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Can I possibly buy 2 properties???
Comments
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How about converting your current house into 2 one bed flats?
Rob.0 -
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i would try if you can to live in a one bed and get the 2 bed as the rental/investment. it depends how you are going to buy both of them, are you mortgaging one and buying the other mortgage free? are you moving to a cheaper area of the country to do it?
my plan is to move out of london, sell my flat, buy another to live in (2 bed) with the same mortgage i have now (paid off in 15 years), then with the equity i get out of my current place, buy another 2 bed, mortgage free and just rent it out for 30 years till i retire (or decide to get rid of it if i change my mind), therefore im not worried about prices going down, up or whatever, no mortgage on it means i can charge a lower rent if i need to and not worry, in 15 years, my mortgage on the flat i'll be living in will be paid off too so those mortgagge payments can go into savings. BUT i can only do this by moving somewhere cheaper and by buying the rental flat to do up or modernise.0 -
Very constructive squatnow.
Someone asks for advice and gets the reply "you are stupid".
House prices are only one factor. If you have enough for a decent deposit, don't have all your money in property, the rents cover the mortgage payments (with rising rents this is the case in many areas), it doesn't matter. If you can hold onto it and want it as an investment for generating future income in retirement (rather than speculating on the price), it doesn't matter one bit what the house "value" is. You might plan to never sell it and only be in it for the income.
As part of your retirement portfolio, it could still be a good thing (see above posts), just don't over expose yourself.
What's right for one person isn't right for another.
Your point of view only takes into account the value of the house when buying and selling and is quite blinkered. For those not looking to ever sell, it's fine as long as the numbers add up.
i agree, someone like me is looking to buy another flat for my pension but i dont retire for 30 years, in that time, i will have a rental income (low or otherwise) to put into savings, i wont have a mortgage on the rental flat, only on my own flat, so i dont have to worry about prices going down or covering a mortgage. each persons plans and needs are completely individual. if the person doesnt aquire debt to do it, or put themselves in a situation they cant afford, i think property is (over 20years or so) a good idea. my view is also that at the end of the day, i will always need somewhere to live, so whatever happens, i'll have a roof over my head0 -
Why? House prices have dropped, rents have gone up a lot (less people being able to buy, more people stepping off the ladder). If the rent covers the mortgage, you can afford the mortgage while the house is empty, you have the money for a deposit and can afford to stay in it for the long term, it may well be worth doing. Buy to let could be a good investment for those that have the cash and can afford to sit tight, especially with rents being as high as they are.
It really depends on your situation. If you want to do this short term, don't have much money for a good deposit etc. BTL would be a terrible idea.
Because houses are an asset, & that asset class is now going through a rerating.
Why buy asset X today for £1, if tomorrow you'll be able to buy 2X's for the same money.
At some point houses will be affordable & a better way to spend your money than renting at which time the number of renters will begin to reduce, so I wouldn't buy now at what will be an overpriced value because the rent covers the mortgage.
At some point it won't AND the asset will be worth less to boot.0 -
Also worth pointing out that ARLA the Association of Residential Lettings Agents none-the-less say rents have dropped 7-9% in the last 12 months. yes that's DROPPED NOT RISEN!!!Very constructive squatnow.
Someone asks for advice and gets the reply "you are stupid".
I calls 'em as I sees 'em.House prices are only one factor. If you have enough for a decent deposit, don't have all your money in property, the rents cover the mortgage payments (with rising rents this is the case in many areas), it doesn't matter. If you can hold onto it and want it as an investment for generating future income in retirement (rather than speculating on the price), it doesn't matter one bit what the house "value" is. You might plan to never sell it and only be in it for the income.
No wait... YOU'RE stupid! I hereby appologise to the OP, who by comparison is Albert Einstein.
A couple of points... firstly it's not possible to INVEST using borrowed money... "Investing" using borrowed money is merely speculation. You can only invest owned money.
Secondly house prices are THE ONLY factor. Even if the OP never sells the place, his ability to get a good mortgage deal depends on the houses value. In addition any BTL loan would be a commercial loan on commercial terms with commercial LTV rules.
On top of that, his rental income would be dependant on prices too... if prices dropped 50% he would have to compete against the option for possible renters to buy, and more importantly he would have to compete against landlords that had bought after the crash who could undercut his asking rent by 50% bankrupting him.
There are a whole raft of other reasons, but basically, BTL wont stack up again financially until prices have droped 50%.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Also worth pointing out that ARLA the Association of Residential Lettings Agents none-the-less say rents have dropped 7-9% in the last 12 months. yes that's DROPPED NOT RISEN!!!
ARLA seems to be heavily weighted to London and the South East
when you read their report http://www.arla.co.uk/news/0906ARLAMembersSurvey1.pdf
It also says (page 31): -All regions
These figures tend to suggest that, on average, achievable rent levels have increased significantly over the past 6 months
Prime Central London
It would appear from these figures thay, on average, achievable rent levels in Prime Central London have increased quite significantly over the past six months
Rest of the South East (page 32)
These figures tend to suggest that rent levels in the South East have also increased significantly over the last six months
Rest of the UK (page 32)
As with the other geographical areas, it appears from these figures that the achievable rent levels in the rest of the UK have increased significantly over the last six months
It does also say on page 34 that the percentage of members reporting achievable rents has increased has lowered for London and the South East (6-8%), but risen for the Rest of the UK (5%)
So the facts are about this little growing myth is that the percentage of achievable rents received is higher but the percentage of those reporting achievable higher rents are lower:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »ARLA seems to be heavily weighted to London and the South East
when you read their report http://www.arla.co.uk/news/0906ARLAMembersSurvey1.pdf
That is because London and the SE is the area where ARLA say they had the most ARLA member offices responding. 6 out the 10 members responding came from London and the SE. (4.1 page 7).
ARLAs report showed that for the last three months Scotland Wales and NI always have the lowest response for their results into rental prices, with those 3 countries together making just a total of 4.7% of the responses in May.
It appears therefore, that some ARLA members preferred not to respond to how badly rents were doing in their areas. If they were rising, I am sure they would have been delighted to have reported that to to ARLA.
This reminds me of when some dog breed societies wanted to find out how bad Hip Dysplasia was in certain breeds of dogs. They discovered that incidents of HD were higher in the countries where they had carried out a higher number of xrays for HD.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
It also seems that the capital asset value of rented houses has fallen. The breakdown for the last three months, according to the ARLA (The Association of Residential Letting Agents) report is:-
Fallen by 2.4% in prime central London.
Fallen by 1% the rest of the South
Fallen by 5.1% the rest of the UK.
Taken from Page 5 (3 Summary)
http://www.arla.co.uk/news/0906ARLAMembersSurvey1.pdfRENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
MissMoneypenny wrote: »That is because London and the SE is the area where ARLA say they had the most ARLA member offices responding. 6 out the 10 members responding came from London and the SE. (4.1 page 7).
That's fine as long as people understand this.
from above it would seem that they hae benched 40% of responses together as "The Rest of the UK"MissMoneypenny wrote: »It appears therefore, that some ARLA members preferred not to respond to how badly rents were doing in their areas. If they were rising, I am sure they would have been delighted to have reported that to to ARLA.
Is this another one of your assumptions?
I'm not an ARLA member and my rents increased in the last year by 22% and 14%
P.S. you must have missed in the report and my post that the ARLA have said on page 31 and 32 that achievable rent is up all over the UK. The only thing I saw down with regards to rents was the percentage of members showing an increase in rents:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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