Thinking of buying a brand new property to let to tenants - is it worthwhile?

[geek84]

Hi Folks

There are some new properties just build near where I live and are now up for sale. The average 3 bedroom property costs around 135k.

I was thinking of purchasing a 3 bedroom property by obtaining an interest only mortgage and then letting the property out to tenants. Do you think that would be a bad idea considering the amount of investment that I make? Obviously, there would be next to no repairs & maintenance for at least the first few years (By the way,I am hopeless at DIY).

Thanks in advance for your responses.

[Richlist]

In order to persuade you that you will be wasting your time & effort you will need to provide the following info:

Purchase price.....and what that includes eg legal fees/ stamp duty etc

Purchase costs....if you are paying them yourself

Mortgage terms eg interest rate, arrangement fees etc

Rental income.

If you will be using an agent

Freehold or leasehold

These days NEW property often includes carpets/ flooring & white goods in the kichen. This may sound great iniitially but as soon as you complete the purchase that property is worth £5K less than you paid for it because all those bits are now second hand. So you need to hope that capital values rise to cover your losses.