FruitBooTeR
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Registered: 18th Jan 07
Location: Wolverhampton Drives: S15
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Thinking about getting myself set up for the future and possibly making some money lol
Im 19, I work in an office which pays just under 14K a year so I take home roughly 1k a month after tax.
If my bank decided to give me a loan to buy a house, then I pay morgage every month, I would rent the house out and then hopefully pay morgage using rent money etc depending on how much.
Is something like this doable, I know the 'property game' works like this but no entirely sure how, but would something like this be a good idea?
Any experiances?
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nova_gteuk
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Registered: 15th May 02
Location: South Wales Drives: The Bandwagon
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House day.
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nik
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Registered: 19th Jun 00
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No offence but your be hard pushed to buy a house on that income mate, your need to save a deposit too unless you want your pants pulled down on repayments. And in this climate I wouldn't say investing in property to make money is a good idea.
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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you'd be looking for a buy-to-let mortgage.
Normally need about 10-20% of the house value as deposit (will vary depending on the mortgage lender) and they expect the rental income to be 125% of the mortgage cost per month.
Dont forget you'd need to keep the place in a decent state of repair for tennants, and you also have some other duties and landlord. You can employ an agent to find and run the renting of the proprty but they tend to want about 10% of the rental income.
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loo_goblin
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Registered: 14th Jul 04
Location: Horsham, West Sussex
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buy to let is dead
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Kathryn W
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Registered: 12th Oct 03
Location: Widnes, Cheshire
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Yeah me and t'other half are looking at the minute for our own place.
Your salary wont allow you much at all
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Colin
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Registered: 4th Apr 02
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You generally need a large deposit to get a BTL mortgage. 15 - 25% normally!
Any profit mae on rent must be declared as taxable income.
It could work to your advantage but it wont 'set you up' or 'make alot of money'.
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FruitBooTeR
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Registered: 18th Jan 07
Location: Wolverhampton Drives: S15
User status: Offline
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quote:
Originally posted by nik
No offence but your be hard pushed to buy a house on that income mate
I thought thats the whole idea of a bank loan and a morgage so you can afford to do it, if a morgage would be around the 500 mark each month mabi more mabi less who knows, but if you are renting it out then its paying for itself really?
Obv theres going to be other costs like repairs,furnishing,insurance etc
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Mad Moe
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Registered: 14th Jun 01
Location: Northumberland
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If it was to be your only property you wouldn't have to get a BTL Mortgage
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Colin
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Registered: 4th Apr 02
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quote:
Originally posted by Mad Moe
If it was to be your only property you wouldn't have to get a BTL Mortgage
As far as im aware any property you rent out should be on a BTL.
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Mad Moe
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Registered: 14th Jun 01
Location: Northumberland
User status: Offline
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quote:
Originally posted by FruitBooTeR
quote:
Originally posted by nik
No offence but your be hard pushed to buy a house on that income mate
I thought thats the whole idea of a bank loan and a morgage so you can afford to do it, if a morgage would be around the 500 mark each month mabi more mabi less who knows, but if you are renting it out then its paying for itself really?
Obv theres going to be other costs like repairs,furnishing,insurance etc
Why would you want a Bank Loan as well as a Mortgage
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Daimo B
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Registered: 20th Mar 00
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quote:
Originally posted by nik
No offence but your be hard pushed to buy a house on that income mate, your need to save a deposit too unless you want your pants pulled down on repayments. And in this climate I wouldn't say investing in property to make money is a good idea.
Have to concur.
With the due mild recession (it'll come, being in the western wolrd with teh US crash it's gonna be hard staying out), getting big loans and mortgages I think is supposed to be quite hard atm.
Don't forget the costing, bills, solicitors, surveyors etc... Need to shell out a few grand before you can even move in.
What if you get sh1tty tenants.
You will only get an interest only type mortgage, i don't see the point in them. You have to hope the house value goes up to make any money, as your only paying the interest.
Its a good plan, but like most things in life, if you want success with something, you need a decent amount of capital in the first place 
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Mad Moe
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Registered: 14th Jun 01
Location: Northumberland
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quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
If it was to be your only property you wouldn't have to get a BTL Mortgage
As far as im aware any property you rent out should be on a BTL.
