in a hell of a mess - please help!

chris163

precisely! - its currently getting £495 a month for last 18 months - so ive been testing the market by saying 'i have a nice studio flat becoming available for £530 etc.' and have had a lot of interest. I even posted a false one on our website and got 3 emails about it....so im certain i can let it!

Im really hoping I can sort something out....

the other alternative is giving my parents the deposit and getting them to take the mortgage out as their obviously not first time buyers?

silvercar

BTL mortgages depend on the rental value and the size of your deposit, whether you are a FTB or not is probably immaterial in most cases.

The difficulty you face is the fact its a studio.

You obviously have a good knowledge of the property market but I remember the crash in the early 1990s (do I sound old?). people around here (outer london) who had been put off buying studios due to the market suddenly found they could afford 1 bedroom places and left the studios to rot on the market.

HeadInSand_2

chris163 wrote:

Yea - thanks for your advice.

I am a letting agent and several landlords do it...but I wanted to do everything above board.

My biggest problem is im FED UP of seeing property prices rise. I dont have a foot on the ladder and in all honesty...its just depressing seeing them rise. I have already seen them rise 10-15% in the last year alone...

I have some money which i can access in about 4 months time - but i suspect prices will rise further in this period....making me even more behind...

What goes up...
We are at the peak of one of the biggest speculative property bubbles ever seen, some more IR rises could deflate this. No one knows what will happen but I'd avoid property at this late stage in the game, you could lose deposit or even go neg. eq. if prices tank.

chris163

headinsand - thanks for your tip

I think you could well be right....i suppose my feeling is with a studio/1 bed im minimising my risk as i can let it easily and smaller places will be in demand.

Part of me has considered spending £180k on a nice 2/3 bed but i think this could be very risky at this late stage.

Mr_helpful

Lets get realistic Mortgage if you get one at 75% is about 420 but could well be more Cost of 28K being tied up aprox £100 per month. Ground rent buildings insurance etc say 50 per month (probably more) Advertising and void periods as studio flats have high turnover I dont know but you should.
The words touch , barge pole and wouldnt would all go in my sentence but not in that order.
However I cant stop young enthusiasm and Its a good learning curve so I wish it works for Chris.