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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: mohawkbrah on June 22, 2015, 01:11:11 PM

Title: any uk landlords here?
Post by: mohawkbrah on June 22, 2015, 01:11:11 PM
im young and an aspiring to buy my first property some time in the next 5 years. but a lot of property's in england are very expensive. any tips on where to look for cheaper property's or how to haggle the price down a bit?

or... anything?

pretty please

Title: Re: any uk landlords here?
Post by: former player on June 23, 2015, 04:45:41 AM
1.  Auctions.  But you need to know what you are doing, at least a bit - make sure you thoroughly understand the legal pack, have a structural survey and are familiar with what is happening in the neighbourhood before you bid.  For a beginner's look at this, try Homes Under the Hammer on BBC iPlayer.

2.  Look around for neglected/vacant properties and plots in your area, research who they belong to (Land Registry, neighbours, electoral register, etc) and make an offer.

3.  If property in your immediate neighbourhood is too expensive, there is probably somewhere else in the country which is cheaper and where you can buy a rental/potential retirement home while you live, work and rent in a more expensive area.  But do be aware that long-distance property management can be a pain, and also see above advice about thoroughly knowing the area in which you are buying.

If you want to make money in property, you can 1) Self-build, 2) Renovate/extend to add value, or 3) buy and hold in an appreciating market, while either living in the property or renting out.   On the financial side, you can use the time before you buy to put together a 20% deposit and to make sure that you have good credit scores and can demonstrate that you have income to spare for repayments on a mortgage - lenders will check your usual expenses against income.

Title: Re: any uk landlords here?
Post by: Squirrel away on June 23, 2015, 05:49:10 AM
I'm not a landlord but have you asked for advice on the Money Saving Expert forum? It seems like there are a lot of landlords on there that could give you advice.

I think you can get better value if you know how to do DIY yourself so you don't have to pay someone else to do the work for you.

I think you have to work out where you would get the best yield as it varies from area to area. I live in London so I have no idea what the prices are like in Herefordshire.:)
Title: Re: any uk landlords here?
Post by: daverobev on June 23, 2015, 09:59:05 AM
It's a numbers game. I would suggest using your ISA room before even thinking about rentals unless you can get an awesome deal.

Don't fall into the 'houses will make me rich I must buy!' trap. They can, mostly because you can borrow to invest. But they can also cost you a lot (an index fund may drop in value, but it won't sue you, won't suffer from nasty tenants, or be flooded actually taking money from you).

I'm not saying don't do it, but make sure you have other assets and a good contingency fund first.
Title: Re: any uk landlords here?
Post by: mohawkbrah on June 25, 2015, 01:53:50 AM
thanks for the advice guys, i agree i'll probably stick to my ISA for now. at least until i can max it out every year, but then i'll probably invest in a SIPP (retirement acc) after that then finally real estate by the looks of it.