tim..... wrote:

"TheScullster" wrote in message
...

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?


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My own experience of doing this when returns on a "normal" property were
12% is that, without the capital gain, it was more hassle than it was
worth. Tenants not paying their rent, moving out before the end of term
[1], leaving the place as a tip [1], making request for "unreasonable"
improvements. Yes, you can employ an agent, but that will cost you 15%
and they can't insulate you from every problem and sometimes create
problems of their own.

IME as a tenant, Agents do absolutely **** all beyond handing the money and
running a credit check. cf when the boiler dies, middle of winter, baby in
the house and landlord on holiday:

Agent: "Nothing we can do..."

Me: "Hires local CORGI firm to fix it"

Landlord, later on return: "Thanks for finding a reasonable company to fix
it - here's your money back".

Luckily for me, the landlord was a decent bloke - but it taught me that teh
Agent was basicallya bottom feeding parasite.

At 4% return, I wouldn't touch it again with someone else's barge pole.

Though, even in the current market, there are properties/locations that
return 12%.

Are you expecting a capital gain here? If you are, would you consider
investing in a property and keeping it empty was a good investment?

YMMV

tim

[1] Having "spent" the deposit on the final month's rent that they didn't
pay.
--
Tim Watts