Buy to let virgin

[xander1]

Hello all, I would appreciate any advice on my first venture into the buy-to-let business. I am entering your world to supplement my pension as I approach retirement and believe this is the best place for my money. My situation is that I have £100,00 - £150,000 cash and don't want to borrow. What type of property would anyone in the know recommend, ie small terraced house, flat, apartment, in town or country, whether to use property investment companies or plain old estate agents to source properties etc.? Any tips or advice would be welcome, thanks in anticipation of a torrent of replies! :hmmmm2:

 

[Lysos]

Ignore so-called property investment companies.

Start off rsearching your local area; look at prices (achieved, not 'asking') & rental supply/demand.

Factor in all costs e.g. agency fees (if you are not going to manage letting yourself),maintenance costs, insurance, void periods etc. If the return on capital is markedly more than a simple deposit account then consider it. Do not expect any capital gain for a very long time.

Do not under any circumstances consider holiday lets; the only way to generate steady returns is long term letting.

 

[xander1]

By to let virgin

Thanks Lysos, I'll take that on board.

 

[Neil-Grantpropinvestment]

I would recommend Student accommodation suitability for your B2L investment. Particularly in Scotland as the HMO regulations are more restrictive than England and therefore demand is extremely high. £100K cash purchase can get you properties providing yields up to 9%, instant equity and great returns on longer term investment. Hope this is of assistance.

 

[Lee Filkins]

In addition to the above. I would not buy cash. You should borrow what ever you feel confitable & the number stack up with e,g instead of buying ine for cash but two & borrow half.

The interest payments will negate tax as any surplus will get added onto your income for tax purposes & further any borrowing will reduce your assets availible for IHT.