mattk
Member
Registered: 27th Feb 06
Location: St. Helens
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This has been great, thanks very much,
#The house is up for £49,500, its got all the signs of being a reposession, its got tape on all the taps and boiler, and it sold in 2007 for £97k therefore I think its a repo
We anticipate to get it for £42k, however we can manage the asking price. We have our mortgage agreed with a 20% deposit, of which we have in an account ready to go.
I think we are going to let it furnished, is this better? I was thinking its the sort of house a young couple would move intogether in so Id assume they didnt have white goods and a 3 piece suite, They can get their own tele.
Im self employed so Im quite clued up with the tax side of things, I assume its the same as running a sole trader business?
this house isnt being bought for the cash it makes every month, the cash it makes will be left in the account untill there is another deposit in there to buy another one. Dependant on how this one treats us 
Cheers again for your input!
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AndyKent
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Registered: 3rd Sep 05
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Don't supply electricals. Anything like that has to be maintained so if it blows up you have to give them another one.
Same with cookers. The nightmare we've had with elements breaking and the tenants have an expectation that the landlord will fix.
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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Ive got a gas cooker out of my house that I could put in, Obviously I can do the landlored safety cert.
electricals are cheap enough from tesco anyway so frig them, they can supply their own
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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quote:
Originally posted by mattk
This has been great, thanks very much,
#The house is up for £49,500, its got all the signs of being a reposession, its got tape on all the taps and boiler, and it sold in 2007 for £97k therefore I think its a repo
We anticipate to get it for £42k, however we can manage the asking price. We have our mortgage agreed with a 20% deposit, of which we have in an account ready to go.
I think we are going to let it furnished, is this better? I was thinking its the sort of house a young couple would move intogether in so Id assume they didnt have white goods and a 3 piece suite, They can get their own tele.
Im self employed so Im quite clued up with the tax side of things, I assume its the same as running a sole trader business?
this house isnt being bought for the cash it makes every month, the cash it makes will be left in the account untill there is another deposit in there to buy another one. Dependant on how this one treats us
Cheers again for your input!
Don't furnish, the amount of revenue they will generate extra is minimal, imo i think it reduces your target market and the risk of damage etc is not worth it.
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AndyKent
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Registered: 3rd Sep 05
User status: Offline
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I'd only furnish if I had stuff I didn't want. Probably be trying to flog them to the new tenant first though and make some cash
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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Sound, unfurnished it is. cheers
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Edd
Member
Registered: 8th Nov 04
Location: Glasgow
User status: Offline
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quote:
Originally posted by Toby
Im not using a BTL lender though and have carried on with my current mortgage lender (this is not really an option for those that are purchasing with the intenion of letting though i have seen it done)
Risky game to play not having consent to let mate.
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Some estate agents will not market the house without a letter to say your mortgage provider is happy for you to rent.
its a dangerous game to play.
You better off getting on the phone. Will probably cost £150/£200 for the mortgage company to agree to it and write a letter to confirm its OK.
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baza31
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Registered: 19th Apr 03
Location: yorkshire
User status: Offline
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Dont go in with your mate it will be a big mistake.
I also think the only way you can earn a decent wage out of letting houses is buying sub 80k properties . How i see it which maybe wrong. If i only have to spent 70k to get £500 a month then whats point spending 100k to get £600 a month? best buying cheap houses that at least the tennant covers ALL costs.
I think the people in contant negitive throughout the morgage are putting their heads on the block and making a very bad move . My opinion of course
[Edited on 24-08-2012 by baza31]
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noshua
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Registered: 19th Nov 08
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Why? Any loss will only be half as bad, probably has a separate trade that'll come in handy sit it being a repo and more then likely doesnt have the other 1/2 of the deposit.
