How does this sound as an investment?

Moneysaverchris

Hello all,

I plan to invest money in property, i have a deposit ready to go and almost have a mortgage certificate from Natwest.
I have 3 credit cards all are clear,
1 loan for £7500 But i will pay a couple grand off it before i get my mortgage applied for, and ofcourse i have paid some already, spotless credit history,30k a year job and a company i just set up for private cheffing.which i don't expect anything from but could realistically make another 20k (i am not depending on this at all) so a few extra quid! 21yrs of age.

MY outgoings per month are
rent- £200
Petrol - £150
Loan - £155
and a few other bits £50

So realistically practucally nothing, a decent position to be in.

I want to buy a house circa 130k to rent out.I am aware of all the rules and regulations and registering for capital gains tax etc.
I am doing it as an investment? What are your opinions - good move or silly move

chris

kingstreet

You got a 25% deposit?

You doing the BTL mortgage through NatWest?

What's the rental income?

Moneysaverchris

kingstreet wrote: »

You got a 25% deposit?

You doing the BTL mortgage through NatWest?

What's the rental income?

yep got the deposit i saved it, thats the mortgage yes and not sure as there is 3 property's im potentially interested in. but all 3's rent would cover mortgage.

Thrugelmir

Moneysaverchris wrote: »

but all 3's rent would cover mortgage.

Is letting profitable though?

Property involves considerably more than just collecting rent and paying the mortgage. You are running a business. Not investing.

maninthestreet

Moneysaverchris wrote: »

MY outgoings per month are
rent- £200
Petrol - £150
Loan - £155
and a few other bits £50

So realistically practucally nothing, a decent position to be in.

So you don't eat??

kingstreet

When you say the rent is covering the mortgage, do you mean;-

Rent = 125% of monthly mortgage interest @ 7%pa?

Moneysaverchris

maninthestreet wrote: »

So you don't eat??

https://forums.moneysavingexpert.com/discussion/comment/63135591#Comment_63135591
this should answer that

Moneysaverchris

kingstreet wrote: »

When you say the rent is covering the mortgage, do you mean;-

Rent = 125% of monthly mortgage interest @ 7%pa?

Thrugelmir wrote: »

Is letting profitable though?

Property involves considerably more than just collecting rent and paying the mortgage. You are running a business. Not investing.

I mean that the mortgage would be covered plus about £120 roughly on all 3, i understand it's not massive profit but surely the money they pay into my mortgage is money i don't have to pay and therefore profit too?

R_P_W

Have you allowed for income tax? Void periods? Repairs?

Didn't think you could get a BTL mortgage without have your own home too?

Yorkie1

Slightly concerned you think you need to register for CGT...

Is this definitely a Buy to Let mortgage?

Moneysaverchris

R_P_W wrote: »

Have you allowed for income tax? Void periods? Repairs?

Didn't think you could get a BTL mortgage without have your own home too?

Yorkie1 wrote: »

Slightly concerned you think you need to register for CGT...

Is this definitely a Buy to Let mortgage?

Yes i have allowed for tax etc, and yes buy to let mortgage i've spoken to Natwest in depth we have a good relationship.

Need to look into the tax side more but i was told it was capital gains tax.I maybe wrong