Buying a flat at 24 to rent out

ging84

Strapped wrote: »

When I worked in London, I had several colleagues from cultural backgrounds where it was usual to live with parents until one married. They all bought flats and rented them out, so that they would "be on the property ladder" when they did eventually marry. Seemed to work OK for them.

Things have changed a lot in the last 5-6 years
not so long ago there was no such thing as consent to let, well there may have been but no one really cared, the mortgage companies certainly didn't until it came to repossessing a property, very few letting agents knew anything about it, until the first time they had a tenant booted out by such a repossession .

ArthurOnline

Great to have a plan, as others have said. However, being a landlord is a huge responsibility and does need require preparation and some money in the bank for unexpected repair costs etc. A lodger would be a good idea, but if you're really not keen on that, I think saving for your own deposit might be the best option.

kteara

So what can I do to purchase a flat to rent out around the age of 24 or 26? This has been a goal of mine for some time and its purpose is to provide and generate me an income i could use to purchase more properties

schwam66

BrassicWoman wrote: »

What do your parents think? Sounds like taking advantage to me

what parent wouldnt want their child to succeed? as long as the parents are cool with it and he has spoken to them about what he is planning then go for it.....its a shame more kids his age dont have their heads put on and are saving like he is planning too....dont know how he will make 20k in 4 years working at a supermarket but good on him!! if anything in 4 years he can use what he has saved for a deposit for his own place.....good luck my friend

schwam66

kteara wrote: »

So what can I do to purchase a flat to rent out around the age of 24 or 26? This has been a goal of mine for some time and its purpose is to provide and generate me an income i could use to purchase more properties

to be honest if you want to build up funds and keep adding property to your portfolio i would see if your parents would want to get you started, either they take out a mortgage or spot you fund to start and do a few houses up and sell them on, then you can pay your parents back or they can stay on with you and keep moving up going from flats to terrace houses to semis etc....once you have enough capital to buy a few places to rent out at one time then you do the buy to lets imo....all the best my friend, i cant applaud you enough for taking the initiative to do this, will be a much safer way to plan for your eventual retirement as well, the way this country is going there wont be a pension for you to take!!

kteara

schwam66 wrote: »

to be honest if you want to build up funds and keep adding property to your portfolio i would see if your parents would want to get you started, either they take out a mortgage or spot you fund to start and do a few houses up and sell them on, then you can pay your parents back or they can stay on with you and keep moving up going from flats to terrace houses to semis etc....once you have enough capital to buy a few places to rent out at one time then you do the buy to lets imo....all the best my friend, i cant applaud you enough for taking the initiative to do this, will be a much safer way to plan for your eventual retirement as well, the way this country is going there wont be a pension for you to take!!

Really appreciate your advice and I won't take it for granted. The idea of my parents taking out a mortgage for me is new to me. How do I exactly go about doing this? My parents are not wealthy however are probably more likely to be accepted for one than I am. Will they take out the mortgage in their own name or my name? I obviously pay all the costs every month so I basically use them to get the mortgage application? Sorry if my questions are confusing but those are the questions that come to mind.