...to consider a buy to let

[owlborn]

So, very recently DH and I came into some money. It hasn't made us millionaires, but it has enabled us to become mortgage free an an exceedingly nice house in our mid thirties/early forties and left us some money over.

The amount we have is enough to put down a 50% deposit on a reasonable flat in an OK part of our home town. The property market here is solid but not London. There is a university and a thriving rental market. We think the rent would more than cover the deposit and a bit more from our research.

The idea would be that we would get a buy to let mortgage in my name. The flat would solely be in my name and I would look after it and deal with tenants etc. This would hopefully give me a small amount of income and some security while I am a SAHM (not pregnant yet, but hoping). And in the long run it would provide investment/pension income.

I keep thinking about it but I worry that this isn't an ethical choice. I hear a lot about BTL landlords and landlords in general impacting on the housing market negatively and making it hard for people to find homes. Can one be an ethical landlord? What should I be considering?

(Practical advice also appreciated, even if it's that we don't have enough equity or DH will need to get the mortgage or have his name on it as he has a fairly decent income)

[pinkdelight]

If it's your best investment opportunity, why not? University towns need landlords and you sound like you'd be a good one. One property to pay your pension is hardly like the unethical bastards driving the poor out of London.

[Theycallmemellowjello]

No sorry, I don't think it is ethical. The reason the housing market is so inflated is this so many people use it as an investment, and it makes it so difficult for many. I understand the temptation though as it's a very safe investment with a fantastic return. I wouldn't blame you if you went for it, but fundamentally think it is unethical.

[fiveacres]

I didn't plan to become a landlord but I am and I consider myself an 'ethical landlord' I don't demand a huge deposit and I let tenants redecorate and do their own thing so to speak.

It suits both parties.

[NinkyNonkers]

Likewise. You can be an ethical landlord, charge reasonable prices, look after your property and treat your tenants with respect.

[JohnCusacksWife]

Of course it's ethical, especially in a University town. Most students aren't able to and/or don't want to buy houses. They want to rent and you're providing a service. Sounds like a sensible plan to me.

[viva100]

Despite what the media says, we do actually need places to rent. What's unethical is landlords who charge huge deposits, charge 150 pounds to clean the oven at the end of the tenancy, leave the students with a huge whole in the ceiling of the kitchen for 4 months making the kitchen unusable, letting themselves in all the time, let mould grow everywhere, leave cracks in the ceiling so that when it rains it actually rains in my room too, never fix the windows so one has to stay with the window cracked open ALL THE TIME. All this happened in my student house in my 2nd year of uni. Oh, and we paid 1800/pounds for 4 people for the privilege of living there. It looked perfect when we viewed it and fell apart from the second we moved in.
Look, if you don't buy the place, someone else will. We need more good landlords out there. Moreover, you have to look after yourself and your family. Don't miss out on a good investment opportunity bc some people choose to blame all the ills of society on BTL landlords.

[LazyLouLou]

Ignore the 'it's unethical' brigade. People need to be able to rent. They always will do.

Good landlords in Uni towns are a highly valued resource. Get in touch with the university housing office and ask them what housing stick they are short of and see if you can meet that need.

Then contact a local letting agent and see what they are short of, see if you can meet that need.

Then at least you will have something concrete to base your buying choice on.

Good luck.

[TTWK]

No sorry, I don't think it is ethical. The reason the housing market is so inflated is this so many people use it as an investment, and it makes it so difficult for many

Political dogma over common sense.

It's a university town. Thousands of students who don't wish to buy and only want to rent. What should the students do, sleep rough whilst they wait for a place on social housing?

[Contraryish]

I'm looking at this from a different perspective. We had a property that we rented out for ten years and I would never go near buying another rental property again. It just about broke even after all the repairs, court costs, unpaid rent, etc. but cost us so much grief in terms of non-paying tenants, damage caused, etc. that it just wasn't worth it as an investment. I'd invest in the stock market or premium bonds or just hide it under the mattress instead!

[NoArmaniNoPunani]

I think you should see a financial advisor. It's always best to diversify investments as any investment can go up or down in value. I think also if you are planning to be a SAHM long term then a pension for you might be a better bet.

