First Time Buyer paying cash

allacrossthesand

Firstly I know very little about the process of buying a house etc and will be reading up on the info on this site and having a general google, as well as talking to family and friends for advice. However I think my situation is slightly different to the norm.

I won't be buying using a mortgage. Due to various reasons I've gone from renting to predominantly working abroad. I now have enough to buy a city centre flat. Initially I will live in it for a few months then I'll look to rent it out for the year while I'm working away. Is there any advice for cash buying and also buying a flat you intend to rent?

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How should I play dealing with the estate agents and sellers? If I tell the estate agent I have £x to spend will they let the seller know this and encourage them to push for a higher price if my offer is below the asking price and my full budget.

I guess my lack of chain will be advantage is this further aided by the process being sped up by the no mortgage situation?


Thanks

Running_Horse

If you're planning to let it out, ask esatae agents what rents well in your area. I wouldn't buy a city centre flat, especially a new build. Some agents are funny about demanding proof of finance, but what you are willing to pay is entirely up to you. They may want to make the vendor feel good about getting a couple of grand extra, but will not want to jeopardise the sale and their commission.

allacrossthesand

Thanks Running horse. I've started comapring the prices of buying and renting in the area. By proof of funds do they just want a statements showing the savings I presume?

G_M

There are 2 areas you need to learn about:
renting and buying.

For the former, talk to several letting agents (not always the same as estate agents), preferably ARLA members, about types /locations of properties that rent well, and about likely rental income.
Then do a budget. Monthly rental income x 10, - agents fees, running costs, tax, insurance........
Read Tessa's book, look at landlordzone and join RLA.

For the latter, yes, no mortgage and no chain makes a strong bargaining position so stress it. Never divulge your budget, just convince agents you have funds available. Look at properties you like/can rent not just properties at the limit of your budget!
For the process, look at home or the CAB, or use google.

If you are intelligent and feel brave, you can even do your own conveyancing and cut out the solicitor's fees - though Timmy (guess what he does for a living?) will be along soon to tell you I'm mad!

Thrugelmir

Are you looking to buy a property to make a home or buy a property to rent out?

It does make a difference as to which properties you should consider buying.

cat10_2

Also if you are planning to rent out the property furnished it should be decorated/furnished in a way that will attract tenants.

The property should have neutral coloured walls and standard furnishings and should not contain any of your personal items.