Want to get own place, but how?

Pixie5740

You sound a bit like Goldielocks. You're going to hav to compromise on something. If you don't want to share a kitchen or bathroom with others then you're going to have to pay rent or mortgage unless you've got the funds to buy your own place outright.

I'm not sure that you're calculating the profit on the rental income correctly. Capital repayments aren't an expense.

freeisgood

Why not rent a studio flat, as it is just going to be you.

It will be much less money.

Mojisola

chrishar wrote: »

I already have a mortgage on a property which is let out and was a planned purchase many years ago as a pension alternative.

Do you realise that by owning a property you don't live in you won't be able to get means tested benefits if you ever need them in the future?

You will be expected to sell the property and live off the proceeds.

If that money was locked away in a pension, it wouldn't be counted as capital.

LisbonLaura

chrishar wrote: »

it's an income without having to work,

Brownie points for admitting that; unlike most of the serial rentiers who think they provide a public service!

Re living in a camper van: A plain high top panel van with rooflights rather than extra windows is about as discrete as you can get.
From experience, the uk is the one place in Europe you will get hassle doing it, unless you can sort a parking place. At work can be good.

allthingsmustpass

It is expensive to rent isn't it! And also to buy now of course! Mostly because of those buy to let "investors" piling in and pricing out people who want a home. Those very same buy to letters of course charge as much rent as they can get away with, nothing personal, just business.

And now you cant afford to rent somewhere! So yes it is a problem.

But wait… you are a buy to letter yourself?

Whats that phrase again… hoisted by his own petard?

Now you've seen it from the side of the victim do you feel bad about what you have done?

Thrugelmir

allthingsmustpass wrote: »

It is expensive to rent isn't it! And also to buy now of course! Mostly because of those buy to let "investors" piling in and pricing out people who want a home. Those very same buy to letters of course charge as much rent as they can get away with, nothing personal, just business.

And now you cant afford to rent somewhere! So yes it is a problem.

But wait… you are a buy to letter yourself?

Whats that phrase again… hoisted by his own petard?

Now you've seen it from the side of the victim do you feel bad about what you have done?

What goes around comes around. Rising interest rates along with a pro active HMRC may take the wind out of the amateur letting market.

Tixy

chrishar wrote: »

I'm not sure I'd want to end the tenancy as it's an income without having to work, which one day could be useful (when the mortgage is paid and I don't want to work anymore).

Except if this is the only property you ever buy then whilst it would give you an income after you stopped working you will then still be paying out rent to live somewhere else. Which doesn't leave you in a much better position than living in it yourself.

southoftheriver

Thats life surely? You can't always have what you want. Compromise somewhere. Get a studio flat, rent a flasthare with an ensuite or stay at home and recognise that you're in a pretty fortunate position?

Annie1960

chrishar wrote: »

Hi Snakey Well I have been overpaying the mortgage and its roughly 60% of the property value now. If I got another mortgage it would mean increasing the one I already have to find the deposit on the second.

I had always thought that the more I overpaid, the less the payment and more profit I get each month. However doing that still doesn't sort out me having my own place.

You're not really understanding that having a mortgage on a BTL is a good thing, from a tax perspective. The more equity you have in the property, the less of the rental income you can offset against your tax bill.

If you want to buy your own place to live in, then financially it will make sense to increase your mortgage on a BTL (25% equity seems to be the minimum required), and put as much deposit as you can into a second property where you will live.

Either that or plan to move into the BTL yourself and set up a proper pension plan. Again, pension contributions are tax-efficient.

chrishar

I'm not on a BTL mortgage as it's my only property. I got a consent to let which has almost run out I am not sure whether they will extend this or not?