New To Buy To Let

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  • New To Buy To Let

    Hello all,

    I have recently been made redundant and looking to buy a buy to let property.

    Having had a meeting with a mortgage advisor I am told that I will need to put down 15% with certain lenders.

    I am currently looking at a couple of properties in my area both repossesions and in need of a bit of work,I can convert one property to 3 bed with little effort and cost.

    I have a building trade background and have worked on lots of properties for local developers so I would be able to keep labour costs very tight.

    I guess the question I would like to ask is what advice would you give me as a person looking start off in this sector.

    Any constructive advice would be really helpful

    many thanks

    thecoder0

  • #2
    Originally posted by thecoder0 View Post
    Hello all,

    I have recently been made redundant and looking to buy a buy to let property.

    Having had a meeting with a mortgage advisor I am told that I will need to put down 15% with certain lenders.

    I am currently looking at a couple of properties in my area both repossesions and in need of a bit of work,I can convert one property to 3 bed with little effort and cost.

    I have a building trade background and have worked on lots of properties for local developers so I would be able to keep labour costs very tight.

    I guess the question I would like to ask is what advice would you give me as a person looking start off in this sector.

    Any constructive advice would be really helpful

    many thanks

    thecoder0
    Hi,
    Hey good luck with your venture.
    You'll probably read and hear a lot of bad press about BTL at the moment. This is nothing really to worry about as long as you do your maths correctly and budget yourself or cover yourself for any eventualities.
    The 15% deposit thing is probably about average. There are companies that are lending 90% and there have been reports on here that some are lending 95% although I haven't seen any as yet. Of course you have to weigh up the costs of putting a lesser deposit down which subsequently increases your monthly repayments.
    Remember to buy at the right price, don't be tempted to overbuy and leave yourself short of mortgage money. Ensure that your monthly rental income more than covers the mortgage repayment. Plan for possible interest rate hikes aswell, and build that into your figures.
    And of course there are a whole load of problems that can arise by placing the wrong tenant in your property. You can either go-it-alone or find a 'good' agent to get you a tenant, they will reference check them and check their ability to pay etc. There's a whole load of legal stuff that you need to get your head around but an agent should help you with all this.
    My advice if you do go it alone would be to come in here regularly and ask if you're not sure. Use the search facility and read older posts about the same or similar subjects.

    God I've drivelled on haven't I. haha
    anyways good luck with it all.

    Gareth
    Ambition is Critical

    I don't profess to be a knowledge in all areas, my advice is based on life experience.

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    • #3
      Gareth,

      Many thanks for advice,any and all is welcome.

      One of the reasons I am looking to get into buy to let is that for the last couple of months I have been working on several projects for a local property developer who has some thirty plus properties in my locality.

      One observation I have made is that when it comes to business savy the guy is very good,fnancial advisor of 25 yrs. he is obviously very sucsessful at the sharp business end,but in the last 5 weeks I have saved him nearly 5000 grand in building materials and labour.

      Anyhow now I am waffling,but the guy has now literally ripped out and refurbed some 9 dwellings and if the ones i have seen are anything to go by waisted a few quid along the way.

      I am hoping that with my building trade experience and his help I might just be able to make a go of it.

      Once again thanks for the advice it is very welcome

      thecoder0
      Last edited by thecoder0; 24-05-2007, 15:58 PM.

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      • #4
        Originally posted by thecoder0 View Post
        I have just struck a deal with him for a spot of mentoring , my only concern is he does seem to have some strange methods of operating.
        Like what...?!

        Comment


        • #5
          Yeah sorry that sounds a bit sinister..The bloke is a top bloke he just runs around at 100 mph and seems to be working on the back of a fag packet , but he is a very sucsessful business man I am a not so who am I to speak.

          Just for clarification and to avoid any misunderstanding ....HE IS A TOP BLOKE !

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          • #6
            Sorry to give the wrong impression what I meant was the guy seems to operate off the back of a fag packet........But hey he is very sucssesful and I am not so who am I to judge.

            Just for clarication the guy is a top bloke

            end of !

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