Multiple Houses, advice needed any FA's out there ??

saverbuyer

ACG wrote: »

- If the rent is coming in and its on a repayment or prices rise or both - then the house will return to profit.

Admittedly thats an assumption based on the fact that house prices are at close to their lowest prices in a long time - but in the last 12 months there has been a slight increase (0.2% according to nationwide).

You could argue that if you have a tenant who doesnt pay or work needs doing then it could lose you money but with rent guarantee insurance policies it reduces that risk and with rents close to their highest levels it shows there is a strong demand for rental properties.

In all honesty as you say we need a lot more information to make an informed decision - but im not here to make that decision, im here to help people with mortgage and insurance problems.

Don't know where you are getting your figures because according to Nationwide prices in NI dropped 10% in the last 12 months, we have a more accurate index on HMRC sales showing a 13% drop.

Rents are not increasing here in NI they have dropped. This is the danger when talking about a local market you don't know anything about.

The vast majority of our renters are claiming housing benefit, not sure how that works with rental insurance.

BurntOut

Guess, I started a heated debate here, guys all your views etc are welcomed.

I would have a 10%deposit no problem, but as stated would also have the worry, if a tenant did leave one of the properties.

Someone asked why I was considering this, as mentioned in my thread its to be closer to one of our families to help with impending child LOL, as we are the only 2 in the city, so to speak.

I suppose I could always kick the tenants out of my own property LOL, though my property is a bit small, hence why I was looking at a new build.

We could always rent ourselves, but as mentioned I see that as dead money.

kingstreet

BurntOut wrote: »

hence why I was looking at a new build

For which you are going to need more than 10%. I reckon 15% will be the absolute minimum, although 10% personal deposit and 5% builder gifted could work with some lenders.

ognum

[QUOTE=BurntOut;59911745

We could always rent ourselves, but as mentioned I see that as dead money.[/QUOTE]

NO, dead money is the money you currently owe on you rental properties that are in negative equity and you are preparing to have much more dead money in a new build that will inevitably drop in value the moment you move in.

I am not anti buy to let, I have several buy to let's myself but with your track record of negative equity maybe moving into something you already own that may be a tiny bit small but would do may be the right move at least until you have consolidated your position a bit!

BurntOut

:beer: for all the advice peops.