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Hi all Would love views on my plan below. Im fairly new to commercial property, apart from having been an accidental AirBnB landlord over the years and renting out my flat in London with CTL on my residential mortgage whilst working abroad. Welcome thoughts on my plan below. I have found a beautiful 3 bed cottage in the Scottish Highlands, 20 mins drive from a large-ish town in a thriving touristy area; I've had an offer accepted and pondering if this is too financially uncertain. Recognising the Highlands is an unusual place for BTL but its an interesting market as there's a huge shortage of rental properties for local staff and strong demand. My objectives are long term appreciation of the asset and to use the property myself as a second home / Holiday Let after 3 or 4 years of BTL. Maybe keep it as a lovely place for my retirement in 25 years. I cannot Holiday Let immediately as the Scottish Government need to issue a licence which can take some time to get. For now, I want the rent just to pay cover the running expenses amd it be a safe place to invest my savings. I love the area and spent holidays there as a kid, so there's emotion driving this purchase (which makes me a little nervous that Im not being objective enough). The cottage needs some modernising (chimneys re-pointing and lining, kitchen units replaced, new boiler and storage heaters replaced by radiators). A local builder has estimated 10k, so I've made that 16k in the budget. Here are the figures: Rental income: 1000-1200/month, excluding bills. = 12k - 1440k/yr. ---- Upfront costs Price: 195k. Tax and conveyancing: 14k (6% second home stamp duty in Scotland). Repairs to kitchen and heating system: £16k (10k estimate plus 8k contingency). I think £15k of this will be an allowable revenue expense for tax. Total price: 225k My Deposit: 90k ---- Costs Ongoing as BTL Insurance and licencing: 50/month. Call-out fee for agent = 50/month My travel: 300 x 3 per year = £900/yr (75/month) Mortgage: 135k @ c.6% = 640/month Total standard outgoings: 815/month = 9780/yr. ____ Year 1 Gross Income: Rented for only 6 months due to renovations = 6k income. Expenses: 9780 standard outgoings Net income pre tax: -3780 Tax yr 1 Tax deductible expenses : 3636 (ongoing) One off costs for renovations: 15,000 Profit/loss: 6000- 3636 - 15000 = - 12,636. Tax due @40% = none as made loss. Tax yr 2 Income: 12k rental Tax deductible expenses : 3,636 (ongoing) Loss from previous year: - 12,636 Profit: 12,000 - 3636 - 12,636 = -4,272 Tax due @40% = none as loss made. Tax yr 3 Income: 12k rent Tax deductible expenses : 3,636 (ongoing) Loss from previous year: - 4,272 Profit: 12k - 3,636 - 4 272 = + 4,092 Tax due 4,092 x 40% = 1636. *Remortgage off 2 year fix at 6%* Tax yr 3 Income: 12k Tax deductible expenses : 3,636 (ongoing) Profit: = +8,364 Tax due @40% = 3,345. ******* Year 4. Convert to Holiday Let and remortgage. Income: 22k Tax deductible expenses: mortgage, bills, agency fee, etc: 15k Taxable profit: 7k. Less 40% Net profit = 4200. That's the plan. It'll e expensive for the first few years but should become profitable once it is able to be used as a Holiday Let. Plus, I anticipate mortgage rates coming down so when I remortgage in 2 years, I anticipate a rate closer to 4 % than the current 6%. Thanks for comments!

