Building a house at 25 - a bad idea?

The_Architect

theartfullodger wrote: »

Seen the news about the 9 landlords being banned in Glasgow??
http://www.landlordzone.co.uk/forums/showthread.php?76961-Nine-landlords-found-unfit-to-rent-in-Glasgow

Being a landlord in Scotland is a serious business, only for those with the financial AND emotional reserves to cope with the "tenant-from-hell" or the "agent-from-hell"....

I can believe it, I've a few friends who have experienced each end of the scale. HMO itself seems to put a big premium on the rental price, so little are registered that those who want 4 people (I believe it's 4 not 3 but could be wrong) have such little supply the costs inflate big time.

jennifernil

You are deluded, HMO is 3 unconnected persons.

Never mind that, where are these properties?

Anything under £50k before refurbishment, is unlikely to rent out quickly or for a good amount.

As far as plots go, you would be unlikely to find anything under £50k in an area you would want to live in.

Where we are, a single house plot is £150 -250k.

glasgowdan

The_Architect wrote: »

http://www.rightmove.co.uk/property-for-sale/property-63227624.html

Just a quick example, some work to be done and will almost certainly go for over £10,000, plenty out there with long term tenants in.

Ok, assume sale price of £12k plus renovations of £5k, factor fee if £50/month and rental yield £250/month. Then £1000/yr repairs, then costs linked to running the business. How does that work out?

Then factor in the potential for stress with scum tenants.

It's a fat no from me. Why have you moved here? Who with? You could get a £100-120k home with your deposit/wage. That's a decent semi detached house in some areas around Glasgow.

jennifernil

Dumbarton is not Glasgow.

It may have a Glasgow postcode,but it is not where the people want to live.

Like I said, the desirable areas are not cheap.

The_Architect

I think this thread has probably run its course now, thanks for everyone's thoughts. There is great value to be had in Glasgow and surrounding areas in general but I will need to scale back my ambitions certainly short term at least.

As per usual, MSE threads provide some interesting discussion with its trademark signature of a few replies where people want to give someone a good kicking, at least it's mildly amusing.

Thanks again everyone.

Ray_Singh-Blue

It's a good idea. You are the architect after all. What's the worst than can happen. You'll learn something that can't be learnt any other way. Build a house. It might not win Grand Designs House of the Year, but maybe your next one will, or the one after that, or the one after that.

System

your biggest problem will be getting a reasonable priced plot anywhere to build on, believe me, I've been looking for years (alerts set up on plotfinder!)
I owned a flat in the west end for a few years and it did me a good turn but it seems theres more value in the southside these days - I would be very vary of cheap areas in/around glasgow for btl - imo your inexperience as a landlord might leave you in trouble with a knowledgeable tenant, and your lack of knowledge of specific areas could cost you dear too

glasgowdan

What was your previous forum name? ��

teddysmum

As has been said, a very cheap property is likely to need thousands spent on it before it's fit to rent out.


Yes, some LAs do sell houses in run down areas for a nominal £1, but there are strict conditions and large waiting lists. Conditions include having been a resident and worked in the area for a number of years, having the means to do the work required and essentially commitment to live in the house personally for a number of years (ie no sale to landlords) and selling on not permitted for a specific time.


The OP won't get much of a mortgage offer on £19000 income (from which they have to live; not just pay for a house) with up to £40000 deposit (as legal fees need to be considered), yet he wants up to four properties or money for a self build. (As he has very limited skills, professionals will be required and they are unlikely to do much work without a considerable up front contribution.)


I once had a work colleague who was living in a static caravan on a self-build plot. The outer structure was completed, but her husband left and divorced her.


Neither, each on a good salary (one a teacher and paid comparatively more than £19000 in today's income values), could get anyone to fund their individual continuation of the build, so the house had to be sold and did not bring back what had been invested.


Conclusion: reality check required.