18 replies to this topic

[oliver122]

hey guys , so at work we are being done over on the pension , we were on a final salary scheme , but its going to be changing to money purchase scheme that is no where near as good . With me being young i was thinking if it would be possible to buy a house to rent it out then once im older i have that to live on , and what are the pro's and cons , im 20 in may and an apprentice but not on a bad wage to be honest any advice would be great

[samsfern]

Have you got the money for a deposit?

[Bungle]

i have but i'm just out the door to go to work

i will post more later

[oliver122]

Have you got the money for a deposit?

well im looking to do it more for when im 21 but i want to see how feasible it will be , by the age of 21 i should be able save around 10k mark maybe abit more

i have but i'm just out the door to go to work

i will post more later

cheers Bungle

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A buy to let mortgage will need a 25% deposit minimum. That will be your first major hurdle

[samsfern]

Youll need around £30k for a deposit.

[oliver122]

A buy to let mortgage will need a 25% deposit minimum. That will be your first major hurdle

i got told by a family friend who was looking into this at one point that it might be possible to take a mortgage out for my self to live in for a short while so would be around the 10% value , and then approach them to say im having difficulties e.c.t so i will be renting it out to cover the mortgage payments

[MaxAndPaddy]

We've done a bit over the years

As already mentioned you need a higher deposit 20% of purchase price minimum

Buy To Let Mortgage rates are higher

Higher set up fees

The paperwork you need in place is a pain, all electricals need yearly tests, if its gas yearly checks on boiler, etc etc

Insurance

Most people are decent but be prepared for some possible bad times, we had a tenant that got some bumff post in MrsMax's name for catalogues and crap, she ran up nearly £2000 worth of bills all in MrsMax's name and we had to take police/legal action

Having said all that Its a good time to buy but whatever you pay for the property be aware you usually need to get back 125% of the mortgage payment back

So if the house costs you £600 per month the bank will be looking at you needing to get £750 per month in rent

[MaxAndPaddy]

A buy to let mortgage will need a 25% deposit minimum. That will be your first major hurdle

i got told by a family friend who was looking into this at one point that it might be possible to take a mortgage out for my self to live in for a short while so would be around the 10% value , and then approach them to say im having difficulties e.c.t so i will be renting it out to cover the mortgage payments

The banks/building society's have wised up to people doing this and the fees for changing the mortgage over to a Buy to Let one within a short time frame are so high they still end up getting their money off you

[Marcos Controls]

I rent out my old flat in the UK, had no problems changing to a buy to let mortgage. The outgoings mentioned above are not that much of a heartache, ie. gas and electrical safety checks. Landlords building insurance isn't that much higher than normal buildngs insurance for your own home. I would however suggest you pay a letting agent to take care of all of the hassle of vetting tennents, deposits and the legal side of stuff like the safety checks mentioned previously. Flats are worth looking into as the percentage return between mortgage/rent depending where you are looking to buy is similar to that of houses but for considerably less capital outlay

[Bungle]

right back home for a bit what do you want to know ?

We moved out for 5 years and house sat for someone, we then rented out our old family home

our mortgage company were happy to keep our existing mortgage as it was only temporary although they never gave us a time frame

we did insure the house as being let out

deposits now need to be kept by a 3rd party and will mediate if you want to keep some/all of the deposit

we first used an agent to run the letting for us but were useless so got rid of them after a few months

anything else you want to know ?

[rids]

As all above really about buy to let mtges etc.....Also tenants are a pain, i have less hassle renting houses than flats, flats always seem to attract short term tenancys and are usually not looked after that well, houses tend to attract a more stable/mature tenant therefore less stress/hassle. however with flats you tend to get more rent for your financial outlay. depends if you want an easy life with reasonable returns or a bit more grief and a better return.
Prices are low.... nows the time to buy.

[oliver122]

cheers guys , think thats most of what i need to know to be honest

[Sam]

cheers guys , think thats most of what i need to know to be honest

You'll need to do a lot more research if you're serious about getting a BTL.

Check http://www.landlordzone.co.uk/ - the forums are quite useful too.

[Cooperman]

My wife and I own several rental properties as part of our pensions and we've had them for over 10 years. It has worked out extremely well with excellent return on investment, increased capital values and no loss of cash value. We are not contributing towards the flash cars you see the pension and insurance company managers driving and which are parked outside their flash glass fronted air-conditioned offices.