Hi guys, I might be wrong but I think the majority of property Hubs members hail from South of the border. As such I am just trying to reach out to anyone in Scotland as I am aware the process up here is different and would be keen to get to know people who have experienced the process up here. Thanks in advance for reading and I am in no means trying to shun a whole demographic just trying be more area specific 😁

Hi, We are new to property investment but are looking for a strategy to maximise return from our Guesthouse sale/ development. We are in the Centre of Oban, Scotland and are roughly 40%ltv so are agonising whether to convert to HMO, sell as is, or do a flat conversion. If anyone has any suggestions or alternatives, that would be welcome Thanks Hugh

Hi there, I am a Civil Engineer working and living in Edinburgh where I have lived my whole life. I graduated and have been working for a couple of years now whilst saving some money. I have now reached a point where I could buy a property to live in although the preferable areas are quite expensive especially for a first time buyer in Edinburgh. I have looked at other methods of investing but property is a sensible long term plan, seeing as I am only 25. The aim would be to have a property that could be let out whilst I rent somewhere else and save to reinvest. This may also be beneficial as I might move abroad for a year or so in the future. As you can tell I have no experience in property but would like to invest somewhere nearby (to begin with at least). I have been making my way through the pod casts although still have a few more to go but so far they have helped me to gain a better understanding of what is involved and whether or not I should pursue it. As some of my questions get answered others arise but hopefully these will be answered in coming episodes. My current barrier is ‘building a team’ as this is a little daunting with no experience. I have more questions regarding mortgages (85-90% LTV - £140K loan) and options in terms of living in a property and being able to convert that to a BTL (max 75% LTV - £100K loan) but can post any questions in the forum section. My plans for the future... Well as is said in one of the podcasts, dream big so that’s what I’m doing especially as I still have time on my hands. In the short term I hope to start in the coming months otherwise I feel as though I am wasting time doing nothing. If anyone has any words of wisdom or encouragement or general pointers and tips then that would be great. Cheers Mikey

Hello, I just about to compleat over the next few weeks on a BTL flat in Dundee. This is my second BTL, however, it is the first time I have invested in Dundee. I am starting to look into sourcing some local tradesmen to complete a relatively small refurbishment. If anyone has any recommendations for local Plumbers, Electricians, Kitchen fitter or carpenters? It would be very much appreciated. Thank you very much Martyn Taylor

Hi folks, I've had my property let for the past 10 months by an agent but I'm considering self-managing (a number of things including poor comms and errors in paperwork have frustrated me). Does anyone have any advice on pitfalls or things to look out for? The agent found the tenant, did all the necessary checks (they say) and have protected the deposit. How simple should it be to transfer over to me? House is in a ltd company, recently mortgaged on a BTL product. Tenancy is the standard Scottish form (no specified term).

I would like to invest in property and I have £250K to spend. Should I buy two properties or one? I thought two may be better to: * allow an income even if one isn't rented yet or there are problems. * less risk if the property was ruined by bad tenants. *If I buy in two areas I may smooth out any sharp rise or fall in the increase (or decrease) in value of properties in a certain area. I live abroad and will have the property/ies fully managed so I was thinking one property would be better: * to lessen start-up and paperwork fees - I assume they'd double as there's two flats. I intend to buy in Scotland. I'm not sure if there are tax implications with buying two properties instead of one? I have been in touch with a property management company but they were unable to advise me on this matter. Any insights very welcome! Thanks, Charlotte

Hi there I have been told to self isolate for 13 weeks as I have severe asthma. I'm looking for some info on online property courses. Obviously the content on here is great but I'd like to have one single course that covers alot of information for beginners. Ideally with certification. I have seen a few but would just like some advice. I'm in a Scotland so would prefer one that covers Scottish law etc but I understand that may be more difficult to find. Thanks in advance and stay safe

Hi Hubbers First post- happy to be an official Hubber :-) Can anyone recommend any good independant BTL mortgage advisors in Scotland? Thanks Duncan

Hello everyone, This is my first post ever here so sorry if it's not correct in any way. i have signed an tenancy agreement with a tenant and they paid the deposit. Then a day later they said if they can delay the tenancy for a week then move in as they were having issues finding someone to rent their place... Now they don't want to move in a week later after their original move in date.. I have lost money and potential others tenants. Can I keep their deposit ? I have put this in their contract that If the tenant does not move in on the date stated then I will not be returning their deposit. This is in Scotland so I know the law is different in England ( i think) please advise would be greatly appreciated. Thank you

Hi folks, we're currently in the process of buying our second BTL and it's been highlighted by our solicitor that the converted loft (carpeted, plastered and with a roof window but no fixed staircase) does not have the necessary permissions (i.e. Building Control sign off). It wasn't sold as habitable space but we're being advised to have the vendor (an absent executor) get a letter of comfort from the LA; to indemnify us against any future associated costs for remedial work; or to "take a view" (which, in the context is likely to be proceeding at our own risk, renegotiating the price or withdrawing entirely). Anyone got any experience of this or able to offer some wisdom? It's a good house at a decent price, but not so great a deal that we'll proceed at any cost!

