So I spilt up from the old *ag last year and have mow got my own home with the kids that stay 3 days a week and have a lodger.
Moneys good and it has got me thinking could I buy a second house on a buy to let and rent it out.
I live in the south west to could get a 3 bed semi for £165K.
I this a good option if possible?

When i bought my 2nd house i had a big deposit so it was pretty easy, When the mortgage company did a valuation it was on the value of the property and the rental value only. Strangely my earnings were never queried.

Expect to be flamed by the proletariat on here.

Remember any income will be taxable and may affect child support payments. Voids and bad tenants are expensive.

Only you can do the sums. In your position I’d be clearing my own mortgage asap before rates start creeping up, but if you can afford it, do it

Yes its a good idea but remember buy to let mortgages are far more expensive than standard mortgages and you will need to pay tax on your profit.

If for example your mortgage is £150k then your interest only mortgage payment in the region of £750 a month.

I found that a flat gives a better return on investment than a house (and requires less maintenance). Depends on prices in your area.

Yes, in principal. But as above there are things to consider. Mortgage interest on the rented out property is tax deductible as are repairs against the rent. My understanding is that your divorce settlement should probably be final so if you get rental income the ex cannot claim some of that as well – definitely worth checking. If you buy a property nearby I would suggest you pay only a tennet finders fee to the agent and not monthly ongoing, it’s not rocket science to be on call and have the phone numbers of a few repair men/plumber/electrician. God luck.

Yeh I use a tenant finder for one property that’s close to home and an managing agent for the other that’s 200 miles way. Both flats, not sure I’d touch a house, too much to go wrong.

I’ve been renting out property since ’97 and have had very few issues.

Take out insurance for non paying tenants and eviction costs. It’s very cheap and can save £1000s. Buying somewhere nearby, where you can arrange for tradespeople you know to fix things makes life very easy. Wife has two houses (flat & house) rented out 90 miles away – total PITA when things go wrong, which they do……

How does it work if you want to rent out the house you currently live in, do you need to remortgage to a buy-to-let one? We can get twice as much in rent than we pay on the mortgage and if we can afford to keep it when we buy another place I’d want to rent it out. My wife works for the council and we’d rent out to decent tenants on the council list.

Cheers,
Jamie

You need to speak to your bank, or chance it. Your choice. But if you’re going to rent through the council probably best to keep it all official.

One thing I saw when a tenant that I thought was clever- get a place nearby, find yourself a good cleaner and include a weekly visit by the cleaner in the rent – it is a good way of making sure that the place is well looked after.