24. £100,000 No help.

voltec

My old school teachers used to be so negative and said I wouldn't achieve nothing within my life, hard work really does pay off... with their negativity in wanting someone to fail it just makes my drive to succeed higher, sometimes I think I have grown up too quick......

Archi_Bald

tiger_eyes wrote: »

If the OP has £50,000 in savings ... and puts down £14,000 of it as a deposit on the house, plus a bit more in fees etc ... why would he have difficulty covering those costs from his remaining savings?

I am only questioning how he can, as he said, have the house paid for in 7 years time, without making any allowances for repairs/maintenance, insurances, periods of non-occupancy, mortgage interest, taxes.

To put it more bluntly: the figures don't add up. Having "friends in the construction industry" doesn't pay for most of these things, nor does it make you any better at maths.

voltec

write to me in 7 years from now and it will be paid.

Archi_Bald

I don't need to wait for 7 years to know that with £450 a month won't be paying off a £36K mortgage in 7 years, and at the same time pay all the other stuff a landlord has to pay.

Now stop trolling.

darkidoe

Well Done Voltec! Its good to hear people around our age working hard and doing okay. I can understand your dilemma. Being a grown up is not easy eh. I am also trying to figure some things out in life for myself, but I can't see it more than 1-2 years down the line. I would try to broaden your experience, either by volunteering, trying something new ie travelling, hobby and see how it goes. I am thinking of taking a year out myself to try different things. Hope it goes well!

TheTracker

My advice is much simpler. Stop feeling overwhelmed by having acquired money and just keep doing it. You'll probably need it within the next 5-8 years so don't throw it in any investment. Look after it though, put it in high interest accounts for a 3%+ return. Maybe some in p2p getting double that. I doubt many people here had acquired that amount of money by your age so you need to balance expressed opinions. Now I never suggest anyone go into BTL but if it's your industry then it may well be appropriate. Even still, don't jump into it because you have 50k, but work out the best time to do it, it maybe in 5 years time. And don't for a second believe someone you know is going to sell you a house for cheaper than they could sell it to a stranger. What I did at your age with money and in a small loose family was fund emigrating to somewhere I could be paid much more money fr the same work. Later, I used savings to start a business and increase my earnings further. Give that some thought.... Working elsewhere, or starting a business in the construction space. A family member of mine was an electrical contractor and he started his business in his 50s. I know he'd love to have been in a position to do it decades earlier.

atush

voltec wrote: »

write to me in 7 years from now and it will be paid.

I have a feeling you know nothing about being a landlord, and the costs and taxes involved.

That 450/m wont be all profit, there will be mtg interest (which now can't all be tax deductible) and income tax to pay. Not to mention insurance, void periods, council tax etc.

TheTracker

atush wrote: »

I have a feeling you know nothing about being a landlord, and the costs and taxes involved.

That 450/m wont be all profit, there will be mtg interest (which now can't all be tax deductible) and income tax to pay.

I expect he may have already accounted for mortgage interest payable. Monthly repayment of £450 on a £36k mortgage at even 3% interest would see the mortgage paid off after less than 7 and a half years, without accounting for it about 6 and a half years.

He also made no claim that the rental income alone would pay for the house in 7 years or that he thought the 450/month would be all profit. He has saved 50k in what appears to be 6 years. A bit rich to presume he couldn't cover BTL ancillaries in the next 6. Or that he needed extra brains for someone in the construction industry to know homes need repairs.

But nice to see that for once you didn't say it was a no brainer to put it all in a pension.

This thread has the standard amount of vitriol targeted at newbies. Par for the course. Turns out the thread title was apt.

patanne

I would be asking myself why someone would want to sell me a property so much below market value. So my advice if you decide to go ahead is to get the very fullest survey you can get and not just go with a survey enough to get a mortgage despite the added cost. I would also think hard about your stress levels. You seem a little stressed normally without having the added stress of a BTL, but only you can decide this. Don't forget to check into the new tax treatment of BTL income.

lardlikesdogs

It sounds like you need a good woman or man (2015 and all that)
Life is about enjoying it , Money is just the red sauce on a burger the rest of the burger is you.