Home  |  Message Board  |  Contact Us  |  About Us  |  Fan Pics  |  Fan Polls  |  RSS Feed  |  Top of Thread  |  Login  |  Register
Display By:
Home  |  Message Board  |  Top of Thread  |  Login  |  Register
Display By:

 

 

Previous Thread   |  Top Of Board  |  Start New Thread  |   Next Thread
alves_boro Posted on 14/05/2019 20:45
Buy to let Properties
 
 
Gents,

Got some money to invest and looking to buy bricks and mortar to rent out. Needing a bit of advice.

What area would you say would be best to buy? Misses wanting Yarm but the yield is less with house prices higher but rent income the same as other cheaper areas. Ingleby maybe? But then there is a lot of houses to rent. What about Linthorpe?

Thanks guys
IP: Logged
1finny Posted on 14/05/2019 20:49

Buy to let Properties

 
Canít advise on areas but just some stuff (forgive me if you are aware)
* 2nd home - ouch on capital gains tax
* Income, of course, is taxable at your normal rate
* If either of you donít pay tax you could buy in that name only
* Tax deductibles are well policed these days - list is on government website

Other than that
Good luck
IP: Logged
Mfc79 Posted on 14/05/2019 20:53
Edited On: 14/05/2019 20:55
Buy to let Properties

 
The cheaper the area the better the return but there is the inevitable higher chance of problems too.

I'm about to sell a house at the minute with a long term sitting tenant. The property is worth about £60k with an annual rental return of £5400 which is 9% annual return. You would never get that return in yarm or ingleby but they are more prestigious areas which means a lot to some people.

I would choose marton or nunthorpe over either yarm or ingleby.
IP: Logged
alves_boro Posted on 14/05/2019 20:55

Buy to let Properties

 
Thanks 1finny.

Will be buying via a ltd company and leaving any income in business account to buy other properties and therefore saving on paying tax on dividends. Will also pay corporation tax and not income tax
IP: Logged
alves_boro Posted on 14/05/2019 20:57

Buy to let Properties

 
Mfc79, selling in the Teesside area?

Totally agree and the wife is coming to terms with that now. Just need good vesting of the tenants
IP: Logged
Mfc79 Posted on 14/05/2019 21:06

Buy to let Properties

 
Yes mate. Have you considered Eaglescliffe if you are thinking of Yarm? I dont know Eaglescliffe too well but I am confident you will get more for your money there with a similar return.

It is essential to vet your prospective tenants, alves particularly if its a property in demand.
IP: Logged
alves_boro Posted on 14/05/2019 21:15

Buy to let Properties

 
Mfc79..... Message me details on your property your selling?

Yeh Eaglescliffe good shout, especially opposite Preston park.

Think Norton would be a good area to invest; house prices reasonable , rental demand high....
IP: Logged
Mfc79 Posted on 14/05/2019 21:17

Buy to let Properties

 
Put your email address up and Ill let you send them to you, alves
IP: Logged
Cuthbert Posted on 14/05/2019 21:18

Buy to let Properties

 
If you're doing a one off buy-to-let, I'd advise going for a slightly nicer area (higher house prices, so lower yields). The trade off is possibly better/more reliable tenants, and less 'down time' between rentals, when the property is unoccupied.
IP: Logged
Barnsy Posted on 14/05/2019 22:34

Buy to let Properties

 
Do your homework, and not just on a forum such as this.

I took out the fully managed option with the letting agency. Well worth it. But at the end of the day, the overall success of the let depends on decent tenants and high levels of communication between all parties.
IP: Logged
Dustbin_Man Posted on 14/05/2019 22:35

Buy to let Properties

 
Depends how much you have to spend on the house.

Anywhere round Fairfield, Hartburn, Eaglescliffe and Yarm would be my pick
IP: Logged
Boro_Boro_Boro Posted on 14/05/2019 22:55

Buy to let Properties

 
Look at a holiday let in Whitby or similar

Higher returns and usually the clientele are better as long as you get the right property.

Someone I know has been doing it since feb and is making a killing. The place has only been rented 2/3s of the time too.

They are making a minimum of 290 quid per 3 days of rental... in the holidays and high season it more than double that
IP: Logged
Heam44 Posted on 14/05/2019 23:10

Buy to let Properties

 
Alves, re: the ltd company, if you are buying with a mortgage the deal you get wonít be as good as if youíre buying in your own names. Probs not worth setting up a ltd company until you have 4/5 properties.

Obviously ignore that if youíre buying in cash.
IP: Logged
middlesbrough123 Posted on 15/05/2019 01:59

Buy to let Properties

 
Just put it in a property investment trust and save ya self the hassle
IP: Logged
borolad01642 Posted on 15/05/2019 04:55

Buy to let Properties

 
I found openrent.com to be decent, but the most important thing with any rental is make sure you find out everything you can about your tennants. [^]
IP: Logged
borolad01642 Posted on 15/05/2019 05:20

Buy to let Properties

 
middlesbrough123.......

