On 06/08/2012 11:09, John Williamson wrote:
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?


In a good year, you'd pay 20 - 30% for maintenance and other admin
costs, in a bad year, you might only make £1000 in net rental income due
to voids and "unusual" problems. There's a good chance that a few
tenants will leave owing you rent or cost you money to have evicted,
while trashing the place before they leave out of resentment. Avoid DSS
tenants like the plague.

According to a friend of mine who owns a dozen or so flats, students are
good renters who normally move out every July and back in every
September, giving you a month to decorate in between. Check with your
local Students' Union, who will vet the tenants for you, and will
administer the place for not a lot if you ask them. They can also get
bad tenants into trouble with the college as an incentive for good
behaviour. Then budget for a complete repaint and minor renovations
every year when you work out the rent you need to make it pay. The place
*will* suffer from condensation while they're in.


Done it and couldnt sell quick enough, ok not the best area but the
hassle was draining, on the rental aspect I doubt if I made a profit
over 2 years between one thing and another. Sold house at profit and
invest abroad at 10% plus can make a bit more by playing the sterling
market. Personally I wouldnt touch property at the moment.