UK Landlord Forum / Life

Hi Folks

There are some new properties just build near where I live and are now up for sale.  The average 3 bedroom property costs around 135k.

I was thinking of purchasing a 3 bedroom property by obtaining an interest only mortgage and then letting the property out to tenants.  Do you think that would be a bad idea considering the amount of investment that I make?  Obviously, there would be next to no repairs & maintenance for at least the first few years  (By the way,I am hopeless at DIY).

Thanks in advance for your responses.

Hi,

Rather depends, in my view, on which segment of the tenant market you are targeting. You need to assess if the new Government backed schemes to assist in the purchase of an individual's own home is likely to affect your target market by making them more likely to be home owners rather than tenants.

If you do proceed, then remember the point of "snagging" on new builds. These are problems with the property coming to light once they are occupied as a result of poor installation or build rather than general wear and tear. Ensure your builder offers a reasonable on site snagging fix for items becoming issues. Once the snagging period is overcome then, in theory, there should be less repair issues subject to your tenants' general care and use of the property and the quality of builder's craftsmanship, fixtures and fitings. There is also the benefit of a 10 year NHBC guarantee.

Good luck.

Thanks cyberlord.