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looking at buying a property to rent out !
only1-mike
Posts: 19 Forumite
im currently looking at buying a 3 bed house to rent out , ive seen a property that requires modernisation (my dads a builder so this isnt a problem) the property is 57k ( i will offer lower) and ive got a 25k deposit, in the area and for the type of property the rental income is around £450-550 . i have a job so the months which i dont have it tenanted i can pay the mortgage any advice or comments will be appreciated
thanks
thanks
0
Comments
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Sounds like a good deal to me IMHO.
How much is the renovation going to cost and most importantly how much will the property be worth after the that. Try to be pessimistic in the value after the work is done.
Going by the purchase price of £55k with 85% LTV the mortgage would be £46750 hence deposit would be £8250. With a nominal interest rate of 6% the monthly interest only payments would be £233.75 per calender month.
Obviously you have the buying cost and letting fees and tax from profits to work out. Important thing is how much will it cost to renovate and how long it will take to do as well as how long it will take to rent out.
Another important factor is how long will you be renting it out for and what you end goal, i.e. whether to keep renting
it out to sell in say 5 years time.
Best of luck and all the best in your venture>Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!
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Only quick comments are you will need some money for the materials even if you don't expect to pay your dad. You might be better going to a bank for a loan rather than getting a BTL mortgage, as a number of BTL mortgages have minimum values, both of the loan and the property.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
well ive got 25k for the deposit and about 5k spare the house just needs new kitchen bathroom and rest of house just needs a coat of paint and garden are quite overgrown but thats all things me and my dad will be able to sort my plan is to keep it for atleast 10 years which if pay £250 a month should be able to repay the loan or mortgage which in that time the property should have gone up in value , current value of of homes on the road are around 65-75k as i checked net house prices
my real goal is to own the property outright in 10 years which i think is a realstic goal ?0 -
A 3 bed house in the UK for 57k?! Mind if I ask which area?"The happiest of people don't necessarily have the
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --0 -
If I found a property like that I would go for it even in todays climate.....
The choice is entirely yours....
Good LuckDebt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0 -
its in warrington there are a couple that im goin too view its about 20 minutes from where i live in sale but the house prices are a lot different go on the right move website and look at warrington
cheers for all the positive replies0 -
Go on and Snap it up! Good Luck!Everything that is supposed to be in heaven is already here on earth.
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only1-mike wrote:...
my real goal is to own the property outright in 10 years which i think is a realstic goal ?
You need to be disciplined to make the extra payments or see whether someone will do you a 10 year loan. If you can cover it from your income then you could do it that way.
I think the figures just about stack up. I don't know if I'd do it if I had the £25-30k. I am concerned about the rent figure you quoted as I think it may be on the high side.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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