rent out my place and buy another

Flyboy152

ViolaLass wrote: »

But he's not breaking even at the moment, without any mortgage.

As we are unaware of the OP's outgoings and current income, it is not really feasible to speculate. However, if his current income and any rental profit exceeds his outgoings, he will be better off.

bones65

I wish i was mortgage free but if i was and needed to sell REDUCE the price now its a buyers market. Also a hobby of mine is Interior design. First impressions in any house in any market conditions are the everlasting ones. So is your house presentable tidy clean and smells nice. The outside is just as important as the inside. Is your colour taste putting viewers off ie bright walls and ceilings etc, buyers normally want a blank canvas to work to ie plain neutral colours and carpets, well kept garden etc. Reduce the price yes but these little things will maybe not make money but will increase the sale potential. Other quick no cost tips, fresh coffee in perculator gives a nice aroma as well as air freshners etc.

This works believe me ive tried it i am 46 and am in property No6.
Maybe looking at N07 soon due to split from partner.

ViolaLass

Flyboy152 wrote: »

As we are unaware of the OP's outgoings and current income, it is not really feasible to speculate. However, if his current income and any rental profit exceeds his outgoings, he will be better off.

It's not speculation - s/he stated earlier that they are struggling. And that's without a mortgage.

If, if, if - sure, but equally, if the tenants do a runner or he can't get any or they trash the place then he's in trouble.

Graham_Devon

Flyboy152 wrote: »

As we are unaware of the OP's outgoings and current income, it is not really feasible to speculate. However, if his current income and any rental profit exceeds his outgoings, he will be better off.

We do know the op needs to pay off debts.

We know hes also being chased for money.

We know the OP cannot afford to live (in their own words).

Your post relies on if's. If he can make a profit. If there are no void periods.

But it still doesn't answer the question of giving money to the CSA or the debts.

Simply selling up and buying somewhere cheaper won't rely on if's. It's a done deal.

Flyboy152

Graham_Devon wrote: »

We do know the op needs to pay off debts.

We know hes also being chased for money.

We know the OP cannot afford to live (in their own words).

Your post relies on if's. If he can make a profit. If there are no void periods.

But it still doesn't answer the question of giving money to the CSA or the debts.

Simply selling up and buying somewhere cheaper won't rely on if's. It's a done deal.

But none of you know anything about what the OP earns, what his debts are or how much of a mortgage he might need. He might not get tenants who "do a runner." In the last nineteen years I have never had a tenant "do a runner." That is because I check them out before letting to them; this reduces the risks. I also take out rental and legal insurance (incorporated into my buildings cover), just in case. If the OP finds a half decent agent, his potential for falling foul of unreliable tenants is greatly diminished.

If he can realise sufficient equity from his property to clear his debts (presumably a large proportion of his income deficit is taken up by servicing them) and he makes a profit from the rent (or even just breaks even), why shouldn't he be better off?

JimmyTheWig

Flyboy152 wrote: »

If he can realise sufficient equity from his property to clear his debts (presumably a large proportion of his income deficit is taken up by servicing them) and he makes a profit from the rent (or even just breaks even), why shouldn't he be better off?

Agreed.

Equally, if he can find the money he needs to pay off his debt in a brown paper envelope laying by the side of the road then he'd be better off.

But neither is likely to happen. So I wouldn't suggest the OP spends his time looking for brown envelopes or investigating this buy-to-let plan.

Flyboy152

JimmyTheWig wrote: »

Agreed.

Equally, if he can find the money he needs to pay off his debt in a brown paper envelope laying by the side of the road then he'd be better off.

But neither is likely to happen. So I wouldn't suggest the OP spends his time looking for brown envelopes or investigating this buy-to-let plan.

How do you even know that? You have no idea about the personal circumstances of the OP.

geoffky

bones65 wrote: »

I wish i was mortgage free but if i was and needed to sell REDUCE the price now its a buyers market. Also a hobby of mine is Interior design. First impressions in any house in any market conditions are the everlasting ones. So is your house presentable tidy clean and smells nice. The outside is just as important as the inside. Is your colour taste putting viewers off ie bright walls and ceilings etc, buyers normally want a blank canvas to work to ie plain neutral colours and carpets, well kept garden etc. Reduce the price yes but these little things will maybe not make money but will increase the sale potential. Other quick no cost tips, fresh coffee in perculator gives a nice aroma as well as air freshners etc.

This works believe me ive tried it i am 46 and am in property No6.
Maybe looking at N07 soon due to split from partner.

you really have watched too much property !!!!!!...What planet are you on, fresh brewed coffee...omg...what next twig in vases.

Flyboy152

bones65 wrote: »

I wish i was mortgage free but if i was and needed to sell REDUCE the price now its a buyers market. Also a hobby of mine is Interior design. First impressions in any house in any market conditions are the everlasting ones. So is your house presentable tidy clean and smells nice. The outside is just as important as the inside. Is your colour taste putting viewers off ie bright walls and ceilings etc, buyers normally want a blank canvas to work to ie plain neutral colours and carpets, well kept garden etc. Reduce the price yes but these little things will maybe not make money but will increase the sale potential. Other quick no cost tips, fresh coffee in perculator gives a nice aroma as well as air freshners etc.

This works believe me ive tried it i am 46 and am in property No6.
Maybe looking at N07 soon due to split from partner.

Purchasers are not stupid, air fresheners hide smells like damp, dogs, drains and death.

JimmyTheWig

Flyboy152 wrote: »

How do you even know that? You have no idea about the personal circumstances of the OP.

You are right. I don't know. He might find the money in an envelope at the side of the road. Or he might be able to get this buy-to-let scheme to work.

But these are (some of) the reasons why I think that it is unlikely...
* He is in significant debt. There is a credit crunch on. I can't see a bank being prepared to lend him significant money.
* I've heard many buy-to-letters on these boards who have got themselves into trouble because the costs are more than they anticipated. If they can't manage it then I'm not sure that the OP can when he is also looking to raise extra money to pay off debts from it.
* If he takes out a mortgage on his home now to then let it out, the debt was clearly not used to purchase the property and so interest on the mortgage will not be tax deductable, so he will be paying tax (possibly at 40% if he is a high earner which I believe some have wondered) on most of the rent that he receives. If others are struggling to make a profit on a buy-to-let when the rent they receive is tax free (due to offsetting the mortgage interest against profits) then I can't see how the OP will manage and pay tax on it.