what are my options to move out?

want2bmortgage3

i'm currently staying at the parents while i clear some debt, which i've nearly done now. i'd really like my own place though.

i already own a maisonette thats rented out to good tenants, who show no sign of wanting to move on. this pays for itself and leaves a small 'profit' which i leave to pay for insurance/boiler service/gas cert etc.

so i basically have my job income of about £1200 a month take home. i want to live comfortably and not be spending all my money on bills etc.

i don't know of anyone with a spare room, or anyone who would share a flat with me, so it looks like i'd have to go it alone.

i know the approx area i'd like to live, a lot closer to the town centre (walking distance).

so should i just find a place to rent and with my income what could i afford up to? what share of income should rent be as a maximum?

my family would say renting is a waste of money but i cant see any other option. i dont want to kick out my tenants plus my maisonette isnt the location i want to live.

if i can afford a small flat with my wages, and leave the investment maisonette to pay for itself and lower the mortgage gradually then what is the problem with renting somewhere?

thanks for any replies/suggestions

BitterAndTwisted

The danger is that, should anything unexpectedly unfortunate happen with your tenants or the property, once you are out there renting somewhere and contractually committed you will have no resources to recover the situation.

In your shoes I would ensure that you have some really decent savings behind you before you make a move.

The conventional wisdom has it that you should not be spending more than one third of your take-home pay on rent. What would that amount buy you where you'd like to live?

Emmzi

I think you'll be renting a room whether you know the other people in the flat or not. Which can be a bit of an adventure!

want2bmortgage3

i dont want to rent a room from someone, i want my own place with my own kitchen/bathroom etc...

i have 2 options but i dont know whats best.

1. sell my 2bed flat for £140,000 leaving me £30-40k for a deposit on another cheaper 1 bed/studio place around £100k, means i get my own place and still on the ladder and dont have tenants to worry about.

2. keep my property as an investment, with tenants paying the mortgage, then use my job income to rent a flat out eg £600/month leaving me a few hundred spare each month to live on, this also gives flexibility for where i live as i can move about easier than if i bought somewhere for myself

any opinions on whats best out of those?

Jeffrey_Shaw

Option 1 involves a hell of a lot less hassle, you know!

BitterAndTwisted

Sell up and buy something you actually want to live in.

evoke

Agree with B&T. I've never understood people who rent out investment properties and live in 'holes' for so much of their lives, just to make a few quid when they're old and grey.

Sell your flat and buy something nice that you want to live in.

19lottie82

want2bmortgage3 wrote: »

2. keep my property as an investment, with tenants paying the mortgage, then use my job income to rent a flat out eg £600/month leaving me a few hundred spare each month to live on

If your take home pay is £1200 a month, I seriously doubt you could afford to shell out £600 on rent every month. That only leaves £600 for council tax, utilities, TV, phone bills, contents insurance, food and other household costs. AND that is before you have touched any other additional costs such as clothes, going out / entertainment, birthday / xmas presents.

Well maybe you could afford it JUST, but I wouldn’t imagine it would be much fun!

I’m in agreement with everyone else on here, either rent a room in a shared flat or sell your property and buy somewhere else. We’d all like to have our own home and another as an investment, but on your modest wage, it isn’t that realistic, unless you are willing to make some compromises…….

want2bmortgage3

Agree with B&T. I've never understood people who rent out investment properties and live in 'holes' for so much of their lives, just to make a few quid when they're old and grey.

Sell your flat and buy something nice that you want to live in.

Think this is what I'm thinking myself. At first it seemed like a good idea to buy a property to rent out to get on the property ladder and have the mortgage paid by someone else. However I'm a few years older now and it doesnt really feel good, as you put it waiting until your old and grey to get any rewards from it.

I want to fend for myself and be forced to improve myself, I need the challenge of having to pay the bills and not sit there on the sidelines (at the parents/in somebodys spare room) waiting for the future.

Thanks for the posts so far, really helping make my mind up.

I also should mention the maisonette I own currently has several issues which came up when a friend of a friend considered buying it, which put them off. One is the lease is down to about 67/68 years and renewing it costs £15,000 that I havent got. Also the roof has moved and was brought up in the survey but I cant do a lot about it as there are 4 maisonnettes in the block and mine is ground floor. Finally its had ongoing damp problems which I have tried to resolve but the actual cause is still elusive.

DannyboyMidlands

Will the "small profit" cover the £15k for the lease, your share of the roof works and sort out the damp problem?

I don't understand the logic in wracking up these kind of bills to be on the "ladder" (whatever that is) whilst living at parents.

Anyway, you need to factor these costs and any future ones into whatever decision you make.

jivebunny

I wouldn't be so drastic as to sell your house just yet. Try your hand at house sharing. Look on gumtree and spareroom dotco.uk

If you live at your parents now, chances are you'll have it to fall back on. House sharing will be much cheaper than getting your own place as long as you prioratise as follow:

1: The housemates - live with idiots and it'll be crap, irrespective of the house. Live with great people and you could have a great time.

2: The location - Can't head out to the pub with your new house mates if you live in the depths of suburbia and you need to drive everywhere. Try and stay within walking distance of the local the amenities or town/city centre.

3: The House itself, sub prioritised as follows:
a: The shared areas. A decent living room and kitchen is important. Are there enough bathrooms?
b: Your bedroom - Last and very much least. If everything above is good, you'll do nothing other than sleep in it.

If it doesn't work, you're on a 6 months contract. Usually if you find someone to replace you, you won't even have to stick to that. Likewise if you house becomes empty, you can move back into it if you get a replacement tenant. And if you've picked a good house share getting a replacement tenant is easy.

Other than staying at your parent's or your friend's house it's the next most flexible option. Can't hurt to give it a shot.

You don't say how old you are but renting a place to yourself will be a large drain on your finances and quality of living.