First time buyer - looking to rent out rooms

Bluebirdman_of_Alcathays

Pixie5740 wrote: »

So did Harold Shipman and Beverly Allitt.

Woah!!!!!!!!

jack5r

Ok thank you for the information everyone.

I guess I can live there the majority of the time as it's only going to be for a few years. And I'll make the tenant a friend of mine to be of the safe side. We can always rent out my room at my dad's as he's barely even there anyway (Yes this is his main and only home ha. He just travels a lot).

What is the law regarding traveling? Next year I'll be on a ski season. My main home is still my main home in that case, even if I'm renting accommodation abroad?

And hmm Pixie I don't know about that comparison. I'm not sure you could describe their work as improving anyone lives ay

jack5r

Hazjo - Yep I am completely naive when it comes to the laws surrounding buying/renting property. I've been reading up on it for a matter of days.. That said I know countless people who do not declare lodgers etc. Pretty much every family I went to school with have done. That's probably why I did not even think it would be an issue. It's very common in London and I'm yet to hear of a bad story.

hazyjo

I'd actually say it was higher risk of falling out by getting someone you know in, and extremely hard if it came to eviction or something. At least with a stranger, you have no emotional ties. Do some searching on the boards here.


Your insurers won't be happy about your home being vacant, and if you put anyone in, they will be a tenant and you will be a landlord (with MANY things to consider, plus your mortgage provider may not allow it, nor indeed might the freeholder/lease).


Pixie, the comparison was spot on IMO. Very naïve to think someone in a good job is an honest person. Look at all those in prison for tax fraud/evasion, let alone those who have committed horrendous crimes. I'm sure there are lots who had very respectable careers!


Jx

jack5r

Hazyjo - That's a fair point. We were looking at investing the money until my mum retires but price increases in London seem relentless. The increase in value of the property, plus the income from the tenant to pay for the house will likely be much greater than what we can get from completely amateur investing. No one in my family has a clue about money or investing. It may just be easier to sit tight though like you say. What type of professional is best to speak to when it comes to the likely increase of house prices over the next few years?

hazyjo

jack5r wrote: »

Hazjo - Yep I am completely naive when it comes to the laws surrounding buying/renting property. I've been reading up on it for a matter of days.. That said I know countless people who do not declare lodgers etc. Pretty much every family I went to school with have done. That's probably why I did not even think it would be an issue. It's very common in London and I'm yet to hear of a bad story.

I have a friend who drives without a seatbelt who doesn't get caught. I know two who drink and drive - never been caught. I know another who took coke several nights a week, never been caught. Would I do any of the above? Not on your nelly lol. Funny how some things people see as acceptable, or not a risk.


Are you presuming they don't declare it? So where do these lodgers say they live? It'll come back to bite them on the !!!! sooner or later.


Guess I'm too much of a worrier. Each to their own. I know which side of the law I'd like to live on


Jx

hazyjo

jack5r wrote: »

What type of professional is best to speak to when it comes to the likely increase of house prices over the next few years?

Fortune teller!


Seriously, nobody knows. The so called 'experts' have got it wrong on many occasions. I've been through two recessions so have seen the highs and lows. I bought at nearly the height in 2006 and lived there for 5 years - thought I'd make around 50% on my house, but the price rose then dropped again to what I paid (despite me spending thousands on it - new roof, kitchen, shower, boiler, etc). My current house has nearly doubled in 3 years. You never really know what it's gonna do.


Jx

jack5r

hazyjo wrote: »

Your insurers won't be happy about your home being vacant, and if you put anyone in, they will be a tenant and you will be a landlord (with MANY things to consider, plus your mortgage provider may not allow it, nor indeed might the freeholder/lease).

So you cannot leave a lodger in your house for an extended period whilst you go away? Again this is all completely new to me as I know plenty of people who have done this too. Is everyone in London clueless or are we just bigger risk takers

I will look into this and speak to a mortgage company.

Pixie5740

hazyjo is right, no one really know what house prices are going to do. If you wanted to invest in property then you could just do it as a proper BTL with that size of deposit available. That would generate a better yield than just letting a room out. However, property is a long term investment so you would need to consider whether it's worth buying somewhere just to sell it in a few years time in terms of taxes, solicitors fees, maintenance & repairs, estate agents buying/selling fees.

Alternatively you could invest your money elsewhere for a few years but you'd really need to see an IFA about that to help determine your appetite for risk. Who's money is it really? Is your father gifting you the money or will he want it back when your mum retires? (That's rhetorical but you need to consider what this money has to do, generate income, capital growth, remain pretty safe, etc)

Pixie5740

jack5r wrote: »

Is everyone in London clueless or are we just bigger risk takers

Not necessarily the adjectives I'd use.

People in London have probably got away with it (although in reality not everyone will have got off scot-free) is down to supply and demand. People are desperate for somewhere to live so put up with a lot of crap from landlords. London attracts many people from outside the UK who probably don't know or understand their rights. All it takes is one !!!!ed off, clued up tenant to teach you an expensive lesson.