Silly idea or good investment?

mountainofdebt

Does the granny flat have separate access or would the people who lived there have to come through the garden ? If the later how happy would you be with that?

Jesswithwings

1echidna wrote: »

Have you had a survey done on the property, forgotten the terminology, but the more comprehensive one?

My father in law is an architect and has done a survey, not sure which one he did... but I know he was there for ages and poked around everywhere, inside and outside. We havent had an independant one done though.

Pee

It's important to make sure you could cover a 10% interest rate, even if it would be a struggle, it must be possible.

It would be very unlikely that house prices do not go up, but you can't rely on that and you also can't rely on wages going up, as you say.

Sounds like a fantastic opportunity to me, provided you fancy being a land lady.

1echidna

Jesswithwings wrote: »

My father in law is an architect and has done a survey, not sure which one he did... but I know he was there for ages and poked around everywhere, inside and outside. We havent had an independant one done though.

Your father in law is an experienced professional with your interests at heart. A surveyor you pay for is likely to 'cover' himself with what in reality are 'red herrings'. Personally I'd be more than happy with expertise in the family. You mortgage provider will no doubt insist on an independent valuation survey.

rachbc

I would very carefully consider the future running costs of the house - maintenance, heating (especially with esculating energy charges), structural stuff, if its a victorian house wooden windows need redoing every so often - and on a big detached house this could work out expensive (its £1k for our 5 bed terrace). DIY is great but on a house that size can be overhwelming especially whilst working full time. Also how will you use the space...if you don't have/ don't plan to have a family will you need/ want to be living in a big half empty house?
However if the answer to those questions are all positive - then go for it - property is definatle what I'd do with any money I have as you get to enjoy it even if it doesn't make you 1000s

1echidna

Yes I agree property may well be the most secure form of investment, but if, as seems to be the intention here, it will stay tied up, you can end up capital rich, but cash poor.

CH27

You say you want to rent the granny flats or rooms.
How will you ensure your children's safety?

Jesswithwings

rachbc wrote: »

I would very carefully consider the future running costs of the house - maintenance, heating (especially with esculating energy charges), structural stuff, if its a victorian house wooden windows need redoing every so often - and on a big detached house this could work out expensive (its £1k for our 5 bed terrace). DIY is great but on a house that size can be overhwelming especially whilst working full time. Also how will you use the space...if you don't have/ don't plan to have a family will you need/ want to be living in a big half empty house?
However if the answer to those questions are all positive - then go for it - property is definatle what I'd do with any money I have as you get to enjoy it even if it doesn't make you 1000s

Thank you. Energy costs are a huge consideration and one which make me keen to rent out the lower part of the house. We will ask the tennants what their energy bills are and work from there (we know them).
As far as using the space, one of the bedrooms will become a play room - and later when the children are older, a study and the remaining bedrooms will be one for each of us and the downstairs grany flat. Otherwise its just the standard lounge, dining room, kitchen, conservetory and bathrooms.

gingin_2

We bought a tired former victorian pub late last year. It went through the survey okay but small things are mounting up. The basement is a problem in terms of plumbing and ventilation, it will cost us a fair bit to put right. We seem to find at least one problem a month, latest is that a number of sash widows were rotting and broken guttering. The heating bill is very expensive. I wouldn't change it though and love all the features.

Could you rent the basement out as a holiday flat? You might get a better return and not have to permanently have someone living below you.

Spendless

Jesswithwings wrote: »

DH and I have the opportunity to buy a massive property with a granny flat. The house itself has 7 bedrooms and 3 bathrooms altogether so plenty of space for us. Its a beautiful victorian building with lovely gardens and close to the beach, town centre and local schools.

Ok... the finance bit. Currently we have a 4 bed semi, but we are coming into some inheritance. The Big house will mean we will have a monster of a mortgage but at the moment we have a lot of high interest loans (which are going to be paid off when the inheritance comes to us) the extra mortgage we will need will only cost us £100 a month more than we are paying at the moment. We will also be able to fix the mortgage for several years rather than be on the variable one we are currently paying. The Big house could have a "granny flat" at the bottom, with 2 bedrooms, a kitchen and a bathroom as well as a separate entrance which we could rent out to either students or holiday makers to generate some extra income.

Its a big decision to make, but it would be our house for life and we would never need to move again (until we go into retirement homes but as we are 30, that won't be for a while!) the market will hopefully go up in that time and we will make thousands on the house.

I'm swinging between loving the idea and freaking out. My sister is a chartered accountant and has looked at our accounts and agrees that its something that we could manage, and if we rent out the granny flat then we will be very comfortable.

I don't want to get swept up in the romance of buying a new house and I'd appreciate some objectective opinions. Are we wise to be doing this? or is it a big mistake?

Is it in a decent area with decent schools (both Primary and Secondary)? I ask because the bigger houses near to my town centre (like you've described) are in or on the fringe of the red light area and many have also been divided into flats, bed-sits. My friend who lives in the place, says she struggles to get to know people as so many are short term renters.

The inheritance. Is this coming your way as in the person you've inherited is already dead and the money just needs sorting out, or as in Great Aunt Ethel aged 88 says you are in her will, but she could be fibbing (I've lost count of the number of people who've said my will says x, and when they've died it's said nothing of the sort) could go into a care home, could decide to leave it to a cat shelter or cor could marry a toy-boy and leave it all to him.