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

hazyjo

jojoba2k wrote: »

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:

LOL, well not so much the 'up north' thing being shocking, more that she's down in Essex so I really don't think she can 'armchair-manage' a house (or two) that she's picked up for peanuts!

Looking forward to hearing your BF's responses

Jx
PS Dafty - d'ya think they'll let us keep the shutters? Will save a fortune on curtains...

dominoman

Your boyfriend is speculating on housing prices. Given that by any measure they are 20-30% overvalued, and even more overvalued than that in London, I would say you are the sensible one here.

Now is not the time to speculate on housing.

Buying as a home is different, as it is more than a financial decision.

DaftyDuck

You'll need the shutters... helps keep the heat and light in on the Gro Bags in the lounge. Don't want those... tomato plants to get cold, you know.

Joanus

I rent 3 properties out. Not by choice I might add, as my partner and I are accidental landlords (long story) I can confirm it is bl88dy hard work at times. It all comes down to how lucky/unlucky you are with tenants/problems. I could tell your BF of some shocking situations we've had to go through that would put him off including being threatened with prison for allegedly evicting someone (who'd actually been sent to prison and his girlfriend had subsequently done a moonlight flit) and having to go through the trauma of getting shot of squatters! It's certainly not for the faint hearted!

franklee

75pcm goes nowhere when letting, what if the tenant doesn't pay, trashes the property etc. Even covering the annual running costs, gas safety check, routine maintenance, insurance, letting agent's fees (or your time to do the work yourself), higher cost of a BTL mortgage over a residential one. etc.

You would be bonkers to have purchased the house next door and not lived in it. You may be asked to leave where you are now costing you agent's fees, removal fees etc which you would not have if you brought and moved in. Then there's the tax breaks you get on owing our own home, no capital gains tax, no rental income to pay tax on etc.

Not that buying to live in is necessarily a no brainer. There's he loss of interest income on the deposit savings you put down, I realise saving rates are low right now but you should get something if you both use all your ISA allowances - a tax break you lose if spending all that money on a deposit to buy. Plus the buying and selling fees, stamp duty, money to do the place up, roof repairs etc. Loss of mobility if you need to work elsewhere.

Do a bit of research I suggest you could present him with a spreadsheet of the costs. I think if the right long term home comes up at a good price it's worth buying to live in but only if you are committed to each other as it gets messy if you split up. Talking of which perhaps you need to switch boyfriends preferably choosing one who doesn't watch homes under the hammer

bluedrop

1. You can't let it out with your mortgage. You need a btl mortgage. Rates are much higher there
2. There are other costs associated with buying and selling. Solicitor fees, stamp duty to start with!
3. Why will you want to buy a house, rent it out and you rent next door??? Logic is beyond me!!!

Lou67

Does sound a bit mad. I would never ever ever want to buy a house and rent it out. I can't think of many things worse than being a landlord. My husband's cousin bought 2 mid terraced houses 3 years ago, and has had nothing but trouble from the tenants, and has paid out more in repairs than he has made in rent. He is also struggling financially now because of all the costs. I know not ALL private tenants are trouble; I am one myself, but some of them are a right royal pain.