Btl As A Business

[yadayada]

How to become a buy-to-let landlord and boost your pension with property

http://blogs.telegraph.co.uk/finance/ianmcowie/100020694/how-to-become-a-buy-to-let-landlord-and-boost-your-pension-with-property/

Not that I'm up for it, but it seems you can get 800 a month for a house off Agincourt Avenue. Most of them seem to be up for sale. Chance of getting one for 80 or 90 thousand? I'd take a punt at 70.

Edited October 17, 2012 by yadayada

[Shotoflight]

NI Executive reviewing support for repair and improvement in the Private Rented Sector

http://www.rics.org/uk/knowledge/news-insight/news/ni-executive-reviewing-support-for-repair-and-improvement-in-the-private-rented-sector/

The Department for Social Development in Northern Ireland is consulting on how support will be provided for improvements in the Private Rented Sector.

At present support for repair and renewal in the private housing sector relies solely on grant aid. The support is provided through a variety of statutory grants designed to remedy particular types of disrepair.

The Minister for Social Development, Nelson McCausland MLA, has put the review in place as he considers that the current system of grants is no longer an effective means of assistance.

The consultation proposes that the current system of grants is deregulated and that support could be provided through:

a grant

a loan

a loan guarantee or indemnity

providing materials or labour or

incurring expenditure in other ways

[Shotoflight]

Landlords face extra costs of £1,500 a year

Buy-to-let investors can be caught out by unexpected costs.

http://www.telegraph.co.uk/finance/personalfinance/investing/9687521/Landlords-face-extra-costs-of-1500-a-year.html

Thousands of landlords hoping to cash in on the buy-to-let boom are being left £1,500 out of pocket after being stung by unexpected costs.

New research reveals that landlords pay £2.1bn in arrears, property vacancies and maintenance charges a year. The average cost per landlord is £1,532, according to estate agency Northwood, with 84pc of landlords receiving less rental income than they expected.

[Shotoflight]

UK - capital depreciation and other variables may upset the figures in NI

Buy-to-let booms as investors seek real returns

Landlords have prospered as tenant numbers rise and mortgage rates fall.

http://www.independent.co.uk/property/house-and-home/property/buytolet-booms-as-investors-seek-real-returns-8581244.html

[Shotoflight]

One in eight pounds lent to landlords

One in every eight pounds of mortgage lending this year has been on buy-to-let, new figures have shown, amid concerns that the Bank of England’s cheap credit scheme is being used to line landlords’ pockets.

http://www.telegraph.co.uk/finance/economics/10046428/One-in-eight-pounds-lent-to-landlords.html

[curiositycat]

Just wondering if any of you have insight into Belfast student rents as i'm getting contradictory information. Seems that some are still renewing / paying 2007/08 levels of rent, whereas i can find examples 20% maybe 25% lower. What is the experience here and word on the street? How much does a 5 bed in Agincourt, or in Stranmillis rent for in reality? And for a 12 month AST, "joint and severally liable".

[BelfastVI]

Not a market I am in but I have heard that the Holyland is not as desirable as it once was. Parents don't want their kids staying there due to the negative TV reporting on the lifestyle/trouble. Also any student that can commute now is. Stranmillis, I believe is still expensive as the student is still competing with the private renter.

[curiositycat]

As for students increasingly commuting, i heard stories about that already too, trains being packed on mornings on way in, students only having classes 3 /4 days a week anyway. However if i was a student able to get even a single room at 175 a month, surely the fuel / public transport ticket costs over a month would come to near that figure! And then no "proper" student life. Wouldn't want to have missed that experience, the fun and the banter for anything myself...

Is it usual that students club together for a proper shared tenancy?

Given the solvency issues, are solvent parents worried about guaranteeing a tenancy /. lease for potentially insolvent families?

What levels of maintenance is common, i imagine that's very high in student lets?

