Would like to buy a btl

[BobbyDazzler99]

We have come into some money and would like to buy a btl property.

We are thinking a student house would be a good choice.

I would like any advice on pitfalls please. Perhaps even to dissuade me from such a venture.

A friend of my mine owns a few student houses. He had to put fire doors in. Lots of safety measures iirc, though it’s quite lucrative as he’s had the houses for 20 years and he works on and off now as he doesn’t need the money. It seems to have worked for him.
I’d contact the council to make sure you know the rules wrt student accommodation.

Longdistance I'm sure it is quite lucrative for someone who bought 20 years ago!!

I take it the OP isn't quite up to speed with all the many and varied disincentives that have been and are continuing to be being put in place to discourage amateur, property empire entrepreneur wannabes?

In most university cities the demand for private rented student property is actually falling as many universities are investing in onsite halls accommodation.

There are far more sensible, easier and safer ways to invest money these days than the once lauded BTL.

For a first time property investment, student housing would be hard. Do you know the regulations on HMO's? Have you looked into the tax position. It is a lot of legal and practical responsibility. You'd need a good up front fund for repairs - who will do these as an emergency? If an Agent manages the property you still have all of the legal obligations so need to monitor them carefully.

It would be an existing student property with all the fire doors etc in situ.

Whilst btl has come under increasing pressure, it could still be a profitable venture? Clearly not as profitable as 20 years ago but still worthwhile.

What other ways would be wise to invest?

First of all look at the taxation of btl to understand what you’re up against these days. Not many people can make it work.

Other ways to invest would be under the ISA, LISA and pension wrappers. You could speak to a IFA to come up with a suitable portfolio if you don’t feel confident enough to make own decisions.

In most university cities the demand for private rented student property is actually falling as many universities are investing in onsite halls accommodation.

Yep, in my city there's a glut of ex-student housing on the market and most isn't shifting. The local uni has had several blocks of new accommodation built on site and there are several private purpose--built accommodation blocks newly built in the city too. It seems the days of 6-8 students living in a run down terraced house are coming to and end. They're wanting their own en-suite room, with ultra fast wifi, communal kitchens, communal lounges, on-site gym, etc which is more easily provided in blocks.

@Kazzyhoward which city is that?

DH thinks IFAs only want to sell products and he doesn’t trust them.

DH thinks IFAs only want to sell products and he doesn’t trust them

But he trusts something he knows nothing about.

I wouldn't rent to the student market - surely it's better to rent to people who are working so that you get income throughout the year and without a turnover every summer?

I agree with your DH re IFA

It's not so difficult to work out the tax position of BTL so you can have some idea of what you are facing. A friend has a couple instead of a pension. They target more mature, Master/PhD students in single flats

Buy cutlery, crockery, saucepans etc new from Ikea for each let. Freshly decorated too and charge a premium to attract tenants who will look after the place.

Each let typically three years, often for affluent Chinese at the local university. Relatively little impact from Brexit uncertainly.

Good luck.

Oh, key message, it works for her because her DH is very handy and can do most maintenance tasks quickly and at cost.

Would you to factor in agent's fees?