Buy to let? Now or wrong time?

[justgeton]

Have been looking at a BTL for a while. Probably a flat, in a uni city.

However given the issues the students are having, the uncertain market, etc etc., would you? Or wait?

If the rent is required to pay the mortgage, then I’d be careful. I wouldn’t do it right now. If you are a cash buyer, you might get a better return with an investment bank portfolio. Less worry probably!

I agree with the above. Even without a mortgage you need a rainy day
fund to help with the unexpected.
Currently the notice period is 6 months and so Landlord insurance
is hard to get due to this or expensive.
Could you cope with the massive legislative burden in the pipeline?
Getting tough for smaller landlords these days
The golden rule has always been; Good tenants or not tenants

I have never seen as many student houses come up for sale as I am doing now in Leeds. We have 6 universities in Leeds. I wouldn’t do it, something is making those landlords offload their property.

There appears to be lots of flats for rent and hmos up for sale in our university city. I think I would wait

Post on Landlordzone, you’ll get access to far more landlords who are clued up on legislation, current climate in student lets etc.

Personally, we aren’t buying any more btl. It’s hard to get decent returns + the tax regime isn’t brilliant not to mention the current economic climate. There’s only so much you can invest through pensions or ISAs but even if you have taxable investments, it’s less hassle and much more liquid than btl’s.

Sorry, by investments I mean in the financial markets.

I wouldn’t touch city centre flats at the moment. We let 2 x mortgaged flats in city centres and if I could sell them tomorrow for “market value” I would.

However I can’t because one is affected by the cladding scandal, and we don’t have an EWS1 for the development. It’s a nightmare not being able to sell and not knowing what our liability to make the building safe will be. Although we don’t live there I don’t feel we can move or make significant financial decisions etc because there’s this unknown hanging over us. The other needs the balconies replacing and we’ve been told we could have to pay up to £1500 for that. Again unmortgagable.

City centre agents are a rip off too. Your first month’s rent will be swallowed up with fees. Furnished lets are a rip off. As soon as you have a tenancy changeover they want new mattresses, sofas, the walls painting etc.

This is before you even start to think about lease issues and government interference and taxation changes, which only ever gets worse.

If you want to try BTL- then buy a small, cheap freehold house in an OK but inexpensive town. But if you want an easy life don’t bother with BTL!

I have some money coming next year and would buy another house.. currently have one house let no mortgage on it I do low rent and long contract and tenants stay at least 12 years on average..better return than cash in bank and house usually increases in value... people always need housing !

All the indicators are to not do this now. I had a BTL and rented it out fine, near a mainline station, but the legislative changes that are now in force or planned just make it a total ballache so I got rid as it became more of a distraction. Especially now, if you get a bad tenant then you are totally powerless to shift them. If you plan to do this as a business then maybe but it's not something I'd be keen to jump in to right now, or for the next 18 months at least.

Thank you all for your comments.

Oh wasnt aware of new changes...i have spent on the landlord licence and new electrics etc but am lucky and have lovely tenants who said they will stay as long as i own the house...they pay about £400 a month below market rent, and house has gone up about 200k over the years...i just dont know where else to put my inheritance of about 250k..?? banks are paying essentially zero these days !