confusd/ seeking general guidance

[jock_stein]

Hi forum. For almost 2 years now ive been stalling from investing in a buy to let property. Ive read numerous books on property investement during this period and whilst no doubt ive picked up some key information i still feel alot of crucial points to me seem un-answered. Ive pursued advice from anyone i know or that i know of who have invested in buy to let but the people ive managed to contact have failed to answer many of my queries. I also had an appointment with a property lawyer who seemed to do everything to avoid giving me anything that resembled helpfull advice. Im desperatley seeking advice on the following variables to consider. Sorry i know most of the questions are extremely vauge, any attempt at a response will be greatly appreciated.

. When it comes to location how much value is there in targetting specific towns/cities and if so what town/area of the uk is a good current example. what matters more potential area growth or high student/high renting population.

. Just how much value can be gained by renovating flats. Not looking to sell it on for a profit, just wondering how much roughly % wise rent could increace. In theory i have a fair bit of time to commit plus i know a few different tradesmen who would work for cheap

. Wheres the best place to look for mortgage advice

. Surely its best to bid for numerous flats under the asking price untill you find a desperate seller. If this a common tactic just how much % wise lower can you get away with

sorry again for the vaugness in the questions, size of the post , my grammar and my spelling. Ive actually removed a few other questions and bookmarked some other links ive found on this site in an attempt to condense this post.

Cheers

[bandontherun]

No one knows the answers to your questions! You may as well ask the length of a piece of string!!

The economy is in unknown territory, if interest rates were for some reason to go squirting up prices would probably fall. Furthermore, I am sorry to say it looks as if H M Government's economic policies in particular that of reducing state expenditure by one third across the Board is too drastic and I do not think we have yet felt the bottom of the recession, in which case you will have a better buying opportunity in due course than that currently presenting. If you are going to go into this field of enterprise you need a cushion so that if your tenants fail to pay (and quite possibly trash your property) you can still pay the mortgage and have cash in hand to carry out any requisite repairs before reletting. Therefore I would advise to continue to accrue cash if you possibly can so that you don't go into this in an under-capitalised fashion.

I hope my analysis of the economy is wrong!

[Ricco E]

I'm no expert by any means. Even an expert can't accurately predict what will happen in the future. However, you can look at the current situation and see areas that are likely to change.

Culturally we are a nation of property owners. Currently this is changing, due to the banking crisis and understandable hesitance from lenders to take any risks.

Will the property owning culture change, or is this just a short term thing, a blip? I believe the latter. People still want to own their own houses and in time, I think they will. Lenders' memories will fade, finance will slowly but surely be more readily available. So, demand will begin to increase, pushing up prices. When might this happen? who knows, a couple of years at least.

Remember though, increased demand to buy will result in decreased demand to rent. So, rental prices may fall; buy to let may change (again) to a business inspired by rising capital values, rather than high yields.

Other factors to consider: the population is continually increasing, new build is not keeping up with this.

Houses are more affordable now than they have been for many years. It's the lack of finance that's holding things back. And of course, general uncertainty about the economy.

I think it's a good time to invest, particularly in areas where first time buyers traditionally buy. I could be wrong of course, nothing is certain in life.

[Gordon999]

1. Best place for buying a BTL rental property is in London area or nearby towns within 1 hours daily commute to work. So choose a good residential area with good rental demand, near to a railway station and a property you can afford. Buying property is all about Location, location,Location and probably estate agents can advise you the best locations.

2. A property lawyer should be expert on conveyancing and mortgage procedures etc but may not be the best advisor for choosing the property location.

3. A mortgage broker should be the expert on finding the best BTL mortgage product on offer in the market.

[Claymore]

My advice is similar - location is key - train stations are a very good plus, but so are very good state schools.

I think now is a good time to buy whilst prices are low but I would still look to buy at below market value - ie at auction or a repossession through estate agent. Do a little bit of work - maybe new bathroom/kitchen and a lick of paint and you will have a very nice rental property. If the market drops a little further, you are unlikely to lose out as you bought below market value.

PS - if you can, avoid leaseholds - extra costs, ground rent, maintenance fees - decreasing value of the lease etc.....