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Author to buy or not to buy
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 19:00   View User's Profile U2U Member Reply With Quote

I'm thinking about buying a flat to rent out.....

i will be needing a mortgage of 110k

its a 2drm flat that (going by propertry folk etc) could rent out for 500 to 800.

The mortgage i'm thining of will be about 450 a month + ins etc...

I think i already know this isnt ther best idea.... just think i need to be told so

The mortgage will be interest only, not repayment..... the profit (if any ) would be kept to pay off loan in 20/25years whatever.

Think i may wait half a year, buy something cheaper and more local....

cheese i dunno
Adam-D
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Registered: 11th May 02
Location: Cheshire
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5th May 05 at 19:11   View User's Profile U2U Member Reply With Quote

its best to buy a rundown one cheap
do it up
then rent it out
Mark Petty
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Registered: 26th Jul 01
Location: Bournemouth Drives: Suzuki gsf600
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5th May 05 at 19:12   View User's Profile U2U Member Reply With Quote

if i could afford it i would
Twiggy
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Registered: 15th Oct 04
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5th May 05 at 19:13   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by Adam-D
its best to buy a rundown one cheap
do it up
then rent it out



Ur house?
James R
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Registered: 4th Feb 03
Location: 205GTi16/306GTi16
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5th May 05 at 19:13   View User's Profile U2U Member Reply With Quote

The only profit to be made would be through appreciation of the propety.

sounds like a better morgate could be struck though on a 100k lend current repayemtnsa re 400 a month, and recieve 600 in rent.
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 19:55   View User's Profile U2U Member Reply With Quote

i need to save up a 10% deposit i think... only got around 6% just now

rates are alot better.

Might just look for a 80k to 100k place after christmas, giving me a bit more time to save up....

Colin
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Registered: 4th Apr 02
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5th May 05 at 19:59   View User's Profile U2U Member Reply With Quote

Do it adam Property will only make you more money!!! I just bought a repossessed flat im going to renovate, live in a couple years then sell.....should make a nice bit on it
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 20:01   View User's Profile U2U Member Reply With Quote

yes, thats all fair and well Comumbo...

BUT

I wont be living in this, i'd still be staying in my flat in the burger.
Its an interest only mortgage
There is no gaurantee that i'm going to make any decent profit on rent (decent is 200 a month in my book)

I'm goign to wait and save up a few more K's
antonOO2
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Registered: 17th Sep 02
Location: Midlands
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5th May 05 at 20:06   View User's Profile U2U Member Reply With Quote

looking to buy to rent myslef but i would say look at lower priceed properties and build a portfolio.
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 20:07   View User's Profile U2U Member Reply With Quote

how low is low to buy more than one
antonOO2
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Registered: 17th Sep 02
Location: Midlands
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5th May 05 at 20:10   View User's Profile U2U Member Reply With Quote

well im looking at two up two down houses to rent out in a fairly bad area in honesty but hey they are guarenteed rent by the estate agents.They are going for around 37k
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 20:11   View User's Profile U2U Member Reply With Quote

not a hope in hell getting anything worth standing in for 37k round here

a garage for 20k maybe
antonOO2
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Registered: 17th Sep 02
Location: Midlands
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5th May 05 at 20:12   View User's Profile U2U Member Reply With Quote

i know these arnt buy me ,they are about 20 miles away
wouldnt even get a small flat in my town for 110k
p4uls corsa
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Registered: 2nd May 05
Location: BRADFORD
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5th May 05 at 20:13   View User's Profile U2U Member Reply With Quote

any property u rent out and dont live in u have to pay tax on the profits
Colin
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Registered: 4th Apr 02
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5th May 05 at 20:16   View User's Profile U2U Member Reply With Quote

Why in Edinburgh Adam??? Pick somewhere theres good renting potential with lower prices!! Where I live there is alot of local industry, thousands of tradesmen and specialists coming & going and looking for places to stay. I Know I could easily rent out my place and make money on it if I wanted!! Some of the properties around mine are owned by landlords!!
Ian
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Registered: 28th Aug 99
Location: Liverpool
User status: Online
5th May 05 at 20:18   View Garage View User's Profile U2U Member Reply With Quote

Yeah you're better with a capital mortgage as you don't make profit per se.

