk/. I don't know how good it is, but I know they have one.

2) How much you budget on decor depends on your target market, in my opinion. I have a property that's for young professionals, in which I usually buy stylish mid-range stuff for. You can make a house look extremely presentable on a mid-range budget. If you've bought a property which isn't in a great area, and will most likely attract families that are struggling, I would keep the fittings cheap, basic, but clean. 

3) I personally wouldn't get a tracker, because the interest rate can only drop another 1%, and then the only way is up. The best you'll ever get is 4.49% ABOVE the base rate, which isn't very good, considering some people have rates that are 1% BELOW the base rate. Where did you get your quote from? I'd talk to as many brokers as possible, and go to a lot of comparison websites.

5.49% seems pretty high since the base rate is 1%. I always get repayment mortgages, because I like knowing that i'm reducing debt constantly. For that to work though, you need a high yield property, where rental income will cover repayment payments.


4) property books


I hope that helps! Please let us know how you get on!

Thanks for the reply.

1) I'll check out that software and see how it goes. I found a few commercial packages but none offer a free demo so unable to valuate them.

2) Your comments echo what I was thinking. i'm going for something that looks good and should wear well but not exensive.

3) My problem is that I'm not UK resident so will require an 'expat' mortgage which seems to reduce my options quite a lot. i've got a broker looking into it but he seems to think my offer wasn't that bad. I've tried a few comparison sites but as soon as I enter my address I get told to contact a broker directly.

4) I did see that link for the books but for some reason the books don't show up in Firefox. I tried again in IE and it works.

Welcome!

EzPeZe software looks quite good (free demo period) and also landlordmanager premium 8. I have premium 8 and whilst it is ok I dont think it is as user friendly as Ez.

How much deposit are they asking?

I have a tracker that tracks at 0.3% below base. If the rate drops to zero then technically the financial institution owes me! Yet  to try that out!


At the moment I am on interest only mortgage as I dont intend to sell and finance my portfolio through debt (leverage).

Kitchen wise, depends upon your geographic location, but I would go for a budget kitchen but spend a bit more on blinging it up - stylish knobs etc.Get some drawers with metal runners and maybe an MDF carcass. There are lots of kitchens each with variable quality so shop around! I use Howdens Joinery for my houses. Ignore their retail proces as trade is usually 40 - 75% less!! huge margins!!!

Barter, negotiate and bargain!!!!!

Keep us informed!!

Jools

Hi Jools

Thanks for the tip on EZ. I'll check that one out. Landlord manager is also one I am looking in to.

As for the deposit, it's 25%. My brokers are still checking the options for me but options seem limited. We've just discovered that one of the offers (the one for 5.49%) has been blown out of the water as there is a stipulation that I need to be working for a large multi-national company  What working for a multi-national has to do with it baffles me. They would offer any more job stability than anything else at the moment.

You must have had your mortgage for a while to have got 0.3% under base. There is nothing like that being offered at the moment. Oh well I'll keep looking. In the worse case I'll take some within which will give me the combination of lowest fees and interest over 2 years and then look at switching and hopefully thins may have improved slightly on the mortgage front.

The mortgage market really is a complete nightmare at the moment as the amount of lenders has reduced. Last time I spoke to my IFA she showed me only 10 mortgages available. Last year it was over 100!!

Keep an eye on the fees and look at the best combintion of fees and interest rate.

Multinationals - does that mean working for a bank? W****rs!!

Get 'em up against the wall and ... well you know the rest. Dont want to be accused of inciting banker genocide by MI5!

Jools

I still can't believe how high mortgage interest rates are compared to the base rate. All the best deals require a 40% deposit. It's tough out there!