Buying our first house so why would we rent it out?

lowlitmemory

He may be thinking that renting gives you flexibility, but buying gives you security. Buying a house and renting it out whilst simultaneously renting elsewhere could - IF managed properly and subject to the money as Clapton says - give you the flexibility of renting whilst also knowing you are building up equity in a property. It just depend what you want/need out of life at the moment and in the future.

We currently live in a flat we bought (with mortgage). It is not, however, in our preferred area. We could afford to rent in our preferred area, but not buy. We are therefore considering the possibility of renting our flat out and renting another flat in a better area to live in. Our mortgage is considerably less than the amount we could rent our flat out for.

Lovelyjoolz

hazyjo wrote: »

I have similar near-arguments with my mum lol. She's 68 but thinks she's still around 40. Since losing my dad last year, she's been talking about buying a bit of a wreck to 'do up' and rent out. Honestly, I've tried being calm, spelling things out in b&w to her, and explaining the downsides, but I do have a horrible niggly feeling she'll either blame me for her 'not fulfilling her dream' or for being so negative about it all. Oh, and she thinks she'll get a mortgage...

Jx

When I took out my BTL mortgage my broker told me that the age limit on BTL products is 90, so she probably could get a mortgage...

For the sake of your sanity, I promise I won't tell your mum tho! :rotfl:

jojoba2k

Haha funny you should mention about the roof, all the houses down our street are flat-roofed and the lady that used to live next door was very old and got taken into a home as she could barely walk, so I have no doubt it was selling at a lower price due to it needing a fair amount of repair work doing.

Interesting to know about the BTL mortgages, I did not know that.

RJS86

Initial thoughts:

You'd struggle to get a Buy to Let mortgage as a first time buyer(s)

Paying for management fees and a letting agent would use up the £75 a month he's be making in rent anyway.

What if the flat was empty and he had to cover all the costs along with your own rent and expenses for a couple of months?

It's not a bad idea if you can afford to buy a place but move into your own place first.

DaftyDuck

£75 a month more... to cover repairs, insurance, vacant periods, Council tax on vacant periods, redecoration costs, furnish it in all likelihood, (and did you say next door... then), sleeping pills and tranquillisers, half a bottle of scotch a night....

You are right. He is wrong. The end.

hazyjo

Lovelyjoolz wrote: »

When I took out my BTL mortgage my broker told me that the age limit on BTL products is 90, so she probably could get a mortgage...

For the sake of your sanity, I promise I won't tell your mum tho! :rotfl:

Even if she's not working?

I did let slip that there were mortgages around for those over 65, but that she'd need a regular income.

Pleeeeeease, don't breathe a word lol

If she did buy something, I would be choosing it! She was talking about buying 'somewhere cheap up north'. Honestly... :eek:

Anyway, hope we've managed to put your BF off. Are you going to show him this thread?!

Jx

jojoba2k

RJS86 wrote: »

Initial thoughts:

You'd struggle to get a Buy to Let mortgage as a first time buyer(s)

Paying for management fees and a letting agent would use up the £75 a month he's be making in rent anyway.

What if the flat was empty and he had to cover all the costs along with your own rent and expenses for a couple of months?

It's not a bad idea if you can afford to buy a place but move into your own place first.

That was what I said, buy somewhere of our own first and then buy to let in the future. But will he listen?!

jojoba2k

hazyjo wrote: »

If she did buy something, I would be choosing it! She was talking about buying 'somewhere cheap up north'. Honestly... :eek:

Anyway, hope we've managed to put your BF off. Are you going to show him this thread?!

Jx

Hey I'm from up north, it's not that bad... well, it depends how up north you go!

There is no way I am going to show him this thread, unless I want another arguement! I am noting the main points and will tell him I've been doing my homework! :cool:

DaftyDuck

hazyjo wrote: »

Even if she's not working?

I did let slip that there were mortgages around for those over 65, but that she'd need a regular income.

Pleeeeeease, don't breathe a word lol

If she did buy something, I would be choosing it! She was talking about buying 'somewhere cheap up north'. Honestly... :eek:

Anyway, hope we've managed to put your BF off. Are you going to show him this thread?!

Jx

Perfect for you then...
Warning: Daily Mail link, so must be true!

Easy project for the elderly, perfect location. Earning potential up there for the elderly, see other DM stories of a while back..

DaftyDuck

Anyway, hope we've managed to put your BF off. Are you going to show him this thread?!

Excellent advice... :D:D hazyjo: property and relationship expert advice always available...