Buy to Let

Found 6th Aug 2017
Hi all.

I'm about to take the plunge into the buy to let world and after some tips and your stories.

I have been told its best to setup a investment trust through an Isa to avoid the extra income tax as the rules on offset mortgage tax relief is ending, anyone have any info on this?.

The propertys in Northamptonshire are looking to achive 5.5% yield which seams OK for me at present. Is this enough?.

Did you get a repayment or interest only mortgage, I am looking at repayment as I am looking ahead for retirement is this wise in your opinion?.

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Its tough to get an income off of one property esp. if it has a mortgage as well. Which is why you will want to invest somewhere where the values will rise a lot.

Hence some of the regeneration areas of London being so popular as you can buy "off plan" to save for a start and an instant boost.

Barking Riverside, Canning Town, along the Royal Docks all offer the btl investors good opportunities for medium term, high equity growth.

If you can afford to buy used then the dizzy price increases in places like Plaistow are the place to go. Former HMO's are being gobbled up daily and being turned back in desirable three story town houses.

All this is driven by the expansion of business east of current docklands project down past City airport.
Edited by: "groenleader" 6th Aug 2017
Original Poster

I have a 3 property investment plan, Monthly income isn't the biggest issue for me hence why I am OK with the 5.5% yield.

I am an ex Londoner but not looking to invest there as I belive Northamptonshire is growing and will be the safest bet for me.
My starting capital is £150k with a £15k savings backup plan.
Make sure you do your due diligence with prospective tenants, otherwise your investment might become a nightmare, trust no one
Have a look at the A very useful site for landlords old and new.
5.5% is pretty good and way better than anything you'd get in London if buying now. As far as tax is concerned you will eventually be taxed on all income irrespective of mortgage and don't forget the higher stamp duty. Not sure about the investment trust ISA thing - an accountant should be able to advise on that. Type of mortgage depends on how long you intend to keep it and if its long term as you say then a repayment would make sense. Now is a good time to get a long term fix.
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