gianluigi
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Registered: 9th Mar 05
Location: Ipswich, Suffolk
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My dad pitched the idea to me, that since i don't want to take over his business, he sugessted that me and him buy a house, put my name on the mortgage (sp) and rent it out so i can get on the property ladder.
There's potential for this to be a good money maker but have to expect not to make any money in the 1st stages.
We were thinking perhaps buying a house in Norwich, near the uni and renting it out to the students, as there is always a market for this.
Thinking of a small 3 bedroom, convert another room into a bedroom, and get 4 students living there at £300 a month, thats £1200 a month, to cover all the costs. And then when it comes to selling it, hopefully the work me and my dad put into it, the house will raise in value and providing i have some good equity, i can make a few quid, and get another house (possibly bigger) and rent it out to a more (older/mature) market. then sell and make a few quid on that, and when it comes to me needing a house for my family or whatever, it will be much easier, because these days the news says young couples find it more and more difficult to get it onto the property ladder.
What you guys think? Has anyone done anything similar?
[Edited on 30-03-2006 by gianluigi]
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schoey
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Registered: 29th Jun 05
Location: Billinghay, Lincolnshire
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i think you should do it!
No opinion, just do it.
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MatthewR
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Registered: 21st Oct 02
Location: Rickmansworth
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DO IT!
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GREG 1
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Registered: 28th Jul 00
Location: Essex
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Yeah have thought about this but me and the gf are looking at moving out now.
Also what company does your dad own ?
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CCA
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Registered: 6th Dec 04
Location: Somewhere Drives: Not a bloody Vauxhall!
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Look into the price of local houses near the uni and find out how much a mortgage would be for you and your dad and how much the average rent is in that area then go for it.
Its a good investment for the future
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gianluigi
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Registered: 9th Mar 05
Location: Ipswich, Suffolk
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he owns a garage, doe's mot's services and repairs
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Jamie Walby
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Registered: 15th Nov 04
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Me and Dad have spoken about this so many times but we never get round to taking it any further.
It is a good idea Luigi, I think you should go for it 
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Edd
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Registered: 8th Nov 04
Location: Glasgow
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there is no money to be made in buying to let
remember you will be someones landlord also(could you really be arsed dealing with skanky students)
the arse fell out of this years ago
only real property developers make money imho
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Look into the finer details of it if I were you. This used to be a big thing years ago when house prices were rising loads, but they arent anymore.
There are new legal aspects coming in aswell to do with being a landlord. And dont forget the majority of upkeep you have to pay for, so ALWAYS keep a contingency account open with cash in it.
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gianluigi
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Registered: 9th Mar 05
Location: Ipswich, Suffolk
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quote:
Originally posted by Edd
there is no money to be made in buying to let
remember you will be someones landlord also(could you really be arsed dealing with skanky students)
the arse fell out of this years ago
only real property developers make money imho
your right, i wont be making money as its rented out, but shouldnt be losing money, but when it comes to selling it, it will have some money in it.
i dont have to be the landlord, i can get an agent in, or im sure my dad can help deal with the pikey students.
it is a money making idea, but its also an investment for my future, dont want to struggle in later life.
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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Its a good idea if theres a strong market for it .
BUT.
Itl take you 10 years to make any money/profit out of it
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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quote:
Originally posted by Jambo
Itl take you 10 years to make any money/profit out of it
true!
Especially with the insurance, mortgage costs, upkeep costs, agency costs, council tax costs, then the costs when you come to sell the house (which are due to go up under new house selling laws)
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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i have also thought about this. I would check on regulations for letting out tho. up here i am sure you are not allowed more than 2 people unless related
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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If you look at it another way, if you cant afford the house at the moment and the rent etc covers your rates and martgage payments then you are technically getting on the property ladder for free. The sooner you can get on itthe bettr.
Depends which angle you go at it from tbh
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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quote:
Originally posted by Edd
there is no money to be made in buying to let
imho
fair enough that is your opinion
however there is alot of money to be made, if you can get a house rent it out, you are basically getting a free house. It is a very good investment for later life
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Jamie Walby
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Registered: 15th Nov 04
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quote:
Originally posted by Edd
there is no money to be made in buying to let
remember you will be someones landlord also(could you really be arsed dealing with skanky students)
the arse fell out of this years ago
only real property developers make money imho
I disagree with that. One of Mums mates started off with one house which she rented out to the foreign language students, she now has 5 houses and her and her husband no longer have to work.
Having said that though, they have been doing it for a few years and maybe got on the gravy train early enough to make good money from their first few houses.......
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Edd
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Registered: 8th Nov 04
Location: Glasgow
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quote:
Originally posted by a_j_mair
quote:
Originally posted by Edd
there is no money to be made in buying to let
imho
fair enough that is your opinion
however there is alot of money to be made, if you can get a house rent it out, you are basically getting a free house. It is a very good investment for later life
ideally,but in this current financial climate you are playing a risky game
and in this world nothing comes for free
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Edd
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Registered: 8th Nov 04
Location: Glasgow
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quote:
Originally posted by Jamie Walby
quote:
Originally posted by Edd
there is no money to be made in buying to let
remember you will be someones landlord also(could you really be arsed dealing with skanky students)
the arse fell out of this years ago
only real property developers make money imho
I disagree with that. One of Mums mates started off with one house which she rented out to the foreign language students, she now has 5 houses and her and her husband no longer have to work.
Having said that though, they have been doing it for a few years and maybe got on the gravy train early enough to make good money from their first few houses.......
nail on the head, thats what im saying
it was a good thing a few years ago now its not such easy money
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Jamie Walby
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Registered: 15th Nov 04
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Maybe so. I think theres still money to be had out of it here in Bournemouth. I say this because theres a Uni, art institute, and Bournemouth is big for foriegn students.
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Tim
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Registered: 21st Apr 00
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Sorry but I just have to ask... how does 4 students at £200 a month make £1200 a month?
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schoey
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Registered: 29th Jun 05
Location: Billinghay, Lincolnshire
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 i just noticed that aswel!
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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maybe in Italy 4 x 200 = 1200 
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gianluigi
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Registered: 9th Mar 05
Location: Ipswich, Suffolk
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quote:
Originally posted by Tim
Sorry but I just have to ask... how does 4 students at £200 a month make £1200 a month?
omg 
just edited it
[Edited on 30-03-2006 by gianluigi]
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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is £300 a month each a realistic amount?
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gianluigi
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Registered: 9th Mar 05
Location: Ipswich, Suffolk
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quote:
Originally posted by Jambo
Its a good idea if theres a strong market for it .
BUT.
Itl take you 10 years to make any money/profit out of it
Im only 18, so for 10 years i could be renting the same house out to students, so by the time im 30 the making of money may be a lot more useful to me then than it is now.
but providing i put the work in and my dad helps me, even after 2 years, if the house goes up in value, i can sell it on, and could make some money.
But im just in the thinking stage of things atm lol
[Edited on 30-03-2006 by gianluigi]
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