Buy to Let UK Wales and North of England

B

beta2

Registered User
Messages
11
Hi All

I've been a long time bear on the Irish property Market, I've decided that I'm not going to buy here in the next two years.

Currently I have money sitting in bank accounts / investment accounts either making feck all or even slightly loosing money.

Over the weekend I was looking at the buy-to-let scene in Wales and Northern England, by my calculations I can get yields of between 11 - 16 % in this market.

Beermat maths : purchase price £47000 + fees £3000, total cost to buy £50000, then with a typical rent £550 - 10% management company fee = £495 rent left for me. Assuming rent at 11 out of 12 months = £5445 or 11%

I'm erring on the side of caution interms of rent, its possible to achieve another £50 a month in rent plus keep in occupied by a longer term rental of 12 months a year giving me a yield of 13%

The house itself would be relatively modern so no major maintenance bills.

I know the UK housing market is in a similar state to ours, but at the price region I'm looking at and the weakness of Sterling I don't think I'd be affected to adversely by market conditions.

This would be the first property that I have bought, so would I loose my first time buyer status in Ireland?

So basically What I'm looking for is someone to tell me I'm mad and its a bad idea.

Thanks

B2
 
Re: Buy to Let UK

Over the weekend I was looking at the buy-to-let scene in Wales and Northern England, by my calculations I can get yields of between 11 - 16 % in this market.
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This sounds like you've been at one of those "seminars" or bought one of those books on Buy to Let in Uk. Beware of the remortgage "based on yield" also.

I'm erring on the side of caution interms of rent, its possible to achieve another £50 a month in rent plus keep in occupied by a longer term rental of 12 months a year giving me a yield of 13%
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Buy-to-let in the Uk, particularly in midlands and north is a nuclear zone. Even the established landlords are fighting against bankruptcy. Given the state of the market - over inflated prices, over supply, few tenants (as few new jobs in area), I would avoid UK buy-to-let like the plague.

Friend of mine has got burnt badly in midlands recently - 3 units, all vacant for more than 6 months - and he was working full time in the business, so though he had an advantage over the amateur investors. He used to work for one of the big commerical landlords in the area (100s of properties) and has been laid off along with a load of other staff as they are in severe financial difficulties.
 
Re: Buy to Let UK

HiB2

Yes you would lose your FTB status if you buy in the UK, or anywhere else for that matter.

Betsy
 
Re: Buy to Let UK

Presumably you are concerned about stamp duty and losing your FTB status...

If you were to buy a property over here and the house was

(1) Under 125 sq. m
(2) You are a owner occupier

then you would not be hit for stamp duty even though you have a house in the UK
 
Re: Buy to Let UK

You also don't lose your "FTB" status with regard to owner occpier mortgage interest relief.
 
Re: Buy to Let UK


Would the house you buy here have to be new?
 
Re: Buy to Let UK

@LDFerguson - correct it has to be a new house/apartment. It can not have been previously occupied
 
Re: Buy to Let UK

Hi Guys

Thanks for the input, its been very useful. I supposed my biggest fear is that the place could sit empty for months on end.

Cheers
B2
 
Re: Buy to Let UK

beta2 said:
Hi Guys

Thanks for the input, its been very useful. I supposed my biggest fear is that the place could sit empty for months on end.

Cheers
B2
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To give yourself an idea of the rentral market you should put in some bigus ads in the equivalent of daft or whatever newspaper you would use to advertise and see what kind of response you get.
 
Re: Buy to Let UK

Are you sure about this FTB? This sounds too good to be true

 
Re: Buy to Let UK


Also re: these comments and I am being serious here prices in UK are much more reasonable as someone who has looked at lots of property prices there (and spend a lot of time there).

Also re: new jobs it seems a lot safer than here at the mo as everyone here I meet from bank employees I know (of domestic and foreign banks) jobs are being lost rapidly and potentially more or otherwise outsourced to India and various other up and coming economies.

Also another point re: UK and jobs, its much easier to relocate/change job in UK as their transport system is a century ahead of ours particularly (particularly on the roads) traffic moves soooo much quicker than Ireland's. To illustrate this you could basically commute from Crewe in the north to Liverpool, Manchester, Birmingham and even London nearly (a journey time similar to many commuters in Ireland who drive from places like Roscommon, Westmeath, Offaly and Kilkenny to Dublin everyday.

Q
 
Re: Buy to Let UK

im a buy to let landlord there for the last 6 yrs. You are dead right... with the yields there its a great time to buy for positive income! Yes, prices will fall more... but I for one am picking up as much of the good stuff (at 10%+ yield) as I can!

With regard to northern england being a "nuclear zone"... that in my mind is rubbish.

I ALWAYS recommend buying for a return on a project (as in a build)... which i wouldnt touch now OR for passive income... which has never been better in the last decade!

Buy for capital gain always has and always will be a mugs game. A slow steady approach to passive yield is the way to go!

Rents are also going up through the roof and i've never had as little voids. For me, since I started this is the first time (apart from expensive) the market has actually turned in MY FAVOUR! Its a VERY VERY exciting time to be a yield investor!

I've over 30 places yielding between 200 and 400 each sterling per month! I can honestly say unless i am giving ridiculous prices per unit i will NEVER sell! WHy would i... it took a while to build, but its the easiest 'salary' i've every received!

Its also recession proof... as i said, yes, the prices are going down but that IS FANTASTIC when you are a income investor as it means higher yields. When the market was going well, I had more voids as all first time investors were buying... now, 2 flats/apt out of over 30 are free only! TOuch wood, fingers crossed, etc etc.... but its never been such a good time to be an income investor!!

I wish ye all well. THats it for another 6 mts for me
 
Re: Buy to Let UK

I have just recently completed puchase of 2 properties in UK. One in Liverpool returning 3% on full investment and one in sheffield which should return 4%. I paid deposits and signed contracts about 2 years ago and have had many douths since. Sterling mortgage are harder to get now and I wanted 90-95% finance but ended up with only 75%.

You have to look at these as long term investments but I think if I was to invest again in propety it would be better to look here.
 
Re: Buy to Let UK

The market in the UK, especially thge areas you mention are in a freefall at the moment. Plenty of tenants but has the possibility of been a real headache if you are not careful. It does seem like a great idea but believe me can be a real nightmare and a very costly one if you do nit know your location and market prices correctly.
 
Re: Buy to Let UK

B2,

Where on earth are you finding a property for £47,000 that rents for £550 per month !!!!!!.
 
Re: Buy to Let UK

BigRog said:
B2,

Where on earth are you finding a property for £47,000 that rents for £550 per month !!!!!!.
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was thinking that myself - the only places I could think of were Rhyl in North Wales or Burnley - but you wouldnt get that rent
 
Ditto here, can you say what areas you are looking - Evolu, its great you have done well, but where are you seeing the opportunities now?
 
Just back from looking in Burnley. Lots of boarded up properties, no access, going to auction with a guide of £35K. Saw one possible BTL, buyer asking £50K (no chance !) needed @ £3k spending on it, so considered offering £40k - prospective tenant waiting at £375 per month. Too tight a margin for me. Came out and found two scrotes trying to break in to my car !. Estate agents full of similar properties & repos. Might have another look in the winter.
 
Without my being a smart ass, does the experiences you had with your car not tell you what kind of areas you are looking at !!
 
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