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buy to rent
spezial
Posts: 348 Forumite
I was thinking to buy a studio or 1bed flat in the outskirts of London, maybe Basildon or Pitsea, in order to rent it. My ambition is to pay itself, ie, the rent to pay off the mortgage. Has anyone researched something like this? Is it doable? Any advice on real life situations?
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Comments
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Buy in cash or with a mortgage?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Why would you rent a flat that you already own or do you mean that you want to purchase a flat to let?0
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A few days ago you were asking about how to claim WTC.
Are you sure you're in a financial position to take on a buy to let mortgage?0 -
I will take a mortgage and I will pay it from the rent I will receive0
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So in otherwords you want a buy to let mortgage BTL. First you need to have a least 25% deposit plus the mortgage rates on BTL are a lot higher than your everyday mortgage.0
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And most lenders will not loan to people that do not already own a house.0
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mmm
I dont have a house and I won't pay an interest more than 4-5%
when I buy a house with mortgage, do they have to know what I am doing with the house? that's madness! the government should make these arrogant banks less nosy
then my only option is to buy it in cash now and start lenting it?
will I be sure that it's a good investment?
in the areas I am looking at, more rents are aroung 600pcm and most services and ground rents are 100pcm, so I end up with 500 minus the income tax which can be 30%, so I end up with 350, and if there are months without rent, or any damages in the flat or maintenance, then this can drop to 250-300!!! and what if I have a company to manage it? how much they will keep for themselves??? they may give me 200 pcm, which is nothing compared to the whole hassle and the potential earnings of the 80k capital with 3-5% deposit interest!!!0 -
I was thinking to buy a studio or 1bed flat in the outskirts of London, maybe Basildon or Pitsea, in order to rent it. My ambition is to pay itself, ie, the rent to pay off the mortgage. Has anyone researched something like this? Is it doable? Any advice on real life situations?
You will need to be able to prove to the lender that you can pay for the mortgage without taking rent into account (it isn't a guaranteed income stream for a beginner with no portfolio). Given the nature of your other questions, you are unlikely to have the funds to afford the mortgage.0 -
mmm
I dont have a house and I won't pay an interest more than 4-5%
when I buy a house with mortgage, do they have to know what I am doing with the house? that's madness! the government should make these arrogant banks less nosy
It is the bank's money. Surely you appreciate that they are duty bound to undertake due diligence on what & to whom they are lending against?
TBH, your post comes across as naive and I would suggest you reconsider this investment.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
stick to the topic and let my ability to take a loan for myself
just answer to my question if such movement is beneficial and don't assume about my ability to get a loan0
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