Money-wise its not great unless you're putting down a big deposit. I would wait to see who gets in to power as well before speculating on property prices appreciating.

Or if conservatives get in sign up to a 10 year fixed rate tomorrow hehe
antonOO2
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Registered: 17th Sep 02
Location: Midlands
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5th May 05 at 20:20   View User's Profile U2U Member Reply With Quote

Adam you not interested in buying a place to do up over a period of say a year .If you get the right place and do a good job buy sticking to a good budget you could make a good deposit for a buy to let place ??
just an idea
vibrio
Banned

Registered: 28th Feb 01
Location: POAH
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5th May 05 at 20:22   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by Adam Kindness
I'm thinking about buying a flat to rent out.....

i will be needing a mortgage of 110k

its a 2drm flat that (going by propertry folk etc) could rent out for 500 to 800.

The mortgage i'm thining of will be about 450 a month + ins etc...

I think i already know this isnt ther best idea.... just think i need to be told so

The mortgage will be interest only, not repayment..... the profit (if any ) would be kept to pay off loan in 20/25years whatever.

Think i may wait half a year, buy something cheaper and more local....

cheese i dunno


My sister does it. she is in new Zealand
AK
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Registered: 5th Jul 00
Location: Aberdeen City
User status: Offline
5th May 05 at 20:22   View User's Profile U2U Member Reply With Quote

Columbo - this flat is in Aberdeen

I'd like to rent a flat out in Edinburgh though, a lot closer as and when i need to do things to it. Wouldnt like go through an Agent.

Ian - yup.... pretty much my thinking. I'm going to have a look again i 6months
vibrio
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Registered: 28th Feb 01
Location: POAH
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5th May 05 at 20:24   View User's Profile U2U Member Reply With Quote

Lisa's flat is in Aberdeen too

hers is a capital mortgage though


you really want 10% deposit

[Edited on 05-05-2005 by vibrio]
AK
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Registered: 5th Jul 00
Location: Aberdeen City
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5th May 05 at 20:25   View User's Profile U2U Member Reply With Quote

yup...

I'm going to try for 10% and capital repayment.

Just had a look on http://www.espc.com

there is sweet FA in Edinburgh for sub 100k really
Bonus
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Registered: 13th May 02
Location: Cheltenham
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5th May 05 at 20:52   View User's Profile U2U Member Reply With Quote

Dont do the capitial repayment! Thats crazy.

Why tie up your capital? Whats the point of repaying the loan now? Sure, you have to repay it at the end, and the mortgage company are going to ask you what your repayment vechical will be. Quite simply, your way of repaying your mortgage is your property.

On average, even taking into account the big crashs and dips, property on the whole will return you 15% on your investment. Therefore, the property which you’re buying now for 100k will be worth something around a million in 25years time as silly as it sounds.

Speak to anyone you know who bought a house 20 years ago, everyone will tell you they took out a 50k loan back then and the house is now worth 500k.

Thats my view anyway....
vibrio
Banned

Registered: 28th Feb 01
Location: POAH
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5th May 05 at 21:12   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by Bonus
Dont do the capitial repayment! Thats crazy.

Why tie up your capital? Whats the point of repaying the loan now? Sure, you have to repay it at the end, and the mortgage company are going to ask you what your repayment vechical will be. Quite simply, your way of repaying your mortgage is your property.

On average, even taking into account the big crashs and dips, property on the whole will return you 15% on your investment. Therefore, the property which you’re buying now for 100k will be worth something around a million in 25years time as silly as it sounds.

Speak to anyone you know who bought a house 20 years ago, everyone will tell you they took out a 50k loan back then and the house is now worth 500k.

Thats my view anyway....



point is that you still have to invest the money or save it over the 25 year period to pay off the loan. so long as you were going to put the capital into an account and not spend it then it makes sense to do this but how many people would actually do this.
Jamie
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Registered: 1st Apr 02
Location: Aberdeen
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5th May 05 at 21:16   View User's Profile U2U Member Reply With Quote

Corsa back yet?
3CorsaMeal
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Registered: 11th Apr 02
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5th May 05 at 22:27   View User's Profile U2U Member Reply With Quote

i gonna get a mortgage and build a house thru work and probably sell it on after living in it and maybe renting a couple of rooms out.

this is my plan, may not develop into anything

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