Buy to let

[vinoandbrie]

Hi

Has anyone any advice on the current buy to let market. We’d be potentially looking to buy a two bed flat as an investment, I’m thinking perhaps a new build would work well.

Advice gratefully received. Am across the tax aspects, but a novice on all other BTL-related matters.

Thanks in advance.

Flats are generally not good investments as you have to pay the lease and often maintenance charges. Fewer people are happy to be living in a flat since Covid. Most now want some outside space they can have exclusive use of. Houses rent out better than flats. Easier to sell a house than a flat and houses seem to hold their value better than flats. I would never buy a flat.

Where? A student hotspot might be good. New builds tend to have a premium so wouldn't be keen on one. Will you self manage?
There are landlord websites with loads of info.
Buy to let can be a decent investment but requires a lot of research first.

i have a few...dont touch flats or new builds...no leasehold....go for a small house freehold....as mentioned...new builds are over priced so you lose money instantly you buy one. join some fb groups and read the posts.

Thanks, that’s interesting, to go for a small house over a flat. I had been thinking about buying into one of these all singing all dancing blocks of flats for young professionals that have a concierge / gym / cinema room, located right in a city centre and so on. I thought this would be sound as young people would in theory be attracted to this type of block.

Better it seems to buy a small house with pocket garden as a freehold?

I bought a flat as an investment. Town centre private parking and not expensive to rent. It was a bloody nightmare the years we had it. Hard to let and harder to sell.

That flat with a lot of amenities will come with a hefty service charge which YOU have to pay.

Ha, good to know, makes sense.

Can anyone recommend any places that would be good to invest in, say a two bed freehold house. Am thinking Liverpool may be a decent location?

Don't necessarily agree about flats being terrible. We have a flat in a very unglamorous town 30 mins from London. It rents for £1000 per month. It's a two bathroom two bed flat, quite nice once you are in it but honestly the area is dodgy. It rents very easily to young couples or groups of friends. Most of them seem to work in London. They absolutely wouldn't want a house. They wouldn't be able to maintain a garden. They like the sociability of the block. They don't stay long, but that makes it easy to put the rent up. I find it hard to believe there is anything unique about this okayish flat in Basildon.

A flat in Liverpool would probably rent to students. I have a rental flat and it’s true it can be harder to find tenants than a house. I’d be wary too of these new developments, someone ( the developer, builders etc) is taking a cut and they also tend to be small inside.

I have a terraced house that was already turned into 2 flats when I bought it. Wasn't really converted that brilliantly, and there are always jobs to do in these characterful Victorian houses. But owning the whole (otherwise modest 3 bed terrace) building means no discussions needed with other stakeholders. Just have to make sure I chose tenants that will get on as there are shared access areas.
One tip I always follow is only buy in a street you would be happy to live in yourself.

Look at Leeds and surrounding area - property relatively cheap in Morley which is on rail line for commuting. Horsforth very popular.