want to buy an nvestment property to rent out but can't cover rent

macca

OK - our house isn't yet ready to sell but we would like to buy a house in .the area we want to move to now - whilst prices are still reasonable. We would then want to rent this house out until we sell ours and move in. We can get together the 25% deposit that a buy to let mortgage would demand but still don't meet the criteria for the mortgage as the rent wouldn't cover the mortgage payments. We're happy enough about this we can afford the extra bit each month, just can't afford another £75K to put down as a deposit.
Is there a way around this?
Thanks
Macca

poppysarah

Why can't you quickly sell your house?

macca

because it's a large unusual house and needs some work to make it market ready.

mlz1413

I'm not sure I follow your train of thought so let me recap what I think you are asking: you have a house that you live in that you wish to sell but want to do some work on before selling.

You also want to buy a B2L that in the future you will move into but mean while you want to rent it out as an ordinary B2L.

You have the 25% deposit for a B2L but do not meet the mortgage criteria for the B2L and so cannot buy it.

If the above is right could you not just live in your home until its ready to sell and then buy what you want? I know you would like to buy low and sell high, but it seems a lot of hassel for ultimately a few thousand pounds which if you get a bad tenant would be completely wiped out.

pie81

macca wrote: »

OK - our house isn't yet ready to sell but we would like to buy a house in .the area we want to move to now - whilst prices are still reasonable.

very few market commentators are predicting much of a rise in property prices over the short to medium term - most are predicting flat or decreasing prices. So unless you think there is likely to be a spike in your chosen area prices for some reason, I don't think you necessarily need to buy now "while prices are still reasonable".

ManicMum

Hi there

just stay put until you are ready to move. Remember if prices go up in your desired area, prices will go up in yours too. It follows on. You could get into a financial mess if you couldn't get tenants or couldn't sell etc. Plus will be stress and headache for you.

chucknorris

ManicMum wrote: »

Hi there

just stay put until you are ready to move. Remember if prices go up in your desired area, prices will go up in yours too. It follows on. You could get into a financial mess if you couldn't get tenants or couldn't sell etc. Plus will be stress and headache for you.

To the OP the above is good advice, why the rush, nothing is happening fast to property prices and being a landlord is not easy (I have been one since 1991, it can be a real pain at times and that is with 18 years experience, as a newbie it will be much worse)

A_Nice_Englishman

Instead of starting a loss-making property rental business and subsidising your tenant's housing I would suggest keeping the money yourselves and putting it towards a nicer property when the time comes.

macca

A_Nice_Englishman wrote: »

Instead of starting a loss-making property rental business and subsidising your tenant's housing I would suggest keeping the money yourselves and putting it towards a nicer property when the time comes.

,

that doesn't quite work for me as ultimately we need to buy in this specific area, and there aren't any nicer houses they are all of the same category - 1930's detached, there's only a 10K difference between the v nice ones and the nice ones.

I hear what you're all saying, its just that I know our house will take months if not a year to sell and the area we want to move to, holds its price (usually) and sells quite quickly, also rents v easily as well. Just thought it might be an idea to get our money working for us in a different way. Hmmmm so no ways around this is what you all seem to be saying in your own different ways?

PasturesNew

It's not your money though is it, it's debt.
Debt and risk.
Debt and risk - in the hands of an unknown stranger.
Your debt, your risk.
Strangers .... effectively in charge of your future security and happiness.

PasturesNew

I should write horror thrillers I think....