We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
To live in or to rent? No idea!
thestripedzebra
Posts: 1 Newbie
Hi, Hopefully somebody may be able to give me some advice with an opportunity that has presented itself to me.
We currently rent a property for £350 pcm (bargain for property/area (avg 600pcm) due to being from family friend.
From another family friend (I know!) we have been offered a property that they are hoping for a quick sale. For the sake of this conversation the property is being offered to us at £90K, but is worth approx £100K and Fully furnished and has just been done up.
We have been offered approx 10k for a deposit by parents and we have about 5K saved up. we have no debts and good credit history. our joint income is about £50K
The key problem for ourselves is that we will be leaving the country for about 18 months (backpacking) in 2014.
So, our options are
Buying the property and moving in and then either renting when we leave or selling?
or I was thinking buying the property as an investment and renting out whilst we stay renting in our current property?
Any suggestions? Am I missing any obvious information?
What would you do as I know absolutley nothing about mortgages/houses/prices etc...
Any help appreciated
We currently rent a property for £350 pcm (bargain for property/area (avg 600pcm) due to being from family friend.
From another family friend (I know!) we have been offered a property that they are hoping for a quick sale. For the sake of this conversation the property is being offered to us at £90K, but is worth approx £100K and Fully furnished and has just been done up.
We have been offered approx 10k for a deposit by parents and we have about 5K saved up. we have no debts and good credit history. our joint income is about £50K
The key problem for ourselves is that we will be leaving the country for about 18 months (backpacking) in 2014.
So, our options are
Buying the property and moving in and then either renting when we leave or selling?
or I was thinking buying the property as an investment and renting out whilst we stay renting in our current property?
Any suggestions? Am I missing any obvious information?
What would you do as I know absolutley nothing about mortgages/houses/prices etc...
Any help appreciated
0
Comments
-
Just been done up and they're willing to sell it you for £10k less than it's worth. Ask yourself why!
Can you afford a mortgage. How much deposit do you have? Have they done it up with all building regs.0 -
You wont get a buy to let mortgage with only 10% deposit but you could get a mortgage with a lender you know easily allows consent to let cheaply but still the interest rate will be very high on a 10% if you can save up another 5 / 10 grand that would be much better as the other 5 grand you have saved will be eaten up with buying costs.
As poppysarah said look into the reasons why they want a sale quickly and dont just take the obvious reason there maybe an underlying reason for the supposed "quick sale"! Fools rush in! As long as you dont cut any corners and make sure everything is checked.
Apart from that it is do able how much rent do you think you would get from it?[STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/110 -
Do NOT buy and then sell when you go travelling. You'll lose money. The costs of buying/selling are significant, and house prices may well still be falling.
If you buy, as sammye says, find a mortgage lender who give you temporary 'Consent To Let, when you travel - not all will.
Research what is involved with letting before you decide - only then can you decide if it's for you. And do a detailed budget: realistically quantify ALL the costs (including allowance for non-paying tenants, tax etc) and what rent you'll be able to get.
Lots of info here.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards