one or two properties?

jamels2

hi, been thinking about a couple of ideas and wondering what would make more sense:

1. two properties, a 2-bedroom rented out and a 1-bedroom to live in. this need 2 mortgages, one on buy to let. however, i get a place to myself without having to share. this would mean converting my existing mortgage to a buy to let and arranging a new mortgage for the purchase of the one bedroom.

2. one 3-bedroom property with 2 bedrooms rented out to lodgers. i already know the people who i would rent to and could live with them if i had to. this would mean only one mortgage with the biggest loan i can manage as part of it will be paid by lodgers. i know the lodger scheme is tax free up to a certain amount, i assume you just have to declare any income above the limit for tax.

so i need to decide what makes most sense, thanks in advance for any replies!

SerialRenter

To be honest, if you're keen on both ideas I'd say make your decision based on the houses you find for sale.

Find a nice 3 bed? great, go that way.

Find a nice 1 bed? Well, there you go!

silvercar

Does a 3 bed cost the same as a 2 bed and a 1 bed?

Maintenance on one property will be cheaper than 2.


If the plan is to get rid of the lodgers as your income goes up, that leaves you with a 3 bed in the future with no CGT to pay.

jamels2

serial renter, you could be right.

having just searched for 2/3 bedrooms in my budget i can't find anything. 3 bedrooms are generally too expensive. so i looked at 2 bedrooms with a separate lounge that could be used as a bedroom.

the trouble i am finding with these properties is the layouts. any that do have separate lounges, tend to have small kitchens. i guess it's possible to live like that but ideally you want a communal table at least, most of the kitchens haven't the space for a table.

the other layout problem is a lot of the terraced houses which i am looking at because they're freehold are old and have a bathroom downstairs behind the kitchen. i don't fancy having a bathroom on another floor and having to walk through communal areas to get there. if it's not behind the kitchen then it's off of one of the bedrooms. does anyone really want other people walking through their bedroom to get to the bathroom?

now to search for one bedrooms, although i'm not against living with other people, now in my early 30s i do fancy my own space and in a way feel like i've worked for it.