Hi General,

First things first - is the flat in a good rental area that already broadly reflects the type of tenant you are targetting ( eg is it in a student area or perhaps by a hospital to target nurses etc or is it on a rough a hell council estate which is 95% dss ? - all potentially good for finding a tenant in but you have the marry the tenant type to the area)
In my area there are loads of empty newbuilds that the devepolers are trying too offload cheap to landlords - its having the effect of driving down to rents that these properties can achieve as the market is flooded.

When considering the sums you need to allow for extra cost of bringing the flat to a lettable condition (sounds obvious but you may need to give it a redecorate in neutral colours, neautal carpets / laminate floros etc - most tenants will expect a shower not just a bath so make sure this is a box ticked and a new fresh kitchen is always desireable).
Once your flat is in a lettable condition you will either have to find a tenant or put it with a lettings agent. They will charge you a finders fee ( typically £100+ but more if its on a let only basis) , may also charge you for doing such things as photographic inventories etc). If you want to sidestep the hassle of collecting / chasing rent and managing maintenance and repairs etc then the agent can do this also but will charge between 8 and 12.5% of income. You also need to allow for months when the flat is empty - in a good rental area anticipate no more than 10 months income every year. Other costs include annual gas safety cert (circa £60),ongoing maintenace and if its a flat in a block there may be a monthly or annual service charge

Then of course there is the real risk of non-paying tenants who you have to evict and they trash the place - its a real nightmare unless you have properly vetted / references tenants preferably with a guarantor - this is why I think its best to go through a letting agent as this will be handled by them.

The other big consideration is to do with your exit strategy.. ie. will you keep the flat for 3 years or 25years etc. If you are buying now purely because you percieve equity growth in say 3 or 4 years then think long and hard... I think there are too many flats and all of the recent boom buyers will be looking to upsize tohouses with gardens in a few years and I think the market for flats will stay flat for a good while longer than houses.

All that said I'm just a cynical git as I see the worst of the places that get trashed and abused - has not stopped me investing although I avoid newbuild flats.

I would strongly advise you visit a good local lettings agency and speak with them about areas, costs , rent expectation etc before you commit

Good Luck - keep us posted