Hi folks, I am new to the Forum although have had a keen obsession in all things property related for many years now! I've finally decided to do something about it & am in the early stages of research - listening to the podcasts & reading up on all things relevant. I live in Edinburgh & my initial plan was to refurbish properties & sell on - flipping - the new term I have recently learnt! I had planned to start off in Edinburgh as I know it extremely well, buying at around £150,000, refurbish & then sell on & repeat. I had planned to try & raise the money myself through a combination of equity in already in our home, selling a property we already let in Edinburgh (bought by my husband in the winners curse period 2007 & valued at less than he paid for) & various other sources. However, having listened to the 2 Rob's I am now rethinking my strategy (leverage, inflation, opportunities etc) & feel perhaps I should go down the lettings route initially, starting off with one property (around £150,000) on a BTL & then another one in 6 months time once I've learnt a bit more & hopefully a 3rd after that. Perhaps moving onto flipping after that. I will be focusing on the Edinburgh area but will also consider East Lothian, Fife & Stirling. I'm looking for some advice on the following: Do you property investors out there think I've missed the boat for flipping in/ around Edinburgh area? (I have listened to the intriguing 18 year cycle podcast)! Does anyone know of a resource that summarises all of the key financial considerations I need to factor in for purchasing, letting, selling properties (i.e. stamp duty, estate agency fees, Solicitors fees, management fees, tax charges etc)? I have a lot of these noted already but want to ensure I don't miss any in my calculations & also to help me decide on my strategy. I am keen to set myself up for success - so any other information you think may help me decide/ determine my strategy would be much appreciated! Thanks :-)

Are Lease Options legal/approved of in Scotland? I have read (from an old source) that the Law Society of Scotland do not condone them.

Hi there, I'm looking to make a start in the world of property investment in the Glasgow area. I was originally looking to find a suitable property/seller for a Lease Option Agreement but have heard its quite tricky to do in Scotland? I don't think a Buy-to-Let is the best place to begin so was thinking of buying solely to holiday let or if possible renting to sub-rent as a holiday let if that's a thing? I'm still a student and have around £10,000 to spend so looking for a small deposit investment. I'm also open to any joint venturing/mentoring to help get me started, I wouldn't necessarily be looking for much profit just experience. Any advice would be much appreciated.

Hi guys I will be needing the services of a company to manage a future property in Glasgow. Does anyone have experience with any of the companies there and who I should contact (and also those I should avoid). Much appreciated! Cheers, Andy

