BTL

[moveblues]

I've got the opportunity to get a BTL in a very up and coming area which could be a good LT investment. A train station is due to be reopened in the area.
As I understand it mortgage rates are usually interest only and 25% deposit.
Rental fees would be about £850-900 pcm for this property costing £180k.
Could this be a good investment to make?
I'm a higher rate tax payer so not sure the day to day would work out well!

When will the train station open? Unless it already is or nearing the end of construction don't count on it.
You have to get 125% of your mortgage repayments in rent plus have outside income for a buy to let loan.
Remember the extra 3% stamp duty you must pay.
If it is a flat be sure to calculate the service charge and any extra expense.
Will it be managed? That's another 10% at least off your rent. Rumours have it interest rates really might start to edge up, this could wipe out any profit.
Void periods and maintenance.
And of course what happens if your tenant can't or doesn't pay? One of mine paid half their rent during the first lock down and is still only paying three quarters of it now. One tenant stopped paying altogether (I terminated the agreement and it had nothing to do with Covid). Evicting is a long process and can be a real nightmare.
When you come to sell you will be subject to capital gains which may increase.
Really do your sums and research.

A record breaking 56% of landlords have lost rental income during the pandemic, can you ride that out?
I personally suspect that figure is higher too.

A real risk you could be buying at the top of the market too.

BTL is not the cashcow people think it is.

It’s currently a sellers’ market, so unless you know the area well and are very sure that you could get the property for a good price, then I wouldn’t bother.

Have a good look around this website to work out what you need to consider:

www.propertygeek.net/#