On 06/08/2012 09:26, TheScullster wrote:
Hi all

From posts to the group in the past, it is clear that a number of posters
own property for rental.

Is the market saturated after all the buy-to-let hype of recent years?
Is it a worthwhile investment if starting now(ish).

I am likely to be in a position to take on a property (finances permitting)
this year and wonder if this would be a good move in the current climate.

The property is 3 bed semi in decent area - I am guessing at purchase price
of around £150k and rental £500 pcm possibly more.

Only very tentative interest ATM - not sure I could live with the hassle!

If my figures are right on the rental income, what costs should I expect to
pay out of the £6000 pa income?


Thanks

Phil



I don't know exactly what the overheads would be - but presumably
there'll be property insurance and maintenance, plus agent's fees if
letting through an agency. And you'll need to pay for certificates of
gas and electricity safety, etc. etc.

If you've already got £150k with which to buy it, the £6k of income
represents a return of only 4% even if you keep the lot (which you
won't). You should be able to get at least that by investing it in a 3
or 5 year bond.

If you need to borrow the money, you'll be paying more in mortgage
interest than you're getting in rental - and will have to rely on the
property appreciating in value over time to get any return at all.
--
Cheers,
Roger
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