Property

[dt01pqt]

You've been lucky, as far as your tenants not owing money at the minute, make the most of it, they can end up owing you 9mnths rent before you can get the baliffs in to evict.

I'm not saying don't let, I'm saying that you need to be aware of the pitfalls.

Yes it is important to choose your tenants well. Ask for references.

Banks provide a service where in cooperation with an account holder (tenant) is good for x amount. There is sometimes an administration cost but at £10 or so it is worth paying.

It is true you are not allowed to cut of water/ mains/ or gas. But it is perfectly legal to cut off the phone lines. You also don’t have to wait 9 months to change the locks. 3 months notice is usual.

 

[jsanders]

I knew if you posted enough you were bound to say something I agree with

I had to read that twice.

 

[jsanders]

I think a general rule should be diversification.

You should never have so much invested in one avenue that you can’t afford to loose.

It would be prudent to have an exit strategy for any investment.

Many people have realized huge returns on real-estate in the last five years. This alone should make you leery of too much speculation in the market. If you are going to invest in residential rental property (and if your just starting out that would be the safer than commercial property) you should check out the following:

1. Proximity to good schools
2. Commuter distance from major commercial area
3. The means affordability for the local population
4. The local governments forecast on job growth
5. The availability of developable land in the area
6. Comps and time on the market statistics for the local area
7. Find out how far into gentrification process.
8. Are the prices in the area going up faster than income verses current affordability?

Remember the Realtor’s credo: location, location, location.

 

[dt01pqt]

I think a general rule should be diversification.

You should never have so much invested in one avenue that you can’t afford to loose.

It would be prudent to have an exit strategy for any investment.

Many people have realized huge returns on real-estate in the last five years. This alone should make you leery of too much speculation in the market. If you are going to invest in residential rental property (and if your just starting out that would be the safer than commercial property) you should check out the following:

1. Proximity to good schools
2. Commuter distance from major commercial area
3. The means affordability for the local population
4. The local governments forecast on job growth
5. The availability of developable land in the area
6. Comps and time on the market statistics for the local area
7. Find out how far into gentrification process.
8. Are the prices in the area going up faster than income verses current affordability?

Remember the Realtor’s credo: location, location, location.

Hi jsanders,

It the UK for long term rental you should usually avoid families. Not because of breakages, but because if they are not in a financial position to get a mortgage they may be juggling their finances which is always risky for you. Even if they say they are renting their own property out I would avoid.

What is really a big money spinner is short term relocation in high class rentals. My mother used to work in relocations. This is where foreign business men/women are brought over by their firm for a period to pay a job and the firm pays for the rental. The rotation is good so long as the economy is strong. Unless you own a high class property you won't be able to exploit this.

 

[Rich]

Hi jsanders,

It the UK for long term rental you should usually avoid families. Not because of breakages, but because if they are not in a financial position to get a mortgage they may be juggling their finances which is always risky for you. Even if they say they are renting their own property out I would avoid.

That's where the bulk of the market is except down here where of course it's STUDENTS

 

[dt01pqt]

That's where the bulk of the market is except down here where of course it's STUDENTS

The bulk of the market is DINKY (Dual Income No Kids) and YUPPY (Young Urban Professional). Students are a big sector but usually work on short term contract (12 months or less) or informal room lets. If you are going to start a family you want bricks and mortar, even if it is a small house to start with.

 

[Rich]

Students are a big sector but usually work on short term contract (12 months or less) or informal room lets.

10 mnths joint and several for students, 6mnths shorthold for all others

 

[skea]

Here is my 5 cent. If you are to invest in property, do invest in an asset and not a liability.As someone indicated it depends on the place where u are, but its best to invest on foriegn land.
Where i come from in Uganda,i would go for real-estate bearing the fact that there vast amounts of virgin land that is still cheap. After a year, the profit from savings in a very high interest paying bank here will not much-up with that when i buy real estate and hoad as its value rises every day. Besides, most times i fix-up my money in the bank, its always under my control,i can get it any time i want, it just makes me too indisciplined.
And actually most times i run to buy property that becomes a liability to me...urgh! But i always learn from such experiences.

 

[lynsey2]

hmmmm all very good food for thought!

My intention (after a good investigation) is to remortgauge my flat in Edinburgh (10 mins away from center) and with the equity buy someplace else preferibly outright.

so then i will have a 100% mortguage on my flat in edinburgh but no mortguage in the other property.

I will then let both of the properties out.

After running this for 6months to 1 year (and not falling flat on my face) i would like to buy another property based on the property i own outright (so i'll borrow money secured on the property that i dont owe any money on)

and rent that out OR do it up and sell it off and pay off some of the mortguage from my flat in edinburgh OR put the money from selling it towards another property outright again if possible?

I'm going to try and do some extensive reasearch first so if you guys want i'll keep you posted!

feel free to keep putting in your 2 cence please, i would appreciate any help/advice!

I looked at bulgaria Stuart and i'm not so sure that would be a good investment in the short or long. Proprty is v.cheap but not in great condition or very rentable and there is a lot of property for sale so not looking very saleable either.

please excuse spelling! in a hurry!

 

[ColinEssex]

so then i will have a 100% mortguage on my flat in edinburgh but no mortguage in the other property.

I will then let both of the properties out.

and live where?

Hi Lyns

Col

 

[Rich]

:My intention (after a good investigation) is to remortgauge my flat in Edinburgh (10 mins away from center) and with the equity buy someplace else preferibly outright.

so then i will have a 100% mortguage on my flat in edinburgh but no mortguage in the other property.

I will then let both of the properties out.

Just be careful that you don't stretch yourself, you might also find that a lot of lenders won't accept rented property as security against a loan.

 

[KenHigg]

hmmmm all very good food for thought!

My intention (after a good investigation) is to remortgauge my flat in Edinburgh (10 mins away from center) and with the equity buy someplace else preferibly outright.

so then i will have a 100% mortguage on my flat in edinburgh but no mortguage in the other property.

I will then let both of the properties out.

After running this for 6months to 1 year (and not falling flat on my face) i would like to buy another property based on the property i own outright (so i'll borrow money secured on the property that i dont owe any money on)

and rent that out OR do it up and sell it off and pay off some of the mortguage from my flat in edinburgh OR put the money from selling it towards another property outright again if possible?

I'm going to try and do some extensive reasearch first so if you guys want i'll keep you posted!

feel free to keep putting in your 2 cence please, i would appreciate any help/advice!

I looked at bulgaria Stuart and i'm not so sure that would be a good investment in the short or long. Proprty is v.cheap but not in great condition or very rentable and there is a lot of property for sale so not looking very saleable either.

please excuse spelling! in a hurry!

You know I can't resist...

a. Have the means to get your hands on some cash for repairs and big ticket items...
b. Budget for taxes, etc
c. Somewhere down the line have a means to make ends meet if the rentals go vacant for an extended period of time.

Otherwise I'd say your plan sounds great. Keep us posted with advice you have to share!