I'm in a predicament at the moment and I have roughly £25,000 in savings. I'm potentially looking at getting into the BTL market but I'm concerned about whether, with the new tax implications and nightmare tenants still in abundance, the pitfalls outweigh the benefits these days?
There are numerous properties listed in the area at the moment (NW England) for around the £50,000 mark. There's one in particular that I have my eye on and I'd be going in low hoping to purchase for closer to £40,000, spending maybe £5,000-£8,000 improving the property if required and rentals would be somewhere in the region of £450-£475pcm.
There's also a house of identical size in the next street that's been done to a good standard and it's for sale for £90,000, which opens up the possibility of gutting the house, redoing it and walking away with a profit of around £25,000 for two or three months work (even after capital gains tax and paying the early redemption charge).
What's the best strategy to maximise potential earnings? Buy and rent out long term whilst spending as little as possible initially, or getting in and out fast to make sizeable, quick returns?
There are numerous properties listed in the area at the moment (NW England) for around the £50,000 mark. There's one in particular that I have my eye on and I'd be going in low hoping to purchase for closer to £40,000, spending maybe £5,000-£8,000 improving the property if required and rentals would be somewhere in the region of £450-£475pcm.
There's also a house of identical size in the next street that's been done to a good standard and it's for sale for £90,000, which opens up the possibility of gutting the house, redoing it and walking away with a profit of around £25,000 for two or three months work (even after capital gains tax and paying the early redemption charge).
What's the best strategy to maximise potential earnings? Buy and rent out long term whilst spending as little as possible initially, or getting in and out fast to make sizeable, quick returns?