Looking to get into Buy to Let

Crashy_Time

https://www.theguardian.com/money/2017/jun/06/uk-rents-fall-london-brexit#comment-99808485

nubbins

Pixie5740 wrote: »

You could jointly buy the property with your wife and own it as tenants in common with a 99:1 split.

I was going to say this or a declaration of trust...

https://www.property118.com/declaration-trust-mortgage-buy-let/86023/

LadyL2013

tom9980 wrote: »

Are you aware that you will have to pay extra stamp duty?

Are you willing to self manage the property? Giving an agent 10% of your income seems stupid to me.

Do you both have adequate pensions, investments and 6 months expenses in cash savings? Ideally property should be less than 25% of your net wealth.

Are you aware of the huge amounts of rules and regulations you must follow while being a landlord? For instance getting the deposit protected can result in a 3x penalty for doing something as simple as forgetting to print some documents and resend them when a tenancy is renewed despite the deposit being protected.

Personally I think the learning curve of all this regulation is too much a risk now there can only be more regulation and tax on the way.

You can also see that confidence in the housing market has slowed with transactions low, it seems house prices will stagnate or maybe reduce over the next 5 years.

Have you worked out the yields on potential investments?

Also consider that A LOT of people will not look to kindly on competing with FTB for precious small properties/first homes that you don't intend to live in. I have seen people get a lot of stick for this, so aside from financial it's also important to consider the way you may be viewed morally.

caronoel

Please note the wise old owls over on HPC are now happily trolling on this thread:
http://www.housepricecrash.co.uk/forum/index.php?/topic/230297-another-poor-soul-on-mse/#comment-1103247418

Crashy_Time

caronoel wrote: »

Please note the wise old owls over on HPC are now happily trolling on this thread:
http://www.housepricecrash.co.uk/forum/index.php?/topic/230297-another-poor-soul-on-mse/#comment-1103247418

Were all their posts removed?

Mrs_Optimist

We have a dilemma in that we have inherited a house that is mortgage free. Trying to decide whether to release some equity from that house to pay off our existing mortgage and the rental income will cover the mortgage payment on the other house, we will no longer have a mortgage on our family home.

Or

Just sell the inherited house, pay off our morgage and be done with it.

What would you do ?

Pixie5740

Mrs_Optimist wrote: »

What would you do ?

I'd read the other threads started by landlord wannabes and do the maths.

AnotherJoe

Mrs_Optimist wrote: »

We have a dilemma in that we have inherited a house that is mortgage free. Trying to decide whether to release some equity from that house to pay off our existing mortgage and the rental income will cover the mortgage payment on the other house, we will no longer have a mortgage on our family home.

Or

Just sell the inherited house, pay off our morgage and be done with it.

What would you do ?

If you owned your own home outright now, would you consider remortgaging it to the amount you currently owe, buying a property to let out and become a landlord? If not, then that should answer your question.

The other related point to consider is, if you were to become a landlord, would this be the house you'd buy to let out on account of it's good rental potential and low maintenance needs ? Again, the answer to that should guide you.

FWIW I can say what id do, which would be pay my mortgage off and put more money (at least some of what you were putting into your mortgage) into pensions, since I suspect you are like most people, underfunding their pension.

Crashy_Time

Mrs_Optimist wrote: »

We have a dilemma in that we have inherited a house that is mortgage free. Trying to decide whether to release some equity from that house to pay off our existing mortgage and the rental income will cover the mortgage payment on the other house, we will no longer have a mortgage on our family home.

Or

Just sell the inherited house, pay off our morgage and be done with it.

What would you do ?

Selling it may be easier than the drama of being a landlord, but you will need to find a buyer first......quicker you make a decision the better IMO, before we move into leadership contest/EU dummy spit mode etc.