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

    • Reply to Loft conversion building regs
      by Handy21
      Yes I was thinking they’ve left it so late on in the process in the hopes that when I found out I’d not bother backing out, the estate agents are trying to convince me that it would be fine to let out as a 3 bedroom but I have contacted other letting agents that have said it wouldn’t be allowed...
      27-10-2021, 09:03 AM
    • Loft conversion building regs
      by Handy21
      Hi guys this might have already been covered before but I’m currently purchasing a 3 bed house and near completion our solicitor has managed to find out they don’t have building regs for the 3rd bedroom (loft conversion). My question is can I let this as a 3 bedroom or is it legally only a 2 bedroom,...
      27-10-2021, 07:16 AM
    • Reply to Loft conversion building regs
      by jpkeates
      Unless this place is unbelievably great otherwise, I wouldn't go ahead.
      The seller should have sorted that out, or at very least brought it to your attention at the start of the process.

      And what else haven't they told you?...
      27-10-2021, 08:19 AM
    • Reply to section 21
      by jpkeates
      Section 8 notices don't expire, but some of the grounds are implicitly time based,
      For example, you might find it tricky now getting possession for anti-social behaviour in January 2021.
      27-10-2021, 08:15 AM
    • section 21
      by lavy
      Hi How long is a section 8 valid for before i have to serve a new one . I served a section 8 on 1st January 2021 . can i now issue court application for possesion or has this expired and do i need to now issue a section 8 notice again due to the time that has lapsed . Thanks for any confirmations on...
      27-10-2021, 07:53 AM
    • Reply to Joint tenancy agreement, 1 tenant has already moved out
      by DoricPixie
      In the opening post you said there was 6 month fixed term AST with both your niece and her now-ex-partner named as joint tenants. Now you are saying there was never a tenancy agreement drawn up.

      With the benefit of hindsight it would have been better if you'd had your niece pay money into...
      27-10-2021, 06:33 AM
    • Joint tenancy agreement, 1 tenant has already moved out
      by Yorkie2020
      Good evening all,

      I wonder if I could get some advice on ending an AST tenancy in England.

      Originally a 6 month AST last Sept between my niece and her partner, I foolishly listed both on the AST as joint tenants and didn't list him as a permitted, there was no deposit paid....
      20-10-2021, 19:44 PM
    • Reply to Joint tenancy agreement, 1 tenant has already moved out
      by Yorkie2020
      Guess I've been very lucky this time. My niece has informed her partner that she is ending the tenancy and signing up for a new one in her name only and he is ok with it. She did point out that he will no longer be responsible for any more rent or bills when it's totally in her name.
      JPkeats,...
      27-10-2021, 02:02 AM
    • Reply to Increasing rent
      by jpkeates
      There may be something on the NRLA website, but I don't know of a standard template.

      To be honest that clause doesn't seem to help you a lot, it stops you using a s13 notice (I'd wrongly assumed that because it said "may" you'd be able to) but doesn't actually help you with an...
      26-10-2021, 17:37 PM
    • Increasing rent
      by Berlingogirl
      Tenancy start date May 2020 in England. 6 month initial AST.
      My tenancy agreement says
      “The landlord may increase the rent after the first 52 weeks of the tenancy…..”
      Is there a specific form I should use?...
      26-10-2021, 13:33 PM
    Working...
    X