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  • EADD Moderators: Shambles

Thinking of buying a house

rickolasnice

rickolasnice

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Joined
Apr 19, 2007
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And renting it out..

Any tips?

Is it likely I could rent it out for the same cost as the mortgage each month?

<3
 
rickolasnice said:
And renting it out..

Any tips?

Is it likely I could rent it out for the same cost as the mortgage each month?

<3
Click to expand...

get a time machine and go back 15 years and buy a house before the boom. Houses and mortgages are now atleast 6 times more unnafordable compared to average wages than they were back then. Thats not to say its not worth it, but it will now probably take almost an entire life time to get the thing paid off. The rent will probably match the mortage payments, but i doubt you'll see much in the way of short term profits. When its all paid off you will own the capital on a house that the tennants paid for, assuming you get good tennants that allways pay the rent and dont trash the place. The government are meant to be helping first time buyers with deposits on new build houses, i doubt if that applies if you intend to rent out the property though.
 
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That's a usefull article SHM. There may or may not come a point where I may need to rent my house out and live in a caravan, or campervan, or something like that, or 'go travelling'. Could possibly get £500 or £600 or more if i got my place 'done up a bit' and receive an income i could get by on.

charlieboy • 2 days ago

I became an accidental/forced landlord 15 years ago after having a few money problems, borrowing too much being the biggest problem. I went from rock bottom to going back into the black to then building up a 7 property portfollio to the point where I had paper wealth more than I ever thought would be possible. From last year I have now sold off five properties with the next two hopefully off my hand before summer.
I have had a good run,
 
That's pretty impressive MDB, 7 properties.I was pleased as punch when me and my wife bought one house.
Was in about 1997 and it cost £47k at the time. Was lucky with the timing as prices started rising after that. Would cost well over £100k now for the same house, wish I hadn't sold it as will never be able to purchase another property again.
 
its ok, no need to apolagise, that post probably wasnt very clear. I wish i was that guy though.

I dont know if my previous landlord (where i lived before i purchased my current home) was bullshitting me or not, but he said he owned around 50 properties, the guy was a builder/renovator and if what he said was true he must be fucking minted. His Dad drove round in an ancient ford fiesta and never bought himself so much as a new jacket, he had the same one every time he drove round to collect the rent every friday for several years.

So even if they were loaded they didnt seem to be spending their money in any conspicuous ways. Makes you wonder what the point of being loaded is if you cant even treat yourself to a better/newer car. Or the guy was bullshitting, or didnt give any of his money to his Dad (tight bastard in that case). He was excessilvely mean with money, only replaced the ancient communal carpets because he wanted to sell the property, and improve appearances slightly.
 
rickolasnice said:
And renting it out..

Any tips?

Is it likely I could rent it out for the same cost as the mortgage each month?
Click to expand...

edit - eh ? what went wrong there ?

covering mortgage with rent is running at loss, you need to cover the landlord insurance costs, and some cash for repairs to be breaking even.
Also worth putting some aside for legal fees in case you get cunts for tenants.
 
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At least if you buy your own house and pay for it's mortgage (whether by renting it out or not) you will own it out right by the time you hit your sixties and therefore can have a bit of security in retirement. If you leave yourself exposed to the peaks and troughs of the rental market you may find your (almost certainly meagre) retirement income will get you a crappy shared bedsit with a Welshman.
 
bummer said:
edit - eh ? what went wrong there ?

covering mortgage with rent is running at loss, you need to cover the landlord insurance costs, and some cash for repairs to be breaking even.
Also worth putting some aside for legal fees in case you get cunts for tenants.
Click to expand...

I'd feel bad for making tenants pay that.. But I think If i did get on the property ladder I'd just live there myself. Is there any real risk i should be aware of? With continual copulation without protection and wave after wave of immigrants flooding into the country I'm assuming house prices will continue to rise?

Thanks for the link by the way SHM..
 
