Quick advise please

Mrs_pbradley936

Well goldbyron is right if you have already exchanged you cannot back out now without causing yourself very serious problems. So forget all about building on the side of this place. One of my sons is living back with us and renting out his one bed flat. His mortgage is well covered by the rent and living here means no bills an all his washing and ironing done!

lynzpower

Redknapp wrote:

lynzpower: not sure what you mean, clue less when it comes to all this im afraid

I'd say it would cost me £100/£150 on top of any rent earnt to cover my mortgage. Though my mortgage is very high due to being self cert + no redemption.

goldbyron: Exchange looks like it will be this week.

pbradley936: Thanks for looking much appreciated.

Right brief story. I'm 27 only bought the house to make some money tbh. Live with my mum at present (yes I know) but spend most of the time round my girlfriends. I work for myself (done most of the work on my house). Don't really want to live on my own or with the girlfriend at present (complicates things). I like you idea about getting a flat to rent that makes sense and was something I had not considering. The only other thing that gives me doubt about selling my house is it has enough room at the side for an extension (hence the £260k price tag) so I could always come back to it later and build on it when I am more experienced.

Just want to secure myself for the future and put my money to good use whether its a house or by another means. Maybe I should look into how much I could earn out of high interest bank accounts? I am very good with my money though some people even call me tight

Hey im pretty tight myself these days

What I was meaning is, add up what its costs you per month to run that house, including all your insurances and what not

Then find out how much it costs to rent

then add the difference plus your "profit" in a bank account. the average for instant access is about 5%

If you look on the savings board, I asked about calculators earlier today, so they might be worth a nose.

Redknapp

pbradley936 wrote:

Well goldbyron is right if you have already exchanged you cannot back out now without causing yourself very serious problems. So forget all about building on the side of this place. One of my sons is living back with us and renting out his one bed flat. His mortgage is well covered by the rent and living here means no bills an all his washing and ironing done!

Have nothing back from the buyers side yet, but your idea does sound good and seems the best way to go.


Thanks again.

Redknapp

lynzpower wrote:

Hey im pretty tight myself these days

What I was meaning is, add up what its costs you per month to run that house, including all your insurances and what not

Then find out how much it costs to rent

then add the difference plus your "profit" in a bank account. the average for instant access is about 5%

If you look on the savings board, I asked about calculators earlier today, so they might be worth a nose.

Cheers. I'd say with insurance etc inc, i'd lose atleast £200 a month though I would change the mortgage.

Saying that pbradley936 idea does sound good as mentioned.

clutton_2

dont forget Capital GAins TAx

Mrs_pbradley936

If you are considering getting a flat to rent out an agent will charge you about £60 per month but if you decide to do without an agent you may find it hard to get someone credit checked. It is possible but it means joining an association which is not worth it for one property. You will also have to declare it for income tax but you would not have to under the rent a room scheme (that means you live there but have a lodger). If you are going to furnish it and I would (more money, easier to let) you have to provide a bed, a table and chairs, a sofa. Any thing that has padding has to have fire labels in place. All new furniture come with them bust most people rip them off. I would buy all the furniture second hand, you can get some real bargains from couples splitting up.

My son rents his place out for £580 per month and there is a 80k interest only mortgage on that.

Redknapp

Nice one, will look in to it all. Thanks.

Redknapp

clutton wrote:

dont forget Capital GAins TAx

That's 40% is it not?

lynzpower

I didnt mean to rent the house out I mean to rent a flat to live in instead of the living somewhere on the mortgage.

Sorry I think you got the wrong end of the stick there?

Arnt you living in the house? If so its your residence and you shouldnt pay CGT AFAIK

RHemmings

Redknapp wrote:

pbradley936: I've got somewhere else to stay thats not a problem.

Its not really about the money at present. I just don't want to be left behind if you know what I mean. The way I see it is theres no point having all my money in the bank earning such a small amount of interest, the way house prices rise the moneys better off being in one.

Provided that house prices keep on rising.

The only other thing i've been thinking is going to auctions to buy another house and repeat what i've done with this one.

Thanks for your help so far.

Provided that house prices rise from now on the same way they did for your first one.