Am I mad or what?

Funkster

Hi ya'll

Its been a long time since I last posted on here, for various reasons. Anyway, long story short.....split from wife, sold house, made redundant, new job, renting, money in bank etc. Anyways, i have a plan, a vision if you will, to help further push my life in a more positive direction.

I have a potential 2bed repo flat to buy. I have 30% to put down on the flat. My intentions are to get back on the property ladder, the flat is cheap, mortgage reasonable and I have money to invest in it. This flat will be for me to rent out because I also plan to quit work and travel the world for 6 months to a year, thus leaving me unemployed when I return. I would be letting the flat out during this time so that I have a place to come back to should I choose to. The other reason is as an investment opportunity that I feel is too good to be missed.

I have done some calculating/budgeting but am convinced I'm missing vital info hence the reason for writing on here. I have money set aside to refurb the property.
The rent covers the mortgage and agency management fees leaving about £80 extra, which will go into the property account. FYi - I intend finishing work at the end of the year.

So, am I mad or what?
Do you think I should register myself as a company?

Please people, curb my enthusiasm and bring me back to reality.....or am I being sensible (if slightly risky)?

Ta muchly
Funkster

Debt_Free_Chick

Funkster wrote: »

The rent covers the mortgage and agency management fees leaving about £80 extra, which will go into the property account. FYi - I intend finishing work at the end of the year.

Assuming you get the rent you want. In many areas, there's a glut of rentals and tenants are negotiating discounts. Also, you have no budget for voids or "done a runner". £80 per month is not a lot for redecoration in between lets and routine maintenance.

Who is going to manage the letting whilst you're away - budget for that?

LL's insurance - your budget for that?

So, am I mad or what?
Do you think I should register myself as a company?

I'm not qualified to have you certified but it does appear that you've not done all the research.

Can't see why registering "yourself" as a company would make any difference - or have I missed something?

Have you been on Landlordzone?

Funkster

To be honest I'm doing all the researching as we speak, hence posting on here. And yes, I probably am mad! This wasn't part of my original plan, more trying to grab an opportunity. But anyway, I do have extra money available for redecorating inbetween lets and yes I have budgeted for agency fees. I have 3 varying quotes regarding insurance too, so much will depend on what I get for my money.
But.......maybe its just my cautious mind but I do feel I'm missing someting (please, no quips about marbles!). Thanks for the link.....no, I hadn't been there.

f

krazykidskate

You should keep your cash in the bank, incase you decide to settle in another country, or decide to travel for longer or meet someone....etc Why burden yourself with the worry of being a landlord when you can just enjoy your new found freedom and do your travelling without a care.

Funkster

That is exactly whats been on my mind, Kate. The problem is is that I seem obsessed by this 'I have to own a property' mindset and as this property has come up for grabs I thought it was too good an opportunity to miss. I kinda feel that if I bought it, refurbed it (which would be done on the cheap as I work within the buildings tools n fixings trade plus have members of the family (plumbers, roofer, builders) offering to do any work) I think I could sell it for quite a bit more. But then, you never know.

f

socrates

Funkster wrote: »

That is exactly whats been on my mind, Kate. The problem is is that I seem obsessed by this 'I have to own a property' mindset and as this property has come up for grabs I thought it was too good an opportunity to miss. I kinda feel that if I bought it, refurbed it (which would be done on the cheap as I work within the buildings tools n fixings trade plus have members of the family (plumbers, roofer, builders) offering to do any work) I think I could sell it for quite a bit more. But then, you never know.

f

Why not buy it fix it up and flip it