Should i buy or not??? ARGGHH!!!!

Printer

Hi,

i've been keeping my eye on the market for a while and i've found a house that i may want to purchase as an investment.Its in my home town and i work in the south. Its a reposesion and a pretty good price i feel. Now i will offer less obviously. Anyway, my question really is;

1) are prices going to go down further (how much %)?
2) how much less should i offer (%)?

I'm sure these two questions are being discussed elsewhere and i'm sorry to repeat but i just want to know some peoples opinions.

Thanks all....

P.S. i can essentially put down a 50% deposit and i want to rent it out. Its a 3 bed house.

socrates

What is the yield - most investors are only looking at repos producing a 10% or thereabouts return. That is after taking into account all the expenses involved.

Treat it as a business.

Have you looked into BTL mortgages and the arrangement fees - can your income sustain the payments during void times.

Plus loads of other questions

Printer

Not looked yet. Going to discuss this with the lady giving me the viewing. I did look into BTL mortgages 1.5 yrs ago but lost touch.

Yes i can afford to keep the payments up.Should not be a problem. I have enough money to technically buy the house outright but want to spend a little amount on it there for leaving me with 90% of the total. If i borrow 50% mortgage its a low cost mortgage...

socrates

1.5 years ago is a long time in the current market - what is the purchase price and what is the realistic rent?

Printer

Purchase price 50k..

possible rental £350 per month if i want to let easily...my mate rents one in next street which is a 2 bed flat for £290....

socrates

Speak to a financial adviser and let them do the math - seems ok ish.

If you are a cash buyer why not offer £40k for a quick sale

Printer

Thats what i'm thinking. Problem is got 20k now and 30k released from savings in april......i can get it released early but will take a week or so....

geoffky

for the small amounts involved....is it worth the hassle you will get?

Printer

How do you mean worth the hassle? Of releasing money or of asking to buy for less?

Is a btl mortgage usually more % than a standard?

what other things do i consider?

Thanks for help so far all!

geoffky

printer... i mean hassle as in ...voids...breakages... non payments....gas certificates..electricity certificates....house possibly used as a dope den ect ect...getting btl insurance..btl mortgage...getting the placed trashed....deposit hassles...the list goes on...

you need to do this with your eyes wide open ...and yes btl mortgage is a commercial mortgage

Printer

Yes, i agree this is not something to be taken lightly. At the end of the day if this thing can pay for itself then i am happy with that. I feel that my money is better off in property than in the banks these days and ido feel property value will go up.May be 10 to 15 years but it will go up. At the end of the day no houses are being built and people need somewhere to live.

But thanks for the advice and i am taking this seriously. Everyone has to start somewhere.!!!

I think the market may go down slightly further but not sure how far and the region i'm looking at is already relatively cheap now.

I work in the south and i'm told my job is safe.We are very busy, and i just cant keep putting money in the bank. Problem is in south this kind of house would cost me 200k....I'd rather rent in south and get my foot on ladder in north....as this is where i want to ultimately retire...