Stueyb

This is just a couple of q's regarding buy to let mortgages.

A bit of background history:

My girlfriends relatives have a nice house in an up and coming area (or so it seems. We moved here and hardly a day goes by before properties are sold) Now in the early 90s the relatives had a big windfall and literally walked out the house and never returned (cupboards still full to this day).

Few people have been back and it is overgrown and rat infested. It is however huge. The council are getting pi**ed with this derilict, rat infested house and want it sorting out but they can't be arsed because there is so much work needs doing.

Now I am seriously thinking about attempting to buy it off them at a reasonably reduced price, just so they can be rid.

Now it will need a lot doing to it, I know that.

So the questions

a) Is property price about to plummit ?
b) She who must be obeyed wants me to offer through a third person. Good/Bad idea ?
b) Is there still money to be made if properties are bought today with the sky high values (relatively speaking as I will be paying "less than book".
c) Just after some idea of reasonable returns to be made, taking into account the appreciation of the house.
d) Is it worth getting in "property management" experts to rent it out. What do you get for your money ?

DJFish

After finding out what our pensions are worth, me and the other half are investing to let, I know a lot of people are pulling out and there is mass speculation over what the market is going to do but it depends what you're after.
We're looking for a long term investment, the house we're buying isn't in the nicest area, but it's right next to a university, is a modern, tidy, three bed house with a big seperate lounge so that means 4x students and 4x monthly rent payments for as long as we keep the house. All the furniture is from charity shops, most of the DIY I can do myself and at the end of each term we'll just go in with a bottle of bleach and a big value tub of magnolia emulsion and give the place the once over.
The basic premise of what we're doing is that historically, long term house prices will always rise and there'll always be students looking to rent.
If you're looking for a short term profit, you need to find out exactly how much it will take to renovate the place, how long it will take, times it by two as these things always go over budget, and work out if you can still afford it if there is a price crash in the next six months (which I don't personally think there will be).

Best thing you can do is talk to someone who has done it, that's what we did and that was the only reason we're doing it.

Good Luck

Dave