[BaronessBomburst]

I'm with Contraryish. However much hassle you think it's going to be, multiple it by ten, and you're getting close.
And don't let to students. They'll wreck the place and piss off the neighbours.

[TedAndLola]

Yes, YABU. You've identified that it's not an ethical choice and you're right, so why go down that route?

If this money will enable you to be mortgage free, that's a huge saving for you - use the extra money to support you as a SAHM and to save up for your retirement. Then you don't have to worry about investments.

[fiveacres]

I've never had hassle with mine, just to balance things out somewhat.

[manicinsomniac]

Of course YANBU. Especially in a student town. Where on earth would students live if they couldn't rent houses??

The problem with BTL landlords is those property moguls (I'm not sure if that's the right term) who buy up dozens of houses/whole developments of flats and rent the lots out to make an extortionate property.

People who own one home in one part of the country and rent one in another or who are lucky enough to own an extra one to rent out to cover the mortgage really aren't the problem.

[x2boys]

yes why not as long as your a good landlord i have owned and rented and owning isnt all that when you havent got the money to put things right when things go wrong so with renting thats somebody elses responsibility i,m in council now so i,m lucky to be secure but people need good landlords.

[however]

buying to let isn't unethical. How anyone can make a blanket statement like that is beyond me. I don't want to buy where I live. Im here temporarily. I'd be screwed if I couldn't rent! I could say the same about roughly 19 houses I've lived in over the last 20 years.

[however]

19? should be 10.

[AntiHop]

There's a very important way that you could be an ethical landlord. Rent your property to someone on housing benefit. Many landlord and agents refuse point blank to rent to anyone on housing benefit, leaving those people with few options and often the options are only appalling housing.

[TTWK]

buying to let isn't unethical. How anyone can make a blanket statement like that is beyond me.

Because people get so involved in political dogma that they lose their ability to actually think!

[TTWK]

use the extra money to support you as a SAHM and to save up for your retirement. Then you don't have to worry about investments.

Let me guess....you're not a financial advisor, are you?

[Namelesswonder]

I live in a university town and rent out a flat - I make sure I only rent to mature students or post-grads, that helps to cut the damage risk. Never had any problems with unpaid rent in 10 years of renting. Go for it!

[Cherryblossomsinspring]

It sounds like a good idea for investment. Just do your homework and if you go ahead, yeah, be a decent landlord. Ignore the 'unethical' brigade. This is both a job and a pension for you.

[pigsDOfly]

Of course you can be an ethical landlord. And in a university town that's doubly valuable as pp said there are so many out there that think letting to students means it's ok to expect them to live in a hovel and charge massively inflated rents.

Having been a LL for several years now I can tell you, as others have, that it's not all 'buy the property and watch the money flow in', that's nonsense.

For a start you might find you only just about break even on the outgoings and income for a few years and believe it or not, it's not only LL who can be unethical.

I have a wonderful tenant in my house at the moment but before that I had one who sublet the house at a vastly inflated rent and left me with a leak damaged house - told me the people were relations staying with him short term - and another one who didn't pay any rent or utility bills after the first month; took me six months to get that sorted out involving court orders and bailiffs.

Fortunately my LLs' agent was insured for that sort of thing so I didn't lose all 6 months' rent. But the house needed new carpets throughout and had to be redecorated top to bottom.

If you're careful it can be a good source of extra income, but it can also be a massive headache. Not sure it's the easiest way to invest spare money. Unless you really know about renting out property, would advise you to get a good, ethical, reliable LLs' agent.

I live 90 or so miles away from my rented out house and I have a fantastic LLs' agent. They have been amazing and without them I think I would have given up with it long ago.

[JackShit]

'exceedingly nice house'

It's unethical. You won't get a balanced view amongst the richies on here.

[whois]

Not ethical? There is a NEED for people to be landlords so people who don't want to/can't buy can rent and live somewhere.

Uni students NEED to rent rather than buy.

Buy a decent property, maintain it well and deal fairly with your tenants.

Be aware being a landlord (esp to students) is not hassle free and you need to watch HMO regulations and they will constantly call you saying the Hoover is broken because they have hoovered up some string and other annoying things.