I would like to buy to let (I'm 23). advice???

Gareth83

Right, I'm currently living at home having finished university.

I have no debts other than my student loan. I would find it extremely difficult to get on the housing ladder by myself.

3 of my friends would like to rent, so me and my best mate have thought about buying a house to rent to the said 3.

We both have good credit scores and have a combined income of £44k so understand that we should be able to get a mortgage of between £121-£132k (based on the 2.75-3x figure in one of the stickies)

So I'm wondering what do I do next? I've had a look through the stickies but still unsure what to do next.

A work colleague said it would probably be easier to buy and the rent to the council for those on single mum benefits.

Advice muchly appreciated.

ExceptionOE

Don't take council tennants, there's a large chance they will trash the place.

Vickicb

ExceptionOE wrote: »

Don't take council tennants, there's a large chance they will trash the place.

I think this is a bit harsh. You cannot stereotype all council tenants like that. The OP mentioned single mothers, for example, who in my experience are likely to be clean and tidy as they have little ones around.

Gareth, I think your next step is for you and a friend to:
1) see what is available in your price range, and find out what the rental income on similar properties are.
2) Consult an independent financial advisor regarding a mortgage application - you'll need an AIP (agreement in principle) before you submit an offer.

You do not mention a deposit - can you raise one? For buy to let mortgages I *think* you need 15%, but don't quote me on that!

ExceptionOE

Maybe it is, but IMHO it's more trouble than it's worth. I've had people I know stung by this in the past. There's a reason most of the flat rentals round here say "NO HOUSING ASSOCIATION".

hearts

Don't know about where you are but my council rent properties direct from landlords and put the tenants in. Property is guaranteed to be given back in same nick. Also they take it for 5 years with no fee to pay to agent.

DONT RENT TO M8s unless you want to losem.

Zammo

Vickicb wrote: »

I think this is a bit harsh. You cannot stereotype all council tenants like that. The OP mentioned single mothers, for example, who in my experience are likely to be clean and tidy as they have little ones around.

LOL great advice.

:rotfl:

You really couldn't make this stuff up.



Oooops I almost forgot...((((((((((hugs)))))))))))

:T

ilovemycats

ExceptionOE wrote: »

Don't take council tennants, there's a large chance they will trash the place.

Or young professionals who go out drinking every weekend and have no consideration for anyone else (or your property). Or anyone with pets. Any imigrants. Or anyone for that matter.

OP. Your *other* option would be to buy one of these new development flats for 6-months and not let it at all. This is a new trend. You get the 6-month council tax exemption, and at the end of it have a brand new unlived in property to sell once all of the continuing developments have ceased. Buy early on in the development and sell off once all of the builder's mess is finished.

But to write off council tenants (and it's spelt teNants with one 'N' to our mysterious poster) is just ridiculous. It is practically easy money. The trouble is that the councils decide who goes in, so it is a bit out of your hands. Not something I would do with a brand new property for investment that's for sure.

BTL is more than what most people realise when they first get into it. Also with a new property there's the developer niggles which have to be sorted out usually within 1-2 years, so to BTL a brand new property isn't always the best option.

Gareth83

the property wont be brand new it will be something me and my mate can decorate, work on etc.

we would have about £6k deposit

BobProperty

VickiP wrote: »

I think this is a bit harsh. You cannot stereotype all council tenants like that. The OP mentioned single mothers, for example, who in my experience are likely to be clean and tidy as they have little ones around......

Sorry couldn't resist it. :rotfl:
(Read carefully )

thesaint

Gareth83 wrote: »

the property wont be brand new it will be something me and my mate can decorate, work on etc.

we would have about £6k deposit

With £6,000 deposit, you would be able to purchase a property to the value of about £40,000. How much are properties in your area?

Gareth83

I'm not too bothered about what tenants to choose for now.

I would like advice on where do I go next?