Should be, yes. Has to be, No.
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Colin
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Registered: 4th Apr 02
User status: Offline
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quote:
Originally posted by Mad Moe
quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
If it was to be your only property you wouldn't have to get a BTL Mortgage
As far as im aware any property you rent out should be on a BTL.
Should be, yes. Has to be, No.
Take a chance? Could find yourself without a mortgage if you do!!
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Daimo B
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Registered: 20th Mar 00
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Oh, also, you've got to look at rental prices in the area.
If your paying £500 on an interest only mortgage, but the general renting prices are £400, then your still loosing out.
You need to charge more than the mortgage.
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Mad Moe
Member
Registered: 14th Jun 01
Location: Northumberland
User status: Offline
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quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
If it was to be your only property you wouldn't have to get a BTL Mortgage
As far as im aware any property you rent out should be on a BTL.
Should be, yes. Has to be, No.
Take a chance? Could find yourself without a mortgage if you do!!
What can they do though? Force you to sell it? Still haven't lost anything and you'd have to be pretty fucking dumb to get caught out? I've spoken to numerous Mortgage advisors who actually recommend this as a legitmate course of action
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FruitBooTeR
Member
Registered: 18th Jan 07
Location: Wolverhampton Drives: S15
User status: Offline
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quote:
Originally posted by Mad Moe
quote:
Originally posted by FruitBooTeR
quote:
Originally posted by nik
No offence but your be hard pushed to buy a house on that income mate
I thought thats the whole idea of a bank loan and a morgage so you can afford to do it, if a morgage would be around the 500 mark each month mabi more mabi less who knows, but if you are renting it out then its paying for itself really?
Obv theres going to be other costs like repairs,furnishing,insurance etc
Why would you want a Bank Loan as well as a Mortgage
Sorry I mean the same thing, Morgage then
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Mad Moe
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Registered: 14th Jun 01
Location: Northumberland
User status: Offline
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Most lenders will only allow you to Borrow 3.5 times your annual Salary so you'd probably only be able to borrow £50K on your own
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FruitBooTeR
Member
Registered: 18th Jan 07
Location: Wolverhampton Drives: S15
User status: Offline
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This ideas kinda gone down the pan lol
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Colin
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Registered: 4th Apr 02
User status: Offline
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quote:
Originally posted by Mad Moe
quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
quote:
Originally posted by Colin
quote:
Originally posted by Mad Moe
If it was to be your only property you wouldn't have to get a BTL Mortgage
As far as im aware any property you rent out should be on a BTL.
Should be, yes. Has to be, No.
Take a chance? Could find yourself without a mortgage if you do!!
What can they do though? Force you to sell it? Still haven't lost anything and you'd have to be pretty fucking dumb to get caught out? I've spoken to numerous Mortgage advisors who actually recommend this as a legitmate course of action
Sounds like your being advised to commit fraud! Its fine if thats what you want to do, I expect plenty people do but I wouldnt, not when theres £k's borrowed in my name!
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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Our normal mortgage has a clause that we can not rent the house for the first 12 months; after that period we are free to rent to a third party. No clause as to the amount of rent that must be collected etc.
Ours is a private mortgage not a BTL
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James
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Registered: 1st Jun 02
Location: Surrey
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Buy To Let mortgages require a hefty deposit. It's a percentage of the property's value but I would estimate that for any property you would need to put down at least £15k.
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FruitBooTeR
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Registered: 18th Jan 07
Location: Wolverhampton Drives: S15
User status: Offline
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Is it possible to get a seperate loan then for the deposit and pay that back aswell as the monthly morgage.
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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It's possible but I would say it's unlikely. I'm not too sure TBH.
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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quote:
Originally posted by FruitBooTeR
Is it possible to get a seperate loan then for the deposit and pay that back aswell as the monthly morgage.
Not going to happen!
Save up some money, think about this again in a year or 2!
Without any coin to put down your not going to be able to buy a house.
I was only on £12k a year when I bought my 1st place, bank said I could borrow up to £40k, I needed £36k, though I had over £10k in the bank to help with deposit & fees etc
Small amounts to some but im not a high flyer, I know I can only spend within my means!! 
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