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

Mini_Bear

OP i think that there will be continued drops in house prices in the south, until they reach a sensible affordable salary ratio. I think however in the north (particularly north-east) as house prices are already around these levels i dont think you will see substantial (20% falls).
I am also in a similar position as you and am looking to buy a family home for cash in the north as a long term investment - and potentially my future home.

socrates

Printer wrote: »

Is a btl mortgage usually more % than a standard?

OP - if you do not even have this basic concept I do not think you are even near being prepared to buy a property as an investment.

Do a LOT more research - and perhaps by that time the prices will have moved in your favour

Printer

I think that is a very narrow minded view. Not everyone is an expert. I am only looking at this property and asking questions. Thats all. Knowing a percentage on a mortage and recalculating the costs is not difficult. Probably the very start of the process...is it affordable. I may not even USE a mortgage and buy outright.....

Thanks for your help all.

socrates

Narrow minded - telling you that you should not spend 50k - in an investment that you do not fully understand.

Now I have heard it all!

Printer

That is not really what i was meaning.

I appreciate all of the advice given and know this is no game. Its a very easy way to lose a lot of money and you are right i need to do more research.

My question really was, where do i look to find the good deals and what percentage should i expect to pay if i put down a 50% deposit.

Thanks..and no offence socrates. I do appreciate your comments!!

I did a lot of research on this 1.5 to 2 yrs ago but realised the goal posts have moved. hence me reasking questions i researched 2 yrs ago.

socrates

Printer wrote: »

That is not really what i was meaning.

I appreciate all of the advice given and know this is no game. Its a very easy way to lose a lot of money and you are right i need to do more research.

My question really was, where do i look to find the good deals and what percentage should i expect to pay if i put down a 50% deposit.

Thanks..and no offence socrates. I do appreciate your comments!!

I did a lot of research on this 1.5 to 2 yrs ago but realised the goal posts have moved. hence me reasking questions i researched 2 yrs ago.

There are no good deals on BTL mortgages - YET - My advice would be as before, sit down with a financial/mortgage adviser - do all the calculations - if at the end of it you can set a price where you get nearly 10% yield , then make a cash offer - and stick to that offer - not many cash buyers about.

Printer

Ok thanks. I agree and i have a meeting this afternoon. I think the cash offer is the way to go too...much more muscle with it.

Thanks!

socrates

Good luck my man!

Printer

Hi All!

Thanks for the help so far. I've done some research into this and in principle i can have a mortgage.
I pretty much know what i need to do in terms in legal terms.(i think)

Ok my next point is that letting agencies seem to charge a ton of cash for a service. Some are offering me much better services than others.

The first trick to me is to have a long term tennant (which is what i intend) so you are not paying the new tennant charges every six months, just have the monthly percentage as a cost reducing the overall cost over the years.

So, are there any tricks to saving some money in this area or am i just going to have to bite the bullit and pay up!?

Thanks all.

m_13

If you buy on a 50% mortgage then that is all the interest you can claim against your profit. You can't claim the interest you've lost on the savings.

If you start with £350 rent and pay 10% to the agent each month for a full lettings service (based on the fact you say you don't live nearby) then your income is £315. That is £3780 per annum. As geoffky says you will need to pay for:

• Gas inspection
• Gas annual servicing
• Buildings insurance
• Electricity certificate (including PAT testing is you supply any portable applicances under 19kg such as kettles)

If you say a minimum of £500 per annum for those then your income has dropped to £3280 per annum - £273 per month if it is let for 12 months of the year. How much is your mortgage payment going to be? BTL mortgages are typically higher interest rates.