[2buyornot2buy]

As for students increasingly commuting, i heard stories about that already too, trains being packed on mornings on way in, students only having classes 3 /4 days a week anyway. However if i was a student able to get even a single room at 175 a month, surely the fuel / public transport ticket costs over a month would come to near that figure! And then no "proper" student life. Wouldn't want to have missed that experience, the fun and the banter for anything myself...

Is it usual that students club together for a proper shared tenancy?

Given the solvency issues, are solvent parents worried about guaranteeing a tenancy /. lease for potentially insolvent families?

What levels of maintenance is common, i imagine that's very high in student lets?

Seriously head over to a landlord forum, you'll get much better advice on the "business plan" there.

[curiositycat]

Forgive me for thinking that "BTL as a Business" sounds basically like a landlord / investor forum. So what forum do you suggest then for N Ireland landlords?

[2buyornot2buy]

Forgive me for thinking that "BTL as a Business" sounds basically like a landlord / investor forum. So what forum do you suggest then for N Ireland landlords?

The forum is called House Price Crash. "BTL as a business" is a thread.

It sounds like you are asking for actual investment or business advice. I suggest a landlord or investment forum.

Edited May 22, 2013 by 2buyornot2buy

[Shotoflight]

Labour: Force landlords to bring down rents to reduce welfare bill UK

Local authorities should be able to force private landlords to bring down rents to reduce the housing benefit bill, Liam Byrne has said.

http://www.telegraph.co.uk/news/politics/ed-miliband/10102573/Labour-Force-landlords-to-bring-down-rents-to-reduce-welfare-bill.html

[Shotoflight]

It's boom time for buy-to-let, so here's your homework

'Generation rent' is good news for landlords, but don't expect an easy ride, warns Chiara Cavaglieri

http://www.independent.co.uk/property/house-and-home/property/its-boom-time-for-buytolet-so-heres-your-homework-8650582.html

The market is skewed towards landlords at the moment, but this doesn't mean you're in for an easy ride if you're considering the role. Like a business, you need a careful plan and a dedicated budget for all the likely costs you will encounter.

Once the property is valued, banks usually insist that the rental income is 125 per cent of an interest-only mortgage repayment. As an example, Abbey/Santander offers a two-year fixed rate at 2.59 per cent to 60 per cent LTV with a 2.50 per cent fee and its rental calculation uses a rate of 6 per cent, so to borrow £150,000 the property would need to generate at least £938 per month.

[Shotoflight]

Labour to examine housing benefit and retirement age in event of election win

Ed Balls clarifies Labour's plan for curbing welfare spending via three-year cap in event of a general election victory in 2015

http://www.guardian.co.uk/politics/2013/jun/09/labour-ed-balls-curb-welfare-spending

Labour will target housing benefit and will examine the case for further rises in the retirement age as the main ways of curbing welfare spending through a three-year cap if it wins a general election victory in 2015.

Party sources also said a future Labour government would try and shift the emphasis of housing spending from housing benefit to building more homes. In his speech Miliband said that for every £100 spent on housing thirty years ago, £80 was invested in building and £20 on housing benefit. Today, £5 of every £100 is spent on house building while £95 goes on housing benefit.

[BelfastVI]

Labour to examine housing benefit and retirement age in event of election win

Ed Balls clarifies Labour's plan for curbing welfare spending via three-year cap in event of a general election victory in 2015

http://www.guardian.co.uk/politics/2013/jun/09/labour-ed-balls-curb-welfare-spending

Labour will target housing benefit and will examine the case for further rises in the retirement age as the main ways of curbing welfare spending through a three-year cap if it wins a general election victory in 2015.

Party sources also said a future Labour government would try and shift the emphasis of housing spending from housing benefit to building more homes. In his speech Miliband said that for every £100 spent on housing thirty years ago, £80 was invested in building and £20 on housing benefit. Today, £5 of every £100 is spent on house building while £95 goes on housing benefit.

100% correct. They need to build more houses instead of relying on the private sector to take the overflow. They should also be doing everything in their power to stop people falling into the welfare housing system in the first place.

