Many thanks to all responders.
I think I've seen enough to put me off the idea. My estimate of £500 may have been a little low.
However, having fallen foul in a way with Part P, the talk of tighter regulation on rental property (under East Riding Council) makes my blood run cold.
A number of interesting and clearly well-informed posts - thanks
Phil
Your're not the only one then? Whereabouts are you out of interest? I'm just outside the Hull boundary.
Quite!
The post-war PRS has always been about capital appreciation to some degree. Without that, it's a poor return on capital. If you're devious with tax you might just get a return.
However, for BTL-types I do think there's a tendency to think in terms of retirement lump sums and fleecing pension funds - therefore the rationaility gets a bit twisted, and cash returns are replaced to some extent by 'safe as bricks and mortar' thinking.
Rob
Now some years ago I used to do a lot of work for a couple southerners that were buying properties in run down areas of South Yorkshire, tarting them up and renting them. They sold up just before the crash.
Today they phoned me up to say that they are going to now do the same thing again.They will again be going for the terraced house and DSS tenants market. They made themselves rich the first time round doing this and they are going to try to make themselves even richer.
Some houses made a loss in the rental part but the price of the house increasing made them their money.
The guy I know that bought 3 bed semis for a better class of customer had 3 of them turned into cannabis factories that cost thousand to repair.
Rental market seems to be booming inside the M25. A lot of flat owners are stuck in the stamp duty trap and cannot afford to sell.
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"Booming" and good yield/good tenants are not the same thing. The only positive that a booming rental demand offers you is limited voids. All the other risks are still there
tim
Many thanks to all responders.
I think I've seen enough to put me off the idea. My estimate of £500 may have been a little low.
However, having fallen foul in a way with Part P, the talk of tighter regulation on rental property (under East Riding Council) makes my blood run cold.
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How's the holiday rental market there?
Total yields are much better, and tenants tend to be "better behaved", so there isn't really much extra effort in running it (you can employ a local cleaner for the weekly handover), though obviously there's extra effort/cost in marketing plus the initial furnishing.
The treatment for CGT on exit is better as well
you can buy 6 of these:
or perhaps 2 of these:
tim
Taking a sidestep, you could buy a 2 bedroom place in Turkey for £30k or less get some (not a lot) rental and have a holiday home for yourself. It is safe to buy there ONLY if you get proper guidance from someone who knows the system.
It's just a different form of investment. At least, with £150K invested in a property, you will always have some land and a pile of bricks to show for it. In a bank it could just be wiped out, and you may or may not get your guaranteed £85K back sometime in the future.
Some types of property can also be a bit more profitable than others; for example a studio flat could be let for proportionately more rent than a house, and being cheaper, can be more attractive to tenants. (And actually most of my experience as a landlord has been to let by the room, where you can make even more money compared with letting the whole house.)
"Part Timer" wrote
Swanland - no not the part where the monied gentry hang out :(
How about you?
Phil
"tim....." wrote
I'm not sure there is such a thing as a holiday let market around Hull! Handy for the Humber Bridge, but that's about it.
Really would need to be heading north towards Beverley orYork for that to be a realistic option I suspect.
Phil
"tim....." wrote
I'm not sure there is such a thing as a holiday let market around Hull! Handy for the Humber Bridge, but that's about it.
Really would need to be heading north towards Beverley orYork for that to be a realistic option I suspect.
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That's still close enough for you to "manage" problems yourself.
Holiday home investors don't expect to live in the same village. The same county is more than close enough
tim
Cott.
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