Hi everybody, I thought I’d write this to introduce myself and also to provide me with a little bit of motivation, as I expect this community will be great at holding me accountable for my goals. I’m currently in the middle of a live-in refurbishment with my wife and 2yo daughter. We’ve been hit by some tough times over the past three years since we moved in, so nothing has really gone to plan. I’ve been doing most of the work myself-I’m a civil engineering project manager by day and a DIY dad by day-off/evening/occasional weekend. It’s been hard balancing work, dadding, husbanding and DIYing. To date I’ve rewired the flat (had a sparky connect/test and sign everything off), had the external walls insulated, extended the kitchen units to accommodate a dishwasher that I plumbed in (relationship depended on it), stripped out, insulated, plasterboarded and redecorated my daughter’s bedroom, redecorated the dining room, stripped out and rebuilt a nightmare of a shower room (never doing a bathroom again!), had a wood burner installed and have future plans to extend, through the only way possible, with a purpose built garden office room. Admittedly, we bought the house with a naïve perception of how much work it would take to bring the house to where we wanted it to be, but the learning I’ve experienced on this project has helped me understand my strengths and weaknesses, which I now aim to put in to practise with property investments. Our saving grace with our is that we bought well below market value, so everything we do is adding value. We currently live just south of Edinburgh, so I’m interested in investing in the Lothians and into the Scottish Borders. My family home is in Sheffield so I’m using local knowledge and contacts to explore there and the surrounding areas. I also have my eye on Nottingham, Newcastle and my mum’s home town in the North West. Due to the shock death of my dad in 2018 we have a reasonable sum to invest from his estate, with the view to building a business that will support his (currently) four grandchildren as they grow up. More immediately though I aim to provide an income for my mum so that she can afford to retire to where they always planned to, but without tying up all the inheritance by purchasing with cash. The second benefit of a retirement income for my mum will be the ability to release equity from the family home by refinancing and renting out. It’s currently owned outright by my mum, so seems sensible to leverage it to increase income and allow its value to increase over the next period of growth. My plan is to take a BRR strategy utilising my project management and scope definition skills to provide clear requirements for a builder/contractor. Using this with cash purchases, I aim to be able to buy BMV, add value and then release a 10% ROI back to my mum (who will be the main investor). Where I stand right now is research, spreadsheets, research and more research. I have a goal of purchasing the first property in the first quarter of the year with another to follow in the third. I’m basing this on the minimum 6 month period for refinancing, however with buying in cash and refurbishing I expect this period to be shorter, however need to recruit a mortgage broker to discuss this with first. It’s been great reading about everyone’s journey’s and experiences on here, so will keep this updated with my progress. Please feel free to get in touch with advice, questions, critique of my strategy, or just to say hi. Thanks for reading this far! Dan

Hi. Could any Scottish landlord please tell me if there is a way of agreeing a holding deposit with a new tenant now that it is unlawful under the terms of the new Scottish Government tenancy agreement? Is there another procedure that achieves the same end i.e the tenant has the security of knowing that the advert for the property will be removed and the landlord will not renege on the agreement before the deposit is paid, contract signed etc? And the landlord doesn't need to wast their time or the time of any other prospective tenants by continuing to hold viewings in the case the tenant reneges after agreeing to rent the property. I honestly fail to see how a holding deposit is a bad thing... I would appreciate any clarification. Many thanks.

Hi All, We've just bought our second BTL property in Glasgow through Future Auctions (although outside auction). We purchased for £40k with Home Report being £60k, so quite a bargain (or not). We knew that the property would have some glitches we would need to take care of but one day before the deadline to complete, the seller's solicitor sent our solicitor all the documentation which had a surprise. A charging order on the property for £25k (£18k original amount plus £7k in interest because the seller did not pay). We were going to pull out but our solicitor, recommended by Future Auctions, said that we would most likely get sued if we did so as the auction purchase was considered "as seen". So we have gone ahead with the transaction. My questions to anybody who has experienced something similar are: 1. Is the charging order something we, as buyers, need to pay? All posts I've read online say that the seller must pay from the proceeds of the sale. 2. Does it make a difference if the purchase was made via auction? 3. Is it legal for the seller and auction house not to disclose this? 4. Any suggestions on what we should do? It's not a great situation to be in if you have to pay over 50% your original purchase price. So any help on this wpuld be much appreciated. Thanks!

