Dan
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Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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i have about 6/7k saved up for a deposit for the house, but the gf is now going back to college and cutting her hours to part time for a few years to lewanr more.
as i have this money sitting there and we cant really afford to move out, would it be a good idea to buy somewhere and rent it out? i put away 400 a month min now, so if it flopped id be able to keep myself afloat anyway?
opinions?
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Colin
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Registered: 4th Apr 02
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Depends on a few factors tbh, but if your confident you can occupy it with a tennant for as long as you need that will cover the cost of your mortgage then it might be a goer & it is always a good idea to get on the house ladder asap, however 6/7k might not stretch far in means of deposit, fees, stamp duty, any decorating etc.
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Cosmo
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Registered: 29th Mar 01
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its one option, especially if it maybe somewhere you might want to live in a few years time...means you can get on the property ladder now, have the mortgage being paid for a few years and hopefully make a bit of cash if the value rises. Dont forget you'd have other costs too, and certain responsibilities of being a landlord.
The other would be a safer and easier option and just invest the money for a few years and make a bit of money on it that way.
Probably best speaking to a financial advisor and see what they'd suggest.
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Colin
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Registered: 4th Apr 02
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Cant you buy now together, with a mortgage on principle on her current wage (full time) then let her do her college thing & part time work for a couple years & just pull together to keep afloat, maybe give up on any unnecessary outgoings to make it work.
I think renting on a 100% mortgage would be a mistake, but it would also be a mistake to put off buying for 2 years.
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Cosmo
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quote:
Originally posted by Colin
I think renting on a 100% mortgage would be a mistake, but it would also be a mistake to put off buying for 2 years.
on a buy-to-let mortgage though he wouldnt be too bad, aslong as he can bring in the rent to cover 125% of the monthly payments (is about the normal terms IIRC).
Even if he just puts a letting agency incharge and pays them a certain amount so its less work for him he could make a little money, be on the ladder and might be able to release some capital when they do move in for any work they may want to do.
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by Cosmo
quote:
Originally posted by Colin
I think renting on a 100% mortgage would be a mistake, but it would also be a mistake to put off buying for 2 years.
on a buy-to-let mortgage though he wouldnt be too bad, aslong as he can bring in the rent to cover 125% of the monthly payments (is about the normal terms IIRC).
Even if he just puts a letting agency incharge and pays them a certain amount so its less work for him he could make a little money, be on the ladder and might be able to release some capital when they do move in for any work they may want to do.
1st off you'll never get a BTL without having a heafty deposit!! Secondly with no deposit & 100% of the property value borrowed theres going to be hardley any profit never mind money to pay a letting agent..................bad idea imo!!!
If he had £20-£30k to invest, id be saying differently!!
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Dan
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Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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ill be putting down 6 or 7k minimum, on a property of around 90k in value, the works no problem as my step dads a builder.
think i need to talk to him as he rents out 4 houses and 4 flats atm
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Cosmo
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Registered: 29th Mar 01
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quote:
Originally posted by Dan
ill be putting down 6 or 7k minimum, on a property of around 90k in value, the works no problem as my step dads a builder.
think i need to talk to him as he rents out 4 houses and 4 flats atm
tbh on a house that price (roughly 10% deposit) it could be worth it. If you've someone close to you who has done it before then thats the best place to ask 
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Colin
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Registered: 4th Apr 02
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Will 6 or 7k be a deposit or will that be for other things aswell??? Find out what kind of property youd get for that sort of money, & if possible what similar ones rent out for in the same area.
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Dan
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Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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theres one down the road from my mums 1 that she rents out for 87k, she is getting about 450 a week as far as i remember... i dont mind if i even have to make the money up to pay the monthly bill, they will still be buying my 2nd step on the ladder so to speak
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Colin
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Registered: 4th Apr 02
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Cant you & your burd manage with her working part time????? Or do you not want to move in with her yet???
[Edited on 01-06-2007 by Colin]
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Dan
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Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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well we could manage, but would b a struggle, just think y not let sum1 else pay my future while we sit tidy for a few eyars
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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i think you really need around a 20% deposit to make a rental worthwhile. I think 15% deposit for a BTL
We going to rent out our Edinburgh flat for around what its costs us a month. We wont really make any profit, but the flat should still go up in value which is enough for me.
We have around 40k equity in that property.
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rustyarchs
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Registered: 29th Aug 04
Location: scotland
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do you not need a 25% deposit min for all BTL mortgages??
Kirsty
[Edited on 01-06-2007 by rustyarchs]
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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think its min 15% but that'll all depend on the lender n shit
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Dan
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Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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id just get a normal mortgage and then rent it out lol
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