So what's the crack? Is it something that is a viable prospect for me and Ms B to take on?

We have no capital to lay down, only around £50k of equity in our bungalow. Both of us have excellent credit history, so I reckon we may be good for the Buy-to-let mortgage.

We are thinking of investment for the future etc. Of course we have renovated our current bungalow, doing most of the work ourselves, so are happy to do some tidying up. Wouldn't want to take on a proper renovation though.

How about maintenance and tenancy contracts etc? Is that as complicated as I fear it might be?

I just can't make the maths of it add up, although I haven't studied the figures in great detail.

Any help appreciated.

 

I would also be interested to hear more on this as I have equity I could use

The in-laws bought our flat when we moved out, bought it for £190K and are renting it for £750 a month, I believe that after insurances, service charge etc they lose about £100 a month, but it's all about the long term increase, when they sell it they will be laughing

I don't think they were particularly wise in their choice of investment, but we got our cash so nur

 

I found this on buying toilets.

http://www.ehow.com/how_110262_buy-toilet.html

Hope this helps.

Stav.

 

 

C&B

This is something I am in the process of doing. I bought a flat 4 yrs ago and rented it out. 2 years later I released a small amount of equity out of it to buy a house which is now rented out to. equity paid (solicitors fees and such like as it hadnt gone up in value so much). I am now in the process of releasing the equity from the house to buy another one for me to live in.

With buy to let I think the rent has to be 120% of the mortgage payment each month so that it covers you should the property be empty for a month etc. Im sure Comedy Dan or someone like that could help there.

I have the flat on repayment and the house was on repayment but just changing to interest only. New one will be on interest only to for now. Reason been is the house i currently have is rented to my sister at the moment who is skint so I have to make up remaining mortgage payment every month. Changing to interest only will reduce payments so her rent will cover it.

hth

Ben

 

This is all quite interesting. The hard bit is juggling everything so that you can ask for an amount in rent that covers all the costs as said above. We aren't bothered about earning from it, I would just like to break even with it, knowing that we will end up owning the property.

Stavros - You really are a dillock.

 

This is the reason why there is a housing shortage fro first time buyers
as you fucking goms see it as a way of making money and make that
first step onto the ladder even further away.

THANKS A FUCKING BUNCH!

 

No Matt. Get your head out of your fucking arse.

I'm strapped up to the eyeballs with a big mortgage and at 32 years of age, I have no pension in place. I'm thinking of MY future and that of MY family.

I'm not in it to allow me to swan around in a Ferrari.

 

wrong time to buy now. but if your looking for the long run 30+ years then you can't loose. Remember you also then get taxed on any money you made or something like that so its not all good.

What would you do if you brought one to rent out, then houses prices fell say 15%, some people would want to pay less rent due to the fact the mortgauge would cost less, and due to the lack of tenants overall prices in theory would fall, aswell as first time buyers picking up houses, oh and other BTL.

 

Yes, I have considered all that. I know it's a big risk. I fear owning 2 houses in negative equity!! LOL.

However, we have to do something and this was our first thought.

 

christian why do you feel like you have to defend yourself?
Fair fucking play if you can do it and i say get in there son if you can afford it somehow

Why should it be your problem that you can afford a 2nd place and Matt cant?

In a couple of years i'll do the exact same thing. Break even or so on payments and when im old i have minimum £300k sitting mine all mine

 

for more opinions.

 

What you Adam-and-Eve it, just as I bump it up!!

CheeRS Chop.

I don't know what I felt I had to justify it, especially to cock-muncher Matt.

 

If your max'd out way put yourself under more financial stress?

You always praise to everyone else how its pointless to go beyond your means.

Sorry mate but your the one who is looking a little silly now, as your asking things that go against what you have been saying.

 

buy the worst house in the best street is advice i was given and do it up..

 

you're talking shit mate and i presume its through jealousy as you've shown that already above!

I think he's doing a very sensible thing to try and plan ahead for the future. Rather have a small amount of "financial stress" now than when he's retired with no pension and cant earn!

 

houses are overpriced at the moment,the housing market is slowing down,prices will fall towards the end of this year,it would be a crazy move to buy at the top of a peak and hope to not get in to trouble,you say your already skint now,trying to get a buy to let property at the moment is madness.

 

the way i see it: the rich are getting richer and if you have to lend money to do this then its a deffo nono. only people who have loads of money and been in the game a long time are benefitting from the situation.

in my area: 100k property £600 a month mortgage, and the rents around here would be about £500 on a 100k property. you work it out its not rocket science is it.

 

Very good advice, and also in the doing up process think wisely about getting people in to do it! I dont know you or your job, but if you get people in that cost you 100 quid a day and you can earn 150 or 300 or whatever a day it makes sence to get them in to do it and maybe work a weekend yourself in your current job if available and get the property rented out ASAP! As you dont want to be paying 2 mortgages yourself!

 

it's not rocket science that the word is 'borrow'

it's not necessarily essential to for the rent amount to cover the mortgage payments if you see it as a long term thing for the future where you have it on a repayment mortgage and will one day own it outright (in addition to your house that you live in) and can sell it off as a form of pension (or keep taking the rent from it for your pension after the mortgage payments have finished)

as long as you can afford to pay both mortgages without problems, even if the rental one goes unrented for a period of time and/or interest gates go up further, then you cannot really lose long term. although you can win by more if you don't buy now when prices are high and buy if there's a drop in the market (although you will not have as much, if any, equity in the first house then)

 

fingers crossed more ppl carry on buying buy to lets so when we have a govement change in 3 years time interest rates go up more so the new govermetn can make some money to get us out of all the dept that labour has got us into and ppl have to sell them then all us first timers can get on the ladder at a decent price/ rate

 

That is my theory. Use the £50k or so equity that we have in our Bungalow, which has resulted from 3 years of working our fingers to the bone with the renovation to put towards buying a Terrace in the city.

Then, go through it, spruce it up simply and rent it out.

As others have said, the rent earned from it might result in only breaking even, or maybe even a negative scenario, but the alternative is to pay £200 or whatever into a pension. At least the house will certainly be worth more in 30 years than it is now, by which time the mortgage will be paid off. If things work out well, the Terrace might actually jump up in value then we are in a good position.

Matt, when you grow up a little and get out there into the real world, you will see that it's not that easy. Money is tight for us, but we aren't on the breadline. However, I'm not getting any younger and you have to make plans, even if that means spending a bit of money.

If this outcome was obvious, I wouldn't have asked the question in the first place, but as I can see that the figures are a juggle and that there is a good chance that the mortgage would equate to the same or more than the rent/upkeep, I wanted to make sure I hadn't missed anything obvious.