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bummer said:
edit - eh ? what went wrong there ?

covering mortgage with rent is running at loss, you need to cover the landlord insurance costs, and some cash for repairs to be breaking even.
Also worth putting some aside for legal fees in case you get cunts for tenants.
Click to expand...
Does negative gearing exist in the UK? In Australia any shortfall can be offset as a tax loss, so things like council rates, repairs etc are tax deductible against you personal income.

In an ideal world you would collect more than your mortgage repayments but if it is only a small profit the capital gains tax eats into it at a much higher rate than the personal tax rate.

Two things to consider when buying an investment property is demand (you don't want it sitting empty) and future growth. Student digs close to popular Universities are gold mines because poor students don't demand much more than a front door that locks and hot water.

Have you consider buying a slightly larger place and renting out the spare room? It's the best of both worlds if you don't mind living with strangers
 
rickolasnice said:
I'd feel bad for making tenants pay that.. But I think If i did get on the property ladder I'd just live there myself. Is there any real risk i should be aware of? With continual copulation without protection and wave after wave of immigrants flooding into the country I'm assuming house prices will continue to rise?

Thanks for the link by the way SHM..
Click to expand...

Over a 25 year period they're going to both rise and fall. People obsess about it but its not necessary.

Risks include some kind of unpleasant development taking place nearby and you getting stuck with a place you don't want to live in but cant sell, shit neighbours and acts of god i guess.
Its a complex and stressful process, when I owned and eventually sold my place everything was made far more complicated because I was married to a compulsive liar and compulsive spender. I pretty much doubled my money in a short space of time but still walked away in debt. So there is a lesson to be learnt there..although not stricty a house related one. ;)
I barely understood the differences in the different types of mortgage available, the one thing i would say is expect to spend a lot in the first couple of years, there is often stuff that doesnt come up in the survey.
And also pay the bloody mortgage and insurance, religiously.
Its very easy to get behind.
My cunt of an ex would often not pay either so some months my place was uninsured. Literally days after I sold my place the area was hit by an earthquake which nobody saw coming. Caused serious damage to many houses round here.
If that'd happened when the place wasnt insured i would've been fucked.

Its a good idea to buy, I always said i'd never do it again. But then old age creeps up on you and a sense of security becomes more important. Plus you can fill the spare room with plants and not have to worry about yer landlord
 
rickolasnice said:
and renting it out..

Any tips?

Is it likely i could rent it out for the same cost as the mortgage each month?

<3
Click to expand...


dont !

Then after that you have to work out - how much of the property you own - can you get a landlord mortgage? How much of the property do you own % wise ? You mortage lender will not allow you legally to rent the property unless you own x amount of the property.
 
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Thanks bummer..

Bearlove - Didn't think of that.. Thanks.

But i decided against renting a property out and am now thinking of living there myself (I'm renting atm)..
 
I think you could possibly charge more for the rent than the mortgage costs - but you have to take into account maintenance which can cost a fortune (that's why I sold my house and went back to renting).Then there's insurance etc.
 
If you can afford the put-down payment for an average detatched home, you probably already have enough cash to survive for the rest of your life in some remote village in a developing country.

What is it the average for you lot in the UK? Something like 60grand?
 
more like £160,000 for the average UK house price.

£60,000 would get you something very rough in a very rough area. Decent 2 up 2 down terraces in Manchester are going for about £100,000 in a fairly rough part of town. They are twice the price, for exactly the same thinng just in different neigbourhoods. And half that price in the very worst of areas.

In particularly deprived areas terraced houses can be bought for as little as £10,000 last time i heard. In fact terraces in a run down part of Liverpool were being sold for £1, on the condition that the new owner had to complete renovation work on the properties to make them fir for human habitation, and fully compliant with all building regulations and health and safety stipulations.
 
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I bought a little 2up 2 down terrace last week 50 odd K euro, old school neighbourhood, same families there for ever, needs painting inside, loft insulation, and a new floor in the living room, there are two old single glazed windows upstairs that I am replacing and I will prolly instal a wood burning stove with a back boiler, 5K will do the lot with change. It will be a nice little place when finished and I hope top get 6K pa for it. Good bargains over here for cash buyers.
 
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