DYL
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Registered: 19th May 06
Location: CAERNARFON
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Im thinking of buying a "repossesd" house. It's an ex council house, to Let.
Theres just over £40k left on the mortgage.
The plan is, to buy the property and put it for Let. could easily get £400 per month on the property. Which will pay for the mortgage off easily.
Good or bad idea.... How hard is it to get a mortgage etc?
 
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Good idea. Investment for the future. If the housing market is shit, you have free digs essentially, and if it's good, you can sell up and have lots of equity.
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DYL
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Registered: 19th May 06
Location: CAERNARFON
User status: Offline
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the deposit is the only problem, they want 15% deposit,
Working for the council for the housing dept is ideal  .
I'm looking for the best deal atm......im thinking of "letting" it for "dolies". That way i will get the rent money with no problem, or the other option is Students......which is a risk
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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The house WILL end up a shitehole.
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Andrew
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Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
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quote:
Originally posted by pow
The house WILL end up a shitehole.
Students is a big no no  I know what we were like when students..
You cannot judge everyone on benefits to be fair. There are genuine cases and some sound people.
I've been looking at terist houses as there are a few going cheap near me. I'm not to impressed with parking on a street though so could buy one to let off.
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BlueCorsa
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Registered: 14th Jan 04
Location: Midlands Drives: MB SLK250 CDI
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If it's a repo and ex-council then it's probably already a shithole, so students or benefit scum won't make too much of a difference to it.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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The woman that is in my dad's business house isn't a student, and that is wrecked.
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luke85
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Registered: 26th Nov 07
Location: Chesterfield
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Have you been looking at the figures for house prices recently? by December house prices will have fallen by 15% on the same time last year and the crash is going to carry on for at least another 18 months IMO.
Buying a house now is a very silly thing to do unless you get it for (at least) 30% less that it was worth last time this year
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luke85
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Registered: 26th Nov 07
Location: Chesterfield
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Since febuary this year house prices have fallen by an average of 2% per month, and its only going to get faster
Halifax House price stats
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Im doubting it will continue to fall for another 18months but it probably will do for the rest of this year.
You have to remember though that buying to rent is not just about the short term. If he is looking for a 5-10yr investment then buying now is better than doing so in the previous 2 or 3yrs. Both because the house prices will be cheaper, and because the number of people who cant get mortgages has massively risen in the last 6 months.
If he can get the mortgage, and can take the risk of having to fill it with a tennant for 90% of the time then it wont be a bad buy in the long run.
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J da Silva
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Registered: 10th Apr 03
Location: The FACTory
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If there's an investment opportunity and your guarenteed profit or atleast you know that your tennant will be paying the mortgage then go for it, if you wait around, opportunities exit.
I've been buying and renting out houses for the last 4 years and so many people need to rent at this time it's untrue.
Two important things you should remember....
1. Buy to rent is a better option when house prices are high, your tennant pays the mortgage and when you want to sell you make whatever the house is worth, all that cash in your pocket, then invest half the amount into a new project, and it escalates.
2. When you buy to rent, try and aquire a property that accomodates allsorts of people, don't go buying a massive 5 bedroom property as your only aiming at a big family and who'd rent a big place anyway?
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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quote:
Originally posted by J da Silva
2. When you buy to rent, try and aquire a property that accomodates allsorts of people, don't go buying a massive 5 bedroom property as your only aiming at a big family and who'd rent a big place anyway?
I don't understand this one. There is places around our way where rent is like £1200. If you can afford to pay rent at that rate, why not get a mortgage and actually have an investment.
Dad says it's people here on business, with companies paying the rent etc. He's probably right, but still
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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quote:
Originally posted by deano87
I don't understand this one. There is places around our way where rent is like £1200. If you can afford to pay rent at that rate, why not get a mortgage and actually have an investment.
Dad says it's people here on business, with companies paying the rent etc. He's probably right, but still
Loads of reasons - some people have the monthly income but not the deposit required to get a mortgage. Some people have bad credit history and cant get the mortgage but a good income now. Some people dont want to buy why the market is how it is. Some people arent staying in the area for all that long so dont buy, etc. etc. etc.
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J da Silva
Member
Registered: 10th Apr 03
Location: The FACTory
User status: Offline
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quote:
Originally posted by deano87
quote:
Originally posted by J da Silva
2. When you buy to rent, try and aquire a property that accomodates allsorts of people, don't go buying a massive 5 bedroom property as your only aiming at a big family and who'd rent a big place anyway?
I don't understand this one. There is places around our way where rent is like £1200. If you can afford to pay rent at that rate, why not get a mortgage and actually have an investment.
Dad says it's people here on business, with companies paying the rent etc. He's probably right, but still
Right say if you have a 5 bedroom house, you want to rent it out, who are you aiming at? plus the amount you'd be paying out would make people want to buy it off you rather than rent it.
If you have a 2/3 bedroomed house, your aiming at a single mum with kids, students, a young family who can't get a mortgage, a divorcee who's just wanting something till they find their feet, a group of friends who want to live together and 'live it up'.
It's more profitable doing the latter if you plan to maket a long term investment, but rather than have 1 property you'd be better of having as many as you can get providing you have the financial muscle to cope, because in simple terms, your paying 'anything' providing your tennants are paying up, if not.... well that's a seperate issue altogether and I've not got a tin opener for them Heinz Worms.
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