Home Buying Advice

Carpi09

Hello all,

Thanks for looking, I would appreciate some advice re my current situation.

I am 25 years old, single and living with family (Just left the military) I have around £40,000 saved, and looking to get on the market, but not sure if it's the right time for me.

Should I buy a property and rent it out, then when I feel ready, move in myself?

I'm in no rush at the moment to find my own place, but feel this would be a good investment especially if I can find someone to rent it out to.

I earn around £1500 a month after tax. No outgoings other than mobile phone, internet and tv. My car is a new one and is paid outright, so has atleast 10 years to it.

Any suggestions please?

cloo

Certainly property's one of the best places to put your money long term. A lot depends on your income. May be good to live in it yourself if you can afford to and it suits you, otherwise renting might make sense to keep you afloat and then maybe you can take up residence yourself when it's the right time.

Being a landlord does entail quite a lot of responsibility and awareness of laws etc, and the need to bear in mind agency fees if using an agency (and awareness that the agent won't care about your property and who lives in it as much as you will!).

For renting, be aware of demand where you buy and the kind of property it is. Will there be demand for family homes or shared flats for young professionals etc? Are there jobs in the area? (Not much good investing in a cheap as chips place if no one wants to live there) How well fitted out will a house need to be to appeal to local renters? And so on.

Kirstyb1987

To buy a house and rent it out you would need a buy to let mortgage which carry higher interest rates.


You would be better going to a broker but with minimal outgoings, 1.5k a month and a 40k deposit I would say your in a very good position to make the investment especially if you don't yet need a home to buy to live in.


All you would need a decent credit history and I would think you would be fine, depending, mind you, on the house prices in the area your looking to buy and its within your affordability.

Kirstyb1987

Be aware if you did want to have a place of your own you may struggle to get a second mortgage having already got a BTL mortgage so moving in to the house may be your only option later on. MMR and affordability have meant lenders are a lot less likely to give people a second mortgage.