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Original poster

Any property buffs or landlords around? I have lots of random questions............

71 replies

sweetheart · 08/10/2008 15:49

Am looking into a project at the moment and would be grateful for anyone with lots of experience in buying / selling / renting houses.

First off:-

How much contingency should you leave for solicitors fees, land reg fee etc etc when buying a:-
1 Bed - approx £135,000
2 bed - approx £195,000
3 bed - approx £300,000
4 bed - approx £400,000

also anyone with a portfolio of houses - which size rents the best?

OP posts:
noddyholder · 08/10/2008 15:56

I did this for 9 years and got out last year.This is not a good time to speculate on property.Never invest in a falling asset!!!!

Original poster
sweetheart · 08/10/2008 16:02

ahhh so could you answer my questions?????

It's falling currently but there has got to be an upturn in say 10 years - this would be long term investment with no borrowings.

OP posts:
noddyholder · 08/10/2008 16:08

Not neccesarily.Now that british banking has effectively been nationalised i think prices will fall sharply and lending will be seriously tightened.In 10 yrs we will be lucky to be where prices were last summer.I really think above inflation yearly rises is over. Ring a solicitor or get some online quotes etc If you are buying in multiples some solicitors do special deals.land registry fees are about 200.You need to calculate for stamp duty management fees and void periods and maintenance. I would say don't touch it but its up to you.have several friends in deep water in this field of business atm

Original poster
sweetheart · 08/10/2008 16:17

ok just hypathetically then......

how much would you average rental at? Would 50% yearly rental of properties be unrealistic? For budget purposes.....

OP posts:
TheBlonde · 08/10/2008 16:17

have you looked on moneysavingexpert?

Original poster
sweetheart · 08/10/2008 16:20

I use the website occasionally - what for specifically?

OP posts:
TheBlonde · 08/10/2008 16:22

the answers to your questions

noddyholder · 08/10/2008 16:22

Do you mean 50% of the time occupied?

noddyholder · 08/10/2008 16:24

If you are using cash thenm you need to calculate what return you will get in comparison to other investments.You need a good financial adviser.Once you calculate void periods etc plus maintenance and taxes you may not make much more than in a high unterest bond.If you are hoping for capital gains then forget it.

Original poster
sweetheart · 08/10/2008 16:25

yes 50% occupancy

OP posts:
Original poster
sweetheart · 08/10/2008 16:26

I am looking at other investments but with banking the way it is at the moment I'm looking for something which can be secure long term. If it makes money in the process then fine. I also think it would be quite a fun project to run, or am I mad?

OP posts:
bleurgh · 08/10/2008 16:27

I kindof disagree with noddy.

I would be thinking about buying something in the next year or so if it's a long term investment.

The thing to watch would be interest rates and whether they were going to zoom up.. you'd have to do a lot of reading and watching to see what happens.

Also the market will be flooded with properties to rent at lower rates soon I should imagine -- in addition to which if the UK is dropping into a full blown recession you will have a smaller tenant pool depending on the size and type of property you buy.

Then there's your own financial position and how easily you will be able to get a mortgage. It might be really hard to get a mortgage if your income to pay it would be prospective rent!

Original poster
sweetheart · 08/10/2008 16:31

Mortgage wouldn't be an issue as these would be properties brought with cash. I appreciate tat finding tennants may be hard but am trying to be realistic with figures by going with a 50% occupancy - hoping someone will tell me if that is under or over estimating......

Thoughts behind this are, large some of money to invest, would like to do something with it rather than leave it sitting in a bank, something which could provide a good long term investment, and generate some work and income at the same time - of course I would want it to be profitable

OP posts:
KatieDD · 08/10/2008 16:35

Nooooooo houses are for living in, buying them for investment is morally wrong.
But even if you must, hold off, put the money in the bank wait until everybody you speak to tells you it's a terrible idea to buy a house, when you can buy 2 for the price of 1 at the moment, that's when you buy.

Original poster
sweetheart · 08/10/2008 16:35

ohhh come back - you were being helpful - PLEEEEASE!

OP posts:
Original poster
sweetheart · 08/10/2008 16:36

morally wrong - oh dear, why's that.

Well I'm kindof hoping that by the time I've put this proposal together there will be repossesions galore and I can snap up a few or 20 bargains!

OP posts:
KatieDD · 08/10/2008 16:37

A fun project ? Are you off your head lol
Getting called at 3am by tenants who want their boiler fixed now and one of them is very big with a big dog and frankly the wife was scary too, is not a fun project.
Bonkers, the bank will not cause you headache's, tenants will regularly.

KatieDD · 08/10/2008 16:38

Morally wrong because guess what young couple's want to buy their own homes and raise their families in them, not pay rent to you given the opportunity.

Original poster
sweetheart · 08/10/2008 16:47

ok well I guess I have no morals and am bonkers then

OP posts:
FiveGoMadInDorset · 08/10/2008 16:51

sweetheart - look for flats/houses (old flats not ones built for invetsment purposes) in towns with students/big hospital/ etc as it will let better, I have a small 2 bedroom flat in the centre of Bournemouth which has never been empty since I bought it, I also let through an agent and worth the fees as then the tenants deal through them.

Original poster
sweetheart · 08/10/2008 16:54

Thanks five - student lets are next on my list but the nearest uni town is about an hour away from here. I'm going to do my plan based on the local market (which I know better than the uni town) and then mould it from there to see where the best profits could be made.

The plan is not just to buy the houses but set up the lettings and maintenance companies too so it's all done by little old me yep - totally bonkers......

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Original poster
sweetheart · 08/10/2008 16:56

so from experience, anyone who is still willing to chat:-

what size property is the best to buy and rent? Which is the easiest to rent out or which gives the best return?

1 bed flat / house
2 bed
3 bed
4 bed
etc etc etc

OP posts:
MadameCastafiore · 08/10/2008 16:58

Dhs fave saying - Doon't try and catch a falling knife!

inscotland · 08/10/2008 17:03

I'd say 1 or 2 bed places. Anymore and then you could be into renting to students and that then takes you down a whole other set of regulations for houses with multiple ocupants, ie those who are not co-habiting or related.

If buying cash then yes, I think it is a good investment provided you buy in the right places. I have several properties all within walking distances to hospitals/universities/city centre. They've never been empty in the close to 10 years I have been doing this.

Research, research and when you are confident then buy. May be speak to a property letting agent until you know what you are doing.

Zazette · 08/10/2008 17:09

There is loads of info about this kind of thing on the internet already, and a number of published books. You need to research it pro-actively, rather than relying on people to answer your questions for you, because that way you are bound to get at least as much opinion as fact - as this thread shows!