Newbie Thinking of Renting Props - Advice Needed

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Newbie Thinking of Renting Props - Advice Needed

    Hi - hope you can bear with me as I am a complete newbie, so I apologise if I seem to be asking stupid questions.

    I am thinking of raising some money by way of a further advance and putting it towards a rental prop (or two)

    Some questions.

    1. I was thinking of putting as much deposit as I can down on a rental prop, but I have heard this is not 'tax efficient' - is this true? I was under the impression, the smaller mortgage payment I pay - the more rent I can keep? I beleive it has something to do with off setting the mortgage interest on your tax return. So is that true - better to have an outstading mortgage balance?

    If so, how much deposit would you be looking to put down on a BTL prop? 25%?

    2. Secondly - what sort of props are best? Flats? Terraced? Semi's? I could raise about £50k on my prop - did'nt know to put this down on one prop or a £25k deposit on two?

    Is buying two straight away a bit too much though?

    3. I would presume it is best to obtain a letting agent? What about a management agent? They take their monthly fee's or is it better to do it yourself? Pro's and con's of both I suppose. If you pay a letting agent what are they doing bar collecting the rent? Could'nt you do that? Same with the Management companies, I understand they arrange repairs but you still pay for them? What is the benefit of paying them the 15% or say charge to do this?

    I understand some g'tee rent when the prop is empty, but I guess their monthly fee is higher than 15%.

    4. I understand some mortgage deals have minimum income thresholds to qualify for a BTL mortgage - can see HSBC is £35k pa, my income is less than this. Can you get it on residential terms and then apply for Consent to Lease? Or are there other mortgage rates available.

    Any advise would be greatly appreciated. I'm just wary about dipping my toes into the BTL market.

    Thanks in advance

    #2
    Originally posted by Fiery Phoenix View Post
    I would presume it is best to obtain a letting agent? What about a management agent? They take their monthly fee's or is it better to do it yourself? Pro's and con's of both I suppose. If you pay a letting agent what are they doing bar collecting the rent? Could'nt you do that? Same with the Management companies, I understand they arrange repairs but you still pay for them? What is the benefit of paying them the 15% or say charge to do this?

    I understand some g'tee rent when the prop is empty, but I guess their monthly fee is higher than 15%.

    Any advise would be greatly appreciated. I'm just wary about dipping my toes into the BTL market.
    The link below is a good guide for new landlords. Have a good read and read all of the links.

    http://forums.moneysavingexpert.com/...2&postcount=12

    Comment

    Latest Activity

    Collapse

    Working...
    X