New member saying hi and couple of qestions

[jonathan2200]

:(hi):
Ok so good morning guys (and gals)
Not only a new member to the site but new to all things landlord.
Right bit about me. 32 years old, work in oil and gas, or more specifically commissioning. so money is good.
I am in the process of buying a repossesion property to let and also looking to buy a second property to let (reason i wanting to do so soon is i currently am working equivalent to pay as you earn so i have pay slips, normally i am through my limited company which i shut down this year, however i am due to finih this job and start a new but it will be working limited, this i think would def stop me with a mortage, due to not having books for new co. and the amount i pay myself etc.)
So, couple of questions if i may...
firstly, my first purchase is due to go public notice v. soon, how many times have you heard of people submitting higher offers at this point?
Secondly do you think i should learn to walk first, ie forget about the second btl for the moment, i have no concerns wiht making mortgage payments, im more thinking if im missing something obvious, as my plan initially is to get these 2, get them to a rentable standard, and use a rental company to source and manage tennant initially, with myself hopefully taking over runningafter a few months. I realise i would need to get building insurance and gas checks etc, but is there any other things i am missing, any help is much appreciated.
i have worked out the net yield on first property and to be honest isnt great (circa 4%), but i am happy with the price i am getting it for (as long as no one comes in with higher offer!!) feel it 20k minimum under RICS valuation.. anyway guys any pointers welcome. i will be online regular to reply.

Thanks
Jonathan

[bandontherun]

I would suggest that getting a full survey rather than a mere valuation for mortgage would be worthwhile

Buy in an area with which you are familiar and which is accessible to you.

To be prudent I would suggest that you use a firm of Chartered Surveyors to be your managing agent. The Royal Institute of Chartered Surveyors has stringent rules covering all aspects of member firms' conduct and accounting standards.

There are perfectly good letting firms whose Principals are unqualified but you are less likely to have a problem with a professionally regulated firm whose partners have spent years and years studying and who carry all manner of professional indemnity insurance. It sounds like saving a few quid on fees is less important to you than being assured everything is being done correctly. There can be no financial return on aggro!

[jonathan2200]

hi thanks for the quick reply. Yes thats right, aggro is something no one needs!! im thinking of using a local estate agents who are part of the ARLA and have won awards in the letting management area. As for the area, my first btl which sale is going through is local to me and in a estate i spent a few years in my youth, its quite a nice area, with 99% of homes being privately owned. as for the second house im looking for more of a street house and in not so good are, again within my town. This would give me a higher yield but in my mind come with more risks of bad tennants, but because its a risk im willing to take i think!!

[Mrs Mug]

I realise i would need to get building insurance and gas checks etc, but is there any other things i am missing, any help is much appreciated.

The link below is a good source of advice.

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

[jonathan2200]

Hi thanks for link, i imagine the letting agent will take car of a lot of the legalities, however i agree it is good to have a basic (atleast ) understanding of the associated laws

[jonathan2200]

just had a quick quote for insurance in preperation for all going through succesfully (fingers crossed) came in at just over 100 pounds! thought that was very cheap, for buildings and contents. Getting excited now.

[Brb]

Hi thanks for link, i imagine the letting agent will take car of a lot of the legalities, however i agree it is good to have a basic (atleast ) understanding of the associated laws

I hope you are aware that LAs do not require any qualifications to set up business and could know less about housing laws than you currently do! all with the LL being legally responsible for their LAs actions/neglect.

[mariner]

Invest ~£80 for membership of NLA/RLA. Useful training resource and discounts for members.

[Snorkerz]

just had a quick quote for insurance in preperation for all going through succesfully (fingers crossed) came in at just over 100 pounds! thought that was very cheap, for buildings and contents. Getting excited now.I agree, that is very cheap. Did you notify the insurer that it was a rental (ie non-residential) policy you were looking for? If the property is currently vacant, did you tell them? If the property has tenants on benefits, did you tell them that?

[jonathan2200]

hi the insurance quote was through "simple landlords insurance"
I just did it as a sample quote, as my purchase is not yet complete, but i made a few assumptions, ie rented to proffessional, or working family, building cover at 120k, and just the default options.
As for me joing lra it is something im considering, just want to get house purchase complete and tenanted first, looking to get all work carried out and tennant in by end jan. then i will be looking at joining, im now thinking of using estate agents to find tennant and let them do the checks etc, and me to manage, when my work takes me out of the uk towards the end of next year, i may switch to a full amanagement service, will have to see how things go first. Is all very exciting!

[jonathan2200]

I hope you are aware that LAs do not require any qualifications to set up business and could know less about housing laws than you currently do! all with the LL being legally responsible for their LAs actions/neglect.
yes i am aware of that fact, however the ones im thiking of using are part of governing body and have won awards as stated, but yeh i am mindful of who i chose, i do tend to do a bit of due diligence before making any decisions with things.