Hi I'm and architect who used to work for a niche eco-housebuilder. I have been advising developers on sites for so long that I now find I know more than they do! I started by buying an office for my practice through my SIPP (which can also borrow), then got planning permission for flats on unused garden ground. Now building 4 flats, sold one before it started, keeping one myself as a btl, 2 yet to sell. This isn't the easiest route but it's a great way to use your pension savings to get into property. The profit is being used to seek more sites and high yield opportunities. The more I tell people what I'm doing the more opportunities come out of the woodwork. I'm now funding permissions for housing sites on Mull, Edinburgh and the Loch Lomond National Park. All generate significantly more value than a standard housebuilder would. My Skills; self funding early stage high risk pre-planning work design of high quality environments efficient house plans quick site appraisals business planning and site assembly advice planning advice Keen to learn; more about btl and being a landlord strategies for money out deals widening my experience of owning different property classes. I look forward to engaging with my local hub meeting in Glasgow. Gareth

Dear helpful community Me and my business partner are in negotiations to buy a vacant commercial property - small office block with separate workshops near Edinburgh. We are planning to buy cash with investor funds / bridging or a mix of both. I need to organise our exit strategy to refinance onto typical commercial lending. At the moment we only have experience in residential BTL / Holiday Let, Ltd company bridging, Ltd company holiday let but are novices when it comes to lending for a commercial property. The key areas I'd initially like some advice on are: Minimum timescale to refinance; Typical interest rate; Typical duration of mortgage / exit fees; Is interest only an option for commercial; If property bought below market value / valuation, what needs to be done to prove market value (surveyor valuation); Difference in valuation / lending with vacant possession vs leased vs running a profitable business from; Any other info you may deem useful. Any local brokers / hubbers with commercial experience, myself and my partner would be happy to meet and coffee and cake on us*! Ollie *Maximum 2 pieces of cake

Hi everyone, I’m Rob and I’m based in Glasgow. I’m new to property and my interest was sparked last year when I bought my own house. I found a love for negotiation that I didn’t realise I had and managed to save myself 15 k below home report which I thought was good. I found it exciting so looked into property more. I'm just married so most of my capital was spent on my wedding so now slowly building back up so I can invest myself. Meantime, I am looking at boosting my capital by helping other people and source deals. I’m interested to hear what people’s investment criteria tends to be? I’ve looked mostly at finding 15-20k below home report with potential returns of 10% annual cash flow. Have found a few and Scotland seems to still have good deals available but want to gauge a consensus for what people tend to look for so I then know what to go and find. Do most people want similar things? Thanks guys! Rob

Hi guys. While I have an Irish passport and am often in the UK for work, I live mostly in sunny South Africa. I have a couple buy-to-let properties in South Africa already, but very keen to start growing my UK portfolio (Edinburgh and Glasgow to be more specific). I have a UK bank account and I will have the 25% deposit required for the buy-to-let property. My concern is more about getting the mortgage for the remaining 75% without UK payslips, not being on the electoral roll, no national insurance number, etc. I was looking at a few options and would love some feedback on these ideas: OPTION A: - Move to the UK (for roughly a year in total). - Purchase a property with my 25% deposit soon after arriving. - Use bridging finance for the remaining 75% (from what I gather they are more lenient with not having payslips, although I realise the interest rates would be higher but it would be temporary) - Live in the property for 6 month while working in the UK (getting payslips) and renovating. - Remortgage the property as a buy-to-let (only possible after 6 month of owning the property as far as I'm aware, and by then I'll be able to apply with 6 months payslips). - Have a management company source tenants and manage the property while I'm back in South Africa. OPTION B: - Find a lender that will help me as someone living abroad and purchase the property with a buy-to-let mortage (concern is difficulty and high interest rates from these types of lenders). - Use a management company to source tenants and manage the property while I'm overseas. I would love some feedback from anyone who has experience with this, or just some ideas that I may not have considered. I'm not opposed to moving to the UK to get the ball rolling with this, and my current work is flexible enough that I can do this. But that said it would be much easier not to do that. Looking forward to any advise. Cheers, Andy

