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Hi, Im looking to buy a property to rent out & looking at the options for financing some of the amount, before I go seeking so called professional advice,
I wondered if any of you guys have any pointers & pitfalls to avoid such as types of mortgage repayment / versus interest only (which I've always avoided but I know some landlords use)
Any help would be gratefully received
Thank you,
Don't ask in here... they will have you burnt at the stake.
But
Make sure that you don't need the cash, you can afford to lose it and that the house is in good order. A slip in prices and it's all tied up.
Insurance, a good lettings agents, fully photographed inventories, checked tenants, regular inspections, no pets, no smokers (no kids) and make sure you have local trades peoples who can do stuff at the real rate.
Loads of good info here:[url= http://bit.ly/1MpsJ8w ]Property Investing for Cyclists.[/url]
Looking at doing something similar and finance advisor said that you need 25% deposit and the bank will lend the rest on an interest only mortgage. They tend to lend on rental return potential rather than property sale value. His magic number was 192. So monthly rent of £500 x 192, that is what the bank would lend. Round here, north Kent, it sounds right, £120000 property will rent for 500 a month.