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Buying in central London - Renting? Will this work?
Lakelady_2
Posts: 286 Forumite
Now that DD has left home me and hubby are thinking of the future. We live in a small lake District town and own our own tatty terraced house. I would like the money we have invested in this house to work for us. DH is disabled and can`t work, I`m on a low income.
Our house is worth about £275,000. I thought about renting it out, however we would only get £550 per month, not enough to fund the purchase of anywhere else (thinking of DD`s future here)
My next thought was Central London, buy for about £350,000 with savings and a small motgage live in it for awhile then rent it out hopefully for around £1200 which could fund the purchase of somwhere else.
Could this work? Any advice appreciated.
Our house is worth about £275,000. I thought about renting it out, however we would only get £550 per month, not enough to fund the purchase of anywhere else (thinking of DD`s future here)
My next thought was Central London, buy for about £350,000 with savings and a small motgage live in it for awhile then rent it out hopefully for around £1200 which could fund the purchase of somwhere else.
Could this work? Any advice appreciated.
0
Comments
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Once you've taken Central London agents fees out of the money you bring in, you'll be making about 3.5% interest on your investment. It's better in the bank. Property is not a safe investment and being a landlord is stressful, even more so when you are not nearby. You should buy when property is cheap, not when it's expensive!
Why don't you play it simple and try to downsize and/or move to a slightly cheaper area to allow you live mortgage free and have a lump sum in the bank? The money you save can then go into a safer investment.Everything that is supposed to be in heaven is already here on earth.
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Why are you thinking of doing this?
Do you need the money? You want a challenge? You want a job? Really analyze why you are thinking of doing this.
It's not a game (I'm honestly not being patronizing) and you could actually loose money and introduce huge stress in your life.
If you anayze why you are doing this, you could replace that need with something else. Want a challenge? Go to Africa etc etc0 -
Lakelady wrote:My next thought was Central London, buy for about £350,000 with savings and a small motgage live in it for awhile then rent it out hopefully for around £1200 which could fund the purchase of somwhere else.
Could this work? Any advice appreciated.
Err £350k in central London - well you might get a garage to rent I guess...0 -
What about renting out a room?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
Thanks all for the responses. I suppose we do need our heads looking at!
I`ve been looking at Rightmove for a good few weeks now and yes there are properties to be had, studios seem to start at £280000 and go up from there.
San Francisco you are right I think we do feel the need for a challenge though we will do more research.
Thanks also for the suggestion to rent a room, we did do this years ago, if I told you what happened you wouldn`t believe it!0
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