[getdoon_weebobby]

I would imagine as prices are falling and falling and with interest rates at lows people looking at doing BTL is bound to increase.

if you can pick something up for 50 or 60k that rents for 500 or 600 £ this is bound to be an attractive proposition for more and more people

But are anyone lending to buy to let in Northern Ireland?

http://www.ulsterbank.co.uk/documents/ni/Buy_To_Let_Guide.pdf (ulster bank up to 70% )

It is an interesting area that you need to keep a keen eye on as currently the market I would guess is FTBs and cash buyers but should prices go so low that banks feel more comfortable lending then BTl could increase.

[BelfastVI]

I would imagine as prices are falling and falling and with interest rates at lows people looking at doing BTL is bound to increase.

if you can pick something up for 50 or 60k that rents for 500 or 600 £ this is bound to be an attractive proposition for more and more people

But are anyone lending to buy to let in Northern Ireland?

http://www.ulsterbank.co.uk/documents/ni/Buy_To_Let_Guide.pdf (ulster bank up to 70% )

It is an interesting area that you need to keep a keen eye on as currently the market I would guess is FTBs and cash buyers but should prices go so low that banks feel more comfortable lending then BTl could increase.

At the moment is is cash buyers only who are picking up the B2L at £40k at the auctions. You can get a loan in the UK but very difficult in NI. it will take a year of growth for that to change. Nobody buying our houses are buying to rent.

[2buyornot2buy]

At the moment is is cash buyers only who are picking up the B2L at £40k at the auctions. You can get a loan in the UK but very difficult in NI. it will take a year of growth for that to change. Nobody buying our houses are buying to rent.

Not true. BTL loans are easy to get. Easier than resi anyway provided the rent is 125% of the interest only mortgage payment at 7% interest.

[BelfastVI]

Not true. BTL loans are easy to get. Easier than resi anyway provided the rent is 125% of the interest only mortgage payment at 7% interest.

not what my bank is telling me.

I just used the simple Google Mortgage tool My link

Entered Buy to Let, value £100k, loan £80k and searched under the the following available regions

England 39 products available

Wales 39 products available

Scotland 32 products available

N Ireland 0 products available.

[2buyornot2buy]

Try 75k

Danske, ulster, BOI, Santander, leeds and halifax all offer products in NI

Edited August 20, 2013 by 2buyornot2buy

[Shotoflight]

Try 75k

Danske, ulster, BOI, Santander, leeds and halifax all offer products in NI

& HSBC

[2buyornot2buy]

& HSBC

And most broker only outfits.

the appetite just isn't there.

only works with capital increases. A poor way to store or create capital in my opinion. Parasitic at best.

[Shotoflight]

Mark Dampier: Buy-to-let may be no shelter for your cash

http://www.independent.co.uk/money/spend-save/mark-dampier-buytolet-may-be-no-shelter-for-your-cash-8782929.html

I am a natural cynic of politicians who are famous for their policies designed to please the electorate in the run-up to a general election. The funding programmes the government has designed are more useful to help that feelgood factor. There will be a price to pay, in my view, but this won't come until after the election. Unless you are a professional buy-to-let investor be careful. Buying the flat or house next door is not true buy-to-let. Do your sums carefully and I think you will find you want a yield well north of 5.5 per cent to make it really worthwhile.

[little fish]

Even less of an incentive in NI now as the Tenant Deposit Scheme has started - no longer will landlords be able to just help themselves willy nilly to deposit money (an extra month's rent) just because they can. Any dispute now will be independently and fairly dealt with - well that's the plan - early days yet.

[little fish]

And most broker only outfits.

the appetite just isn't there.

only works with capital increases. A poor way to store or create capital in my opinion. Parasitic at best.

While I agree with you in the main - I have had several unlikely sorts question me about BTL recently - some are just so annoyed at the lack of return from savings that they see BTL as the last resort. I do think BTL may take off again, certainly not to the dizzy heights of pre 2008 but an increase which will be noticeable.

My advice - seeing as I no longer give advice is Buy Tulips because they are lovely and you just never know.....