Getting into buy to let property business

salami1212

salami1212

salami1212

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3 Jul 2005
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I have been doing some research in the past few weeks relating to buying to let properties. It seems to be lucrative if marketed and planned correctly. As someone with no prior experience involved im wondering what would be the best course of action to take to make it a reality?

Who would be best to speak to regarding mortgages, legislation etc. Banks?

Thanks
 
Being only 17 I don't have the money to do this, but when I'm working I would like to Buy a big House with a good few bedrooms and let it out for student renting, it looks like the best yield :)

But the Largest Investment haha. :(

Kieran.
 
Dr House said:
Have you got 25% deposit to put down?

If not don't bother anymore.
Click to expand...

As said, you will need quite a bit of money as you need a good deposit these days and even then the rates aren't amazing. It's doable just not as easy as it was.
 
A mortgage broker would be the best people to talk to. You will need a sizeable deposit and often the mortgage length is shorter, therefore higher monthly repayments. While you still need to prove you can afford the repayments the most important thing is to prove that the property can make a profit, usually a minimum percentage above the mortgage amount.
 
Meh,

Buy to let property owners are economic parasites (when done deliberately as opposed to a result of circumstance).
 
Dr House said:
Have you got 25% deposit to put down?

If not don't bother anymore.
Click to expand...

Not true what so ever. There are companies dedicated to selling houses at below market value for the purpose of buy to let mortgages as an investment. Some of them ask for 5% or less. I've seen some available with 3-5k down payment.

There are also companies that will temporarily put up any required "deposit money" for the purpose of achieving a mortgage (for a rather large fee ~1k or more)

Your statement is 100% wrong.

Thanks
 
Illusion said:
Not true what so ever. There are companies dedicated to selling houses at below market value for the purpose of buy to let mortgages as an investment. Some of them ask for 5% or less. I've seen some available with 3-5k down payment.

There are also companies that will temporarily put up any required "deposit money" for the purpose of achieving a mortgage (for a rather large fee ~1k or more)

Your statement is 100% wrong.

Thanks
Click to expand...

I would actually question your statement.Where is your evidence to back up that information?

You can purchase your property for between 5-10% deposit minimum. If it's your second purchase, and evidently likely for buy to let purpose, you WILL be required to place a 25% deposit. I currently don't know of any lender offering 10% or less for a buy to let, let alone 5% that's ludicrous for invesment basis.
 
elmarko1234 said:
Meh,

Buy to let property owners are economic parasites (when done deliberately as opposed to a result of circumstance).
Click to expand...

most universities don't have sufficient accommodation to provide to all students beyond first year - students tend to get private sector accommodation in the 2nd/3rd year etc...

in fact there are any number of people who might have a need for rented accommodation - buy to let landlords are providing that service by taking on risk themselves with the expectation of making a profit
 
Illusion said:
Not true what so ever. There are companies dedicated to selling houses at below market value for the purpose of buy to let mortgages as an investment. Some of them ask for 5% or less. I've seen some available with 3-5k down payment.

There are also companies that will temporarily put up any required "deposit money" for the purpose of achieving a mortgage (for a rather large fee ~1k or more)

Your statement is 100% wrong.

Thanks
Click to expand...

Really, why would anyone sell anything under maket value? But I would like to see some links as at 5k down if being sold under market value I would happily take 10 or 20.

With regards to the companies putting up the temporary despot, how would one go about paying home back after you have got the mortgage from the bank for for only 75% of the market value?

These are the sorts of LTV the normal lenders are giving.
http://www.moneysupermarket.com/mortgages/buy-to-let/


elmarko1234 said:
Meh,

Buy to let property owners are economic parasites (when done deliberately as opposed to a result of circumstance).
Click to expand...

Really, so say I am going to live in an area for one year, where do you expect me to live? a hotel? buy a house and sell it one year later? on the streets?

Such a stupid thing to say. BTL land lords provide a much needed service to most people at some point in their lives.

Do you own your own home?
 
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elmarko1234 said:
Meh,

Buy to let property owners are economic parasites (when done deliberately as opposed to a result of circumstance).
Click to expand...

Duke said:
Completely agree.
Click to expand...

LabR@t said:
yes part of the social problem, personally anyone with multiple homes needs to be taxed into oblivion as far as I am concerned.
Click to expand...

Buy to let is a business for a lot of people the same as any other. Do you dislike everybody with business acumen? Property is a commodity the same as any other.
 
Limited or not, it is a commodity around which many people run their business'. What problem people have with this i do not understand?
 
Jez said:
Limited or not, it is a commodity around which many people run their business'. What problem people have with this i do not understand?
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The problem is property price have gone up so people are unhappy they someone else that took the risk is making money.

It could have gone the other way. Price fell about 30% in Prague and there are a lot of people that bought flats to rent out sitting on huge losses. They took a risk and it did not work out but that is the how the game works.

The uk is full of jealous people:rolleyes:
 
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