Tell me more about REIT's?
IP: Logged
1st_time_caller Posted on 15/05/2019 06:46

Buy to let Properties

 
We also use a fully managed agent. You pay for the luxury, but no phone calls if anything goes wrong and they just take the cost of the fix out of the rent, so no immediate hit. They also guarantee the rent
IP: Logged
GazC_MFC Posted on 15/05/2019 07:06

Buy to let Properties

 
Sure you are aware but each property will come with 3% extra stamp duty assuming you own a house now
IP: Logged
Colloq Posted on 15/05/2019 11:41

Buy to let Properties

 
mfc79 im looking at buying another BTL currently, would be keen to have a look at this if you could drop me an email on chsport1 @ gmail.com

cheers
IP: Logged
Mfc79 Posted on 15/05/2019 19:29

Buy to let Properties

 
Hi colloq, sorry about the delay in responding. Ive been at work all day and only just logged back on. I've got a copy of your email address so you can take it down now if you want. I'll email you the details tomorrow mate.
IP: Logged
middlesbrough123 Posted on 15/05/2019 23:54

Buy to let Properties

 
Borolad .......I get the feeling your already clued up [:D]

Link: Download guide
IP: Logged
borolad01642 Posted on 16/05/2019 05:30

Buy to let Properties

 
Just been reading about them online but I wouldn't say 'clued up'.

They seem to be quite a good long term, low risk investment. Almost guaranteed dividend return without the hassle of buying a property yourself [^]
IP: Logged
middlesbrough123 Posted on 16/05/2019 15:50

Buy to let Properties

 
And compared to property you can sell when you choose and not wait for months or a yr to free your money up .
Plus no estate agency fees just 0.5% stamp duty and small trade commission.
IP: Logged
junouk Posted on 16/05/2019 16:37
Edited On: 16/05/2019 16:39
Buy to let Properties

 
Loads of issues with buy to lets at the moment. Mainly the government rule changes in the next few years based on income and how it is calculated. A lot of the small investors have pulled out, it is just not worth it if you move to a higher rate tax payer bracket. Before you do anything speak to an accountant about the issues and then make sure this works for you.

£100,000 property is now £3,000 in stamp duty (second home, buy to Let) Plus you have capital gains tax on the sale.

Limited company buy to lets are more expensive in rates and costs, it is a business after all. But also as a limited company accountants costs and fees are higher.

If you are looking at taking on a number of properties when you get to 5 properties you become a professional landlord for mortgage purposes, this is again more costs and rules. Some lenders restrict the amount of properties under mortgage and this could have an affect on your residential mortgage (If you have one).

Buy to Lets can be a good investment but tends to be classed as a risky investment. With Brexit around the corner what affect is this going to have on the housing market?

To give you a rough idea, If you bought a house on Teesside in 2008 for £100,000 in 2010 It could have been worth £75,000 (estimate) in 2019 it may have peaked back at £100,000 but only just. The opposite happened in 2004 prices jumped massively. Just shows how volatile house prices are.
IP: Logged
redwurzel Posted on 16/05/2019 18:46
Edited On: 16/05/2019 18:58
Buy to let Properties

 
Prices on Teesside are not back to their 2007 levels possibly 20% below still. Some cheap properties in decent areas, but my feeling is that prices will remain static and there is a lot of new housing going up which might even push prices down slightly.

Where money can be made is renovating if you can do a lot of the work yourself.

I would want to buy a property within a few miles of where I live to keep costs down and you are more likely to know the area.

When I rented out my property in the late 1990s I used a well established and reputable agency/estate agent - they knew the market and the renters and because of this the property was almost let and the rent always paid. They completed all the management - all for 9% fee. I received £6k in rent with costs £1.2k about £4.8k on 28k property over 2 years, but my mortgage interest was probably 3k leaving a profit of £1.8k over 2 years on 28k investment - about 6% return - property did not go up in value. Currently AEW UK REIT is returning around 7% after costs and its less stress and as said can be bought and sold instantly. It can also be put into a ISA and SIPP? AEW UK REIT have some shrewd managers invested in industrial and commercial property only 12% retail. Of course their share price can drop.
IP: Logged
Kezzy1876 Posted on 17/05/2019 02:13

Buy to let Properties

 
Get a 20k terrace in north ormesby for about 20k, rental yield is massive.
IP: Logged
borolad01642 Posted on 17/05/2019 05:53

Buy to let Properties

 
Interesting Red.

It certainly more hassle free than buying property and AEW UK looks interesting.

Im currently working overseas so am not entitled to the ISA 20k allowance, but I still think REITs are the way forward.

I would look to spread my investment across three or four companies [^]
IP: Logged
junouk Posted on 17/05/2019 10:23

Buy to let Properties

 
[^] Redwurzel

Investments or property. Age old question.

property value is always dependant on surveyor and location. It is all about buying at the right time and location. Hopefully the property market does not tumble. But who knows.

Would you say property is more risky than shares?
IP: Logged
middlesbrough123 Posted on 17/05/2019 10:41

Buy to let Properties

 
I suspect the cheaper the property the more hassle and 20k propertyís the hassle could be more drug related .

Obviously Iím just guessing, if you donít have the cash to buy a house outright at an auction to flip the buy to let market is probably about dead .

Iíve walked through a house with needles hidden all over no money is worth the risk
IP: Logged
Previous Thread  |  Start New Thread  |  Top Of Board  |  Top Of Thread  |  Next Thread



Home  |Message Board  |  Top of Board  |  Login  |  Register


Copyright © 2008 to 2019 Fansonline.net Ltd

FansOnline.net Ltd
Unit 7
Brentnall Center
Gilkes Street
Middlesbrough
Cleveland
TS1 5AP
Fansonline Home | About Fansonline | Contact Fansonline | Advertise On Fansonline | Privacy Policy | TOS
10.0.166.213