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

purplemonk3y

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.

It sure is unfair to stereotype people. I live in a private owned ex council house, and have to listen to the single mother downstairs calling her 3-4yr old kids worthless wastes of her life. And have to put up with her inviting all the 'hoodie' yobs (sorry for the stereotype) into her flat to smoke weed.
Yeah i'm sure your fine to let to DSS.

Jesus you people need to wake up. Get a proper job mate. easy money via housing is over!

{please feel free to read all the indented sarcasm in the post} :rotfl:

lynzpower

purplemonk3y wrote: »

It sure is unfair to stereotype people. I live in a private owned ex council house, and have to listen to the single mother downstairs calling her 3-4yr old kids worthless wastes of her life. And have to put up with her inviting all the 'hoodie' yobs (sorry for the stereotype) into her flat to smoke weed.
Yeah i'm sure your fine to let to DSS.

Jesus you people need to wake up. Get a proper job mate. easy money via housing is over!

{please feel free to read all the indented sarcasm in the post} :rotfl:

If this is the case, I suggest you let the NSPCC know in confidence. There is no question as far as Im concerned that this is child abuse. Incidentally, did you know, Child abuse can happen whether the parents recieve DWP benefits or not. Yet another class issue raising it head in homes & property I see.

THE biggest hidden homeless problem in the UK is pensioners and more mature workers (55 plus) who have nowhere to live. this sort of tenant is prime, although your best off looking at ground floor flats, than houses.

back to the OP, you need to ignore all these doommongers. If the council or housing association guarantees to return the property to the same condition, then I personally cant see the problem. However, more so is thatthey usually ask for at least 2 years, some housing associations I know of look for a 5 yr committment minimmum. Will you be able to have your money tied away there for this sort of time?

Uncle_Fester_2

ExceptionOE wrote: »

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

They 'tend' to do that & worse! having said that, there are good tenants who out of no fault of thier own, are on housing benefit!

But it's 'potluck' who the council places you with, unless your finding them yourself.

Personally, I would stay clear, if your just starting out.

thesaint

Gareth83 wrote: »

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

I would like advice on where do I go next?

I asked you how much are the properties in your area?

madbazoo

I am not an expert and you should seek the advice of a specialised mortgage broker but i think you will need to get a 'buy to let mortgage' which is generally not dependent on income but rental potential. Maximum loan is usually 85% so you will have to find the 15% balance yourselves.

Normal formula used is Rent/130% = Maximum Mortgage payment
Then Maximum Mortgage Payment/Mortgage interest ratex12= Loan

Example:

Anticipated rent of £1,000 per month
Mortgage interest rate 5%

Amount you could borrow would be 1000/130% = £769 Maximum mortgage payment per month. At 5% interest that would be £184,615 maximum mortgage.

I have used 5% interest as you may still be able to get a special low rate for the first few years (there were some available last time I enquired in January). If you need to borrow some of the rest of your deposit this can be useful. After a few years you can remortgage based on increased rentals and then clear some if not all of that loan.

Hope this helps with your calculations.