anyone buy to let?

[hercules]

We cant get a large enough mortgage to buy fully where we live as we are currently shared ownership but would still like to invest in property in a cheaper area and still live where we are.

Anyone done buy to let and has any advice or tips?

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yep, we have, in London.

What stage of thinking about it are you at? Do you know the rental market in the areas you're thinking about, for example? Have you got enough saved for a deposit (you generally need at least 15%)?

We wouldnt do it for another year as are planning a nice holiday next August and then would save up deposit.
We were thinking of buying in Devon or even abroad.

are you planning to move there eventually yourself? Otherwise I would try and get something that isn't too far away from you.

We are about and hour away from our flats (it wasn't particularly planned that way though) and do most of the management by phone (e.g. calling out plumbers and electricians), but it's handy to be able to get to the flats ourselves if we need to - e.g. the tenants wanted us to paint the bathroom ceiling a couple of months ago cos it was a bit mildewed, and it was pretty straightforward for us to get there and do it ourselves.

You can pay agents to manage the property, but they tend to take 15% of the rent so it's harder to make it work as an investment that way.

The headachy bit is probably finding an area where you can buy cheaply but there's a decent rental market so that you can find tenants easily and avoid vacant periods between tenants where you've got no rental income to pay the mortgage.

The mortgage you get is determined by the value of the property and the market rent for it - the rent needs to be able to cover the mortgage plus a bit extra (the percentage added varies between lenders). This means you need a good feel for the market rates when you're choosing a property. On the plus side, your income isn't taken into account.

hth a bit.

We bought a buy to let flat as dh is in the Forces, so we don't anticipate living in a house we buy for a few years yet.

Because it is our only mortgage, we didn't have to get a buy to let mortgage. As it's a normal mortgage, it is secured on our earnings (good thing as rent doesn't cover mortgage ) and we didn't have to save for a huge deposit.

We're just looking long term, and hoping that it will all come good in the end - i.e. that one day the rent will be more than the mortgage, and so essentially in 25 years, we'll have a free house!

Laura, do the terms of your normal mortgage allow you to rent out? Who's it with? Am interested as we couldn't find one that would.

if you would like to buy a nice 3 bedroom house in essex .id like to rent one for 3 years

Thanks for replies!