I need to put a chunk of an inheritance out of immediate reach – or I’ll spend it….Thinking about a Buy to Let property :twisted:. I know there’s a risk that many won’t ever speak to me again and I will be killed. However, there’s a need for rental property and as long as I don’t behave like Rachman I reckon it’s ok. It isn’t risk free as many seem to think and here, there’s no guarantee or prospect of a huge rise in value in the short to medium term. Have other STW’ers done it, what are the wrinkles and is it socially acceptable?

We have had buy to let for a decade now, one in Sheffield before, one in Scotland now.
It can make a return, but it is more work than a bank. We have made a return despite the massive downturn.
Currently our flat has made 11% return give or take (before the iffy tenant below), about to drop to a more normal 7% as we are buying our own house again.
I have just remortgaged as the market is not yet strong enough to make back our capital IMO, so we are going to give it another 2 years.
Currently I would get out if I could. We have had a very awful tenant experience, leaving us £3.5k out of pocket, or 18months gross profit. We also are too far away from the property now (we self manage). On top of that, the Scottish letting laws and paperwork are now crazy complex and loaded against a landlord. I am dreading another iffy tenant, who a council would support and prevent from being evicted and could drag out for months and months of unpaid rent – all backed up by a court. I have had enough. The risk is not worth the return anymore.

Depends where you are in the country, and whether you are treating it as a long term investment/pension or looking for short term gain.

Nice reference to Rachman, though. 😉