Updating post from Reddit.
Would love to hear experiences from those of you that got on the ladder at the cheap end and whether it was more hassle than it was worth (because I now have enough to buy one of them 🤣 but not sure I should)
I have properties that range in value from £45,000 to £240,000 and the cheaper houses by far give the best returns. Lots of people will advise you not to become a landlord and lots have sold up and left the market.
I do honestly believe in running in the opposite direction! Less landlords have so far equalled higher rents and better returns.
parasitic cunt
Where are you getting these 50k properties let me buy up the road. Â
From London where it starts at 650k for a basic 3 bed.
Do you need a mortgage? its a pain getting a mortgage on those type of properties above a shop.
Yea I'd heard that it was difficult to get mortgages on those. No this would be cash, sold all my crypto at the weekend and not sure yet what to do with it 🙈
What kind of returns are you expecting? Can you show your numbers on how you've reached your figures?
That'll automatically tell you if it is worth it vs something like sticking money in a Stocks & Shares index linked ISA.
> flats above a shop
Flats above shop's in 'good areas' are hard to get a mortgage on, in 'bad areas' even more so and if they are 'cheap' then harder again.
> Is it worth buying
The returns can be good on the cheaper properties, however tenant demand may not be high and you limiting yourself to who'd want to live there.
An important factor to remember also, is anyone wanting to buy the property from you will have a hard time. If you plan to own it for a long-long time that it can be fine but woudnt make sense if your only keeping it for a few years.
Looking purely for ways of making a passive income that is better than a savings account. not looking to make money on the property value per say. I don't need or want to live there, I'm a bit of privileged twat tbh as I live on my family farm rent and mortgage free.
Being a landlord is a (part-time) job, it's not passive income. Even if you use a letting agent you still need to make decisions, pay costs and do paperwork.
Yea I used that term rather loosely here. But it would be the first time since I was 16 I wouldn't have to get up at 6am every day to earn it 😜
Or am I better off just sticking it all in a high interest account of some sort. 🤣
You should have an idea of the rental return for a particular property before making a purchase. Think about outgoings for fees and maintenance. A new boiler costs the same for a flat over a shop as it does in a Victorian conversion in a quiet neighbourhood. If the shop causes lots of bother to the tenant, you'll also have to factor in void periods - flipping a property every year or so can be much more expensive than having a tenant who stays for longer.
Unless it makes high returns, I'd save myself the hassle and max out my ISA and pension savings first
I’m not sure what it’s called elsewhere in the rest of the UK, but in Scotland we have the Local Housing Allowance. This is the maximum amount that will be paid in Housing Benefit / Universal Credit by each council and depends on the size of the property and how many bedrooms the tenant is entitled to.
For example, a couple with one child will only get the maximum allowance for a 2 bedroom property, which will vary depending on what Local Authority area they are renting in (£109.32 a week in North Ayrshire). You can advertise a higher rent but the tenant would need to make up the difference themselves.
If you are looking at the cheaper end of the market, this gives you an idea of the achievable rent. If you are looking for tenants who are working, then asking for a higher rent is possible.
Lost out on a few of these there was a studio apartment on the market for months for £50k that would easily have rented for £500+. Someone’s bought it now.
Great returns as rent, but very difficult to sell, as quite a few lenders simply won't lend. So you might have to sell on the cheap.