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Has anyone invested in property before

Discussion in 'BlackHat Lounge' started by freeufcdotinfo, Sep 16, 2011.

  1. freeufcdotinfo

    freeufcdotinfo Power Member

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    Looking to buy a flat or two and was wondering if anyone would has done this - im based in the UK and I have come across some cheap ones - thinking of buy to let.
     
  2. Nookie Monster

    Nookie Monster Senior Member

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    I had some rental units back in the 80's. The least headache way is to have a realty company manage the units for you. The small percentage you pay is well worth the money. They handle all the crap that comes up with tenants.

    HTH
     
  3. Dn100

    Dn100 Regular Member

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    First and foremost, you need to find several properties which meet your criteria, and then ascertain the average monthly rental each should yield. Your financial advisor should then be able to work out whether these are suitable to get a buy to let mortgage for. I've been out of the game for a while, although mortgage companies did used to take the amount of rental income achievable into account prior to giving you an offer.

    The criteria to get a buy to let mortgage used to be 1) You had to be over 18 yrs old, 2) You had to be a UK Resident 3) You had to earn a minimum of £10,000 pa. If these applied, and you found a property with sufficient rental yield, it is very likely you will get the mortgage. Deposit/credit checks pending of course.

    Once you have done that, I would look around for a suitable rental agent - you can save yourself approx 10% + VAT by managing it yourself, but when things go wrong, you'll wish you had an agent! Some agents may also offer some form of rental guarantee, so even if the tenant stops paying, they will keep your rent paid until it is sorted. They may charge extra for this.

    Also, I think HomeLet used to offer something very similar.

    Make sure you have adequate insurances in place on the property, and also get all the safety checks done and signed off prior to renting, such as gas/elec etc.

    If the property is priced right, in a decent area, there is no reason why it shouldn't be let pretty quickly, the UK rental market at the moment is booming compared to residential sales.

    Good luck!
     
  4. freeufcdotinfo

    freeufcdotinfo Power Member

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    Not planning to get mortgage - but the area im looking at is not that good - but some good deals up here in the North East - I can buy for around £30k each and rent for around £400 per month.

    What part do the agents play other than finding tenents as I think I could do this.

    Another question that I have is do you think that buying in not so good areas most would want to go down DSS route or do you think its possible that people would work and still live in poorer area.

    Thanks to all for your help on this one
     
  5. hispdcha

    hispdcha Regular Member

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    Managing a rental can be easy or a pain in the ass. It depends on many factors with the most pain in the ass factor being your tenants. I also would recommend you find a property manager to handle all the bullshit that comes along with the business.

    Here is what you have to deal with when dealing with tenants/rentals:
    Late rent, damage, evictions, complaints, broken shit that needs fixed asap, maintenance, dirty fuckers who never clean, dealing with tenant laws, understanding your local tenant ordinances, contracts, deposits, collecting rents, constant phone calls from tenants at all hours, etc.

    Positives:
    Make some passive income, equity.

    You decide if you want to deal with all that shit. :) Most of that stuff can be handled with awesome tenants so screen wisely, but shit will always come up when dealing with other people. You will always have people who are late on rent, who will break your stuff, and who will cause problems with the neighbors/city and complain. A property manager is a life saver in that aspect and makes it worth the trouble.
     
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