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New investor looking for best area

Hi I am hoping to buy my first house as a buy to let. I want a rundown 2 bed terraced house which I can refit. I am wondering if anyone can help my decide which is the best area for me to buy in. Any help will be greatly appreciated.

Asked on Jun 1 2018, General in Greater Manchester | Report content

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  • Hello, There are many areas you can choose from. As it is a buy to let, you would need to make sure that you have a sufficient yield (calculated by dividing the annual rent by the value of the property). Crucially, you need to make sure the rent you receive will sufficiently cover all your ongoing expenses. Below are the main ones (although not all of them are compulsory): - Mortgage (Capital / Debt Servicing) Costs - Ongoing Repairs / Maintenance / Redecorating - Lettings Management / Agency Fee - Property Management Software Subscription Fees (Arthur, Rentr, NoAgent) - Insurance - Building (Compulsory) - Insurance - Contents (Not Compulsory) - Insurance - Rent Protection (Not Compulsory) - Insurance - Boiler (Not Compulsory) - Insurance - 24/7 Emergency Cover (Not Compulsory) - Annual Gas Certficate (CP12) (Compulsory) - Annual Electrical Testing (in line with NICEIC / NAPIT Guidelines) (Not Compulsory) - Portable Appliance Testing (PAT) Report - Mileage - Smoke and Carbon Monoxide Detector Testing (Not Compulsory but Recommened) - Furniture & Furnishings - Ground Rent (Leasehold / Share of Freehold Properties) - Service Charges (Leasehold / Share of Freehold Properties) - Legal, Accountancy & Tax Advisory Costs - Limited Company Management Cost - Reserve (Liquidity) Fund Note you will also have your acquisition and new tenancy costs as well. There are also other important metrics such as Return on Investment (ROI) to think about. As you're looking for a property that needs refitting, you'll need to make sure you're buying at a sufficient value for all the numbers to stack up. All the best and feel free to post any questions you have as you go along... Ruban

    Answered on Jun 4 2018, Report content

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