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baza31
Member
Registered: 19th Apr 03
Location: yorkshire
User status: Offline
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quote:
Originally posted by noshua
Why? Any loss will only be half as bad, probably has a separate trade that'll come in handy sit it being a repo and more then likely doesnt have the other 1/2 of the deposit.
thats not the way to look at it . There is a list as long as my arm on reasons not to . Getting a friend and mixing money and business will always end in tears when the timescale is as great as this is . If you was turning a house round to sell then maybe as its a quick turnover. Both their lives will change alot in 25 years and what happens if for example his mate wants out 3 years down line and he cant afford to buy him out? also if the house is 50k the extra deposit isnt much more ,he could put his 10k down which is still 25% get a interest only untill the house is complete so he can finantially manage then change to repayments . When money is involved it will certainly cause arguments
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
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We have the money to buy at the asking price in an account already. If he wants out in 3 years then we will discuss that then, I doubt it though. this isnt something we have dreamed up over night, we have been looking for the right house since we first discussed it in march this year.
Either of us could afford the house on our own anyway. we were initially going to buy one each, but have decided to go halfs so we can get our heads around what we need.
The plan ultimately is to buy one a year for the next 10 years. we shall see on that one though.
whats to argue about? a direct debit from our individual accounts into our joint account to cover expenses while its empty and then just leav the rent to build up when its let out. neither of us need the income from the rent just let that build up into another deposit
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baza31
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Registered: 19th Apr 03
Location: yorkshire
User status: Offline
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If you can afford it outright why you bothering getting a partner? Makes no sense in my eyes .
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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To share the work load. we both want to try it so we will try it together first while we are learnring. went to veiw the hous on saturday. its a pearler for 49 grand. will place an offer on it tomorrow
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baza31
Member
Registered: 19th Apr 03
Location: yorkshire
User status: Offline
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What type of house is it? If it's up for 49 I bet 45 would get it. What needs doing to it ? What's realistic house prices from neighbouring houses?
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Sharing the venture just reduces your exposure to problems. Its not destined to fail, there are some issues to iron out but even if either party wants out, the remaining partner isn't legally bound to have to bail them out. Worst that would happen is that you'll have to sell it to realise his half (or indeed yours) and at that price, you'd be up anyway.
If you've not got someone to manage it, my mate has a sideline business doing that, will put you in touch. Last two I've done the viewings for him and they've flown out, he has them on Rightmove and some other big places. Not sure if he'd go fully managed while its a bit far away but I'd certainly recommend him for the contracts and advertisement particularly if you're not clear what is needed.
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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offer of £47.5k accepted, couldnt get an 80% mortgage though because Im under 25, so we have gone for a 70% mortgage with northern rock
30& deposit is quite a hit and not as much as we wanted to pay but we can just about afford it. mortgage is only £170 a month between us. next door, 2 bed as opposed to our 3 bed was on the market for 4 days and is now let for 475 pcm.
looks like its a goer, should have it in a few weeks
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IvIarkgraham
Premium Member
Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
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well done!
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corsa-sxi
Member
Registered: 11th Jul 03
Location: Kingston upon Hull
User status: Offline
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IS this a buy to let mortgage or normal mortgage?
What are the risks of renting without a BTL mortgage?
Also what are the risks of a cash in hand type of rental?
What % is capital gains tax
Is there no threshold for rental income? or is it just your normal income allowance?
When people say offset the taxable amount on interest and maintenance, does it have to be maintenance on the house? is there anyway to pocket that maintenance?
[Edited on 05-09-2012 by corsa-sxi]
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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Bought.
My dad has the keys as we are both half way through a tour of europe. cant wait to get stuck in. new thread will be made.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Nice one.
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drunkenfool
Member
Registered: 7th Feb 03
Location: Hereford Drives: Audi R8 V8
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You can have two residential mortgages so long as a "family member" lives in the other one ;-)
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random dav
Premium Member
Registered: 7th Jan 04
Location: NSW
User status: Offline
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Ace, look forward to seeing it
WRLFC !
Project cars
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