W are in the very early days of thinking about a buy to let property. I'm fairly cautious given that we still have a mortgage on our own home but DH is keen and we do have a good amount of disposable income.
We can get a 3 bed property for £100k (not particularly nice village but good school catchment). Rental income would be circa £450 a month.
Alternative is to look at 3 bed in nicer village for about £130k (same good school catchment area). Would rent out in a flash. Rental income would still be about £450/£500 a month.
We clearly need to think about this very carefully but before I waste lots of time looking at it does that sort of return seem ok? I think it works out at 6.48% on the cheaper property.
We would put in a 25 percent deposit and have an interest only buy to let mortgage to max out on the tax relief.
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Those who know about buy to let - what sort of rent would you want to aim for on a £100k property?
16 replies
atticusclaw · 10/02/2015 15:26
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