Hi all. It’s a pleasure to have found you all here. I’m an Edinburgh-based property investment newbie. I’ve enjoyed, and still do, a career in the public service and am lucky enough to earn a decent salary. But at 47 I’ve have recently had the epiphany that unless I find a way to significantly supplement it, I won’t have the options, lifestyle and security I need for my family in the years ahead. I have a long standing interest in property. I’ve renovated a number of my own properties and run a successful interiors blog. But I’ve never before had the capital, knowledge and confidence to take the leap into investment. Thanks to @robert dix I’m ready to start. I have a high level strategy - to take £70k equity from my family home. Using mortgages I want to buy an Edinburgh city centre property for short term holiday lets which will be fully managed. I also plan to buy a couple of buy and holds in Aberdeen (I’m originally from there and know the city) where yields look solid but capital growth could be strong. To scale up I’ll save the rental incomes and remortgage to reinvest asap. So, how to start.... Focusing on the Edinburgh property first, my initial action plan looks like this (a) speak to letting agent for advice about demand/rates/occupancy etc. (b) with that intel appraise the viability of the project in principle and start identifying possible properties (c) get along to the Edinburgh property hub meet up (6 Sep) (d) source an accountant - need advice about whether to buy through company wrapper before I can start offering on properties (e) find broker to get finance in place Writing that down makes it seem like I have a clear plan but I confess to feeling a little overwhelmed at this stage. Does that sound right for making a start? Does anyone have any suggestions about how to source the right accountant/broker or recommendations? Is local knowledge or investment specialism more important? Any other comments or advice about getting started also welcome. Thanks folks.

Hi All, Newbie from Aberdeen (or based in Aberdeen ). Have been watching “Homes under the Hammer” for over a decade and wondering when I’ll take the leap of faith. My BTL Journey began in December 2017, when I spotted an opportunity to buy a BMV 3 bed flat taken by a developer as a part exchange from my neighbor and discounted by almost £50K based on valuation. 2 bed flats in the area was over £25K higher and 3 beds around £40-50k sold prices so I thought it was too good an opportunity to miss and with a mate of mine we put in an offer for £200k and was accepted. We both put in 50% of deposit at 75 LTV. Property was let out in a week for £800 pcm part furnished, other properties in the area were going for £950 but some have been in the market for a couple of months and we preferred steady income and long term tenant than high rent and quick turnover considering the state of the Aberdeen rental and property market since the oil downturn. Our plan is to hold for two years and sell at market value and split our profit to invest elsewhere in Scotland. My goal is to get a number of BTL’s to act as a secondary pension in the future (still in my 30’s) and hopefully grow the portfolio to 10 BTL’s with a net income of around £5-7K pcm. I intend to buy one or two property every year from Q1 2019 within the price range of £50-80K each mainly in Glasgow, Dundee, Edinburgh, Livingston and Kilmarnock….I know it’s challenging to get 2-3 beds in Edinburgh at that price but I’m looking to buy lower end flats that don’t need much work (£5-10K spend to do up) and with high ROE. I’ve been consuming lots of posts here, listening to podcasts and reading books. Happy to get some advice or guidance from folks investing in the areas mentioned ( @Tonyng already doing that ). I’m also planning to be at the next Aberdeen meet-up and will try to visit the Glasgow one sometime this year. Question: I’ve seen a couple of posts about folks who invested in Ayshire and bought flats for £40-50K with a monthly rent of around £350-450 pcm from DSS tenants or privately? What are the challenges of working with DSS tenants? How can I find out more information of requirements and process of renting out to council for the three year scheme either in Glasgow, Kilmarnock or West Lothian? Will appreciate if anyone could share their experience here or point me to a thread where this has been discussed. Thanks

I am looking at my first deal ever. It's a modern "luxury" flat on the 6th floor, nice view, 1 bedroom. Location: Glasgow Harbour Home Report price: 120,000 My (potential) offer: 115,000 I am a little bit worried about the area. It seems "too" residential and a little bit far from "civilization" (corner shops, etc). Maybe similar to Western Harbour, Edinburgh in the sense that these flats were built around the financial crisis of 2008, and the area never picked up in a big way. I think my question is, does the property have a chance for capital appreciation down the road? Or should I invest in other areas of Glasgow, which is the market I'm interested in? If anyone knows the area and has a view, please let me know. Many thanks in advance.