Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Have been thinking of doing this for a while ages, went off the idea when everyone seemed to be snapping houses up, but have been thinking of it seriously again for the last month or so.
I know there are a few people on here who do it so was wondering if its still worth while? I have a decent amount of money to invest in a few properties (along with buy-to-let mortgages for the rest) and would look at buying places that need a bit of work doing as have a few close family and friends who do various construction type jobs.
I think my idea would more be to buy in lower value places with good rental (not after huge income from that) and has a good prospect to rise in value over the next 2-3yrs then sell up.
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Ally
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Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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I am looking into getting another flat, like a small flat in Newport centre and leasing it to pay the mortgage
I would arrange to speak to an IFA for some advice. It is a good idea, if it were me i would rent the property untill mortgage was paid for then sell the house and use that as my retirement fund (i plan to rent out 3 - 4 properties once ive sorted myself out)
But selling up after a few years also sounds like a good idea
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Cosmo
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Registered: 29th Mar 01
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My dad is an IFA 
I wouldnt want to keep it too long TBH, to many risks with what could happen to effect the value of the property and the longer you keep it the more things that are eventually going to need fixing due to general use.
My GF's Dad has done a few places over the last year so going to have a word with him aswell, see if things have been moving OK for him.
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Brett
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Registered: 16th Dec 02
Location: Manchester
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Sounds like you've got enough family and friends who are already involved in doing that sort of thing for you to have enough info at hand without asking on a car forum.
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Ally
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Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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You can never get enough advice thou Brett, im sure someone on here has experience in it as well
Enough with the arsehole wank stain attitude
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by loafofbrett
Sounds like you've got enough family and friends who are already involved in doing that sort of thing for you to have enough info at hand without asking on a car forum.
I know one person who is doing it  If I based all decisions off one persons opinion or situation then it wouldnt give me much to go on.
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Brett
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Registered: 16th Dec 02
Location: Manchester
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A mates dad owns 28 houses (almost one entire street!  )
He lets them out and has never had any problems with any being empty and always has people in them. Not only does he use the money to pay off the mortgages, but he also makes a tidy £120k a year for himself and doesn't work (well, apart from maintenance to the houses).
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topshot_2k
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Registered: 1st Dec 03
Location: Northampton Drives: Pug GTi-6
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i'd go for it, im currently sorting mine out, hopefully get the place in march. buying one which me and gf will live in, second is a buy to let with my parents (50% each) which we will rent out.
i wouldnt worry about selling it in 2 years mate, general repairs are affordable if its looked after and the way demand is going prices will only rise.
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by topshot_2k
i wouldnt worry about selling it in 2 years mate, general repairs are affordable if its looked after and the way demand is going prices will only rise.
TBH its not because of the costs after a certain amount of time, its just not something Id want to be doing for long (5yrs max), have bigger and better ideas but this is an easier way to get a bit more money so I can do those things in the future.
If they were making me a load of money then I may think about keeping them on, but I doubt the rent will be anything to write home about and just an increase in the value is what I'll be wanting.
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topshot_2k
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Registered: 1st Dec 03
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if you have decent amount of money have you thought of buying land to build a new house/houses on? or renovation?
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by topshot_2k
if you have decent amount of money have you thought of buying land to build a new house/houses on? or renovation?
too much work! Would rather it be easier, so just a place with a bit of work needed, someone in renting the place for a few years, sell it on.
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STEvieXE
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Registered: 21st Jan 03
Location: Ballymena N.I.
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i think if u have one house u can buy a whole load using them as security too borrow more money...
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by Cosmo
Would rather it be easier, so just a place with a bit of work needed, someone in renting the place for a few years, sell it on.
If it were that easy everyone would have six of them. Renovating a house is difficult and expensive and unless you are very careful indeed you'll lose money on the work and the rental.
I'm yet to watch any house programs on the TV without the newbie developer going massively over budget because they want fancy fittings to appeal to the upper end of the market, but they end up taking just anyone so they're not losing 700pm every month its empty after the six months they already took fixing it up.
If you're buying them cash then may be, but you need at least 25% down to cover the mortgage. Then you've got to make sure its going to appreciate sufficiently to cover your legal fees and general messing by the time you sell short term.
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Cosmo
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Registered: 29th Mar 01
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not everyone has the cash to buy an extra house, even just the 25% for the mortgage!
I more meant I dont want to be building new houses, etc. as mentioned, so just doing some renovation (as in not major major work) is easy!
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stuartmitchell
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Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
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Think the best way is to invest in an area near colleges and uni's etc, fill it with cheap Ikea or (2nd hand stuff) and rent it out to students!
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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You generally wouldn't make rental income all year round in that case. Even if you can convince the existing tenants to offer you a retainer for the next academic year they will leave eventually and you'll not have new people until after the summer.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by Ian
You generally wouldn't make rental income all year round in that case. Even if you can convince the existing tenants to offer you a retainer for the next academic year they will leave eventually and you'll not have new people until after the summer.
Plus more often than not they will fucking trash the place...
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by MarkM
Plus more often than not they will fucking trash the place...
would be my main reason for not doing that 
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