An idea - buy a house for myself and other grads

mynameisdave

Lokolo wrote: »

Yep looked that up, been looking at the allowable expenses and that would cut the income tax down by quite a lot. The only one I wasn't sure about was bills, whether it would be 100% I could use, or 2/3rds. But as I say, I wasn't going to explore the definates til I heard others opinion

I'd double check things like allowances. LL's get mortgage interest for tenanted properties but these may not apply to you if you are living in the property too. It might, depending on whether you give tenancy contracts and what part of the property are shared but if you are all sharing a kitchen, living room, bathrom etc I cant see you getting tax relief allowance on mortgage or part thereof. The same would apply for council tax, insurance and other such things afforded to LL's

It sounds as if you plan to be an owner occupier with lodgers. Not a landlord.

Edit: I've reread your first post and it definately seems you are including things as allowable expenses that you would not be entitled to if you were living in the property.

kmmr

Lokolo wrote: »

Who?

And yeh I agree it would be a little more effort, but I don't particularly want to be paying out rent of £450 a month and get nothing in return by renting for 5 years or however long.

kirstie is a tv presenter, but ignore the comment!

if you research it and can get the mortgage, and can cover it yourself if needed during void periods then its a good idea. Wanting to do something with your money at a young age should be encouraged i think!

just make sure you get a place in the right location for sharing, and reference check the tenants well.

good luck!

neverdespairgirl

A £150k place, with £20k deposit, would require a mortgage of £130k, which is 4.8 times your income of £27k.

A £175k place would need a mortgage of £155k, which is 5.7 times your income.

And you'd only have a 13.3% or 11.7% deposit.

I think you're most unlikely to find anyone offering you a mortgage with those figures.

Running_Horse

kmmr wrote: »

but ignore the comment!

if you research it and can get the mortgage, and can cover it yourself if needed during void periods then its a good idea. Wanting to do something with your money at a young age should be encouraged i think!

No. Don't ignore the comment. This is terrible advice for someone in your sitaution. You are young and should be enjoying yourself, not getting tied down to a potentially disastrous financial investment that could see you stuck in a town just when you are most likely to need flexibility and mobility.

Especially as you admit it was a passing fancy:

Lokolo wrote: »

OK so I had a thought earlier.

Right now you are a student, so act like one and have some fun with your life.

jockosjungle

Got to agree, your youth is for living my friend!

You should be going out, having fun, taking a holiday, etc. I had a friend who did something similar to you, got a 3 bed and took in two lodgers, his social life was coming down to the pub once a week and drinking 1 pint of beer during a pub quiz, he couldn't afford to do anything else. He couldn't afford to come to Leeds Festival with us, a day trip to Alton towers, etc.

Yes he had a property (which he sold eventually making no gain to go be a student) and was on the ladder (as he frequently told us) but at the same time has no life

R

Lokolo

Running_Horse wrote: »

No. Don't ignore the comment. This is terrible advice for someone in your sitaution. You are young and should be enjoying yourself, not getting tied down to a potentially disastrous financial investment that could see you stuck in a town just when you are most likely to need flexibility and mobility.

Especially as you admit it was a passing fancy:
Right now you are a student, so act like one and have some fun with your life.

Thats a lot of speculation. Not sure why I'd need flexibility and mobility. But nonetheless I'll take it onboard. And trust me, I have fun

I just don't see why I should bother paying £350 a month in rent, whilst sharing with others, whilst the LL profits from us, when I could be, which is where the thought came from.

Lokolo

neverdespairgirl wrote: »

A £150k place, with £20k deposit, would require a mortgage of £130k, which is 4.8 times your income of £27k.

A £175k place would need a mortgage of £155k, which is 5.7 times your income.

And you'd only have a 13.3% or 11.7% deposit.

I think you're most unlikely to find anyone offering you a mortgage with those figures.

Thanks. I can get a bigger deposit if need be (I can get an extra £15k, on top of the £25k I could have if I save some extras), giving me a total deposit of £40k. But £15k would be borrowed and need to be paid back....

I did just browse HSBC who would if I had the total £40k, not the £25k though (although the borrowing was upto, rather than definite on those figures)

Lokolo

jockosjungle wrote: »

Got to agree, your youth is for living my friend!

You should be going out, having fun, taking a holiday, etc. I had a friend who did something similar to you, got a 3 bed and took in two lodgers, his social life was coming down to the pub once a week and drinking 1 pint of beer during a pub quiz, he couldn't afford to do anything else. He couldn't afford to come to Leeds Festival with us, a day trip to Alton towers, etc.

Yes he had a property (which he sold eventually making no gain to go be a student) and was on the ladder (as he frequently told us) but at the same time has no life

R

As said earlier, it was an idea and I would only go into the specifics of working out finance if others thought it would be a good idea. I wouldn't get the house if I wouldn't be able to have my £100 a week drink money. :cool:

neverdespairgirl

Lokolo wrote: »

Thanks. I can get a bigger deposit if need be (I can get an extra £15k, on top of the £25k I could have if I save some extras), giving me a total deposit of £40k. But £15k would be borrowed and need to be paid back....

I did just browse HSBC who would if I had the total £40k, not the £25k though (although the borrowing was upto, rather than definite on those figures)

They won't usually take borrowed deposits, or if they do, they'll knock it off the mortgage total amount.

Lokolo

neverdespairgirl wrote: »

They won't usually take borrowed deposits, or if they do, they'll knock it off the mortgage total amount.

Borrowed from a friend, not in the form of a proper loan or anything.

Me and the guy both have a lot of money between us (he has more than me ha)