First time young property owner

bubblegum94

Hi

I want to buy a house this year, I'm 23. I want to create a plan where I know which direction I'm heading in terms of securing the deposit for my first investment property. I heard that there are 10% deposit schemes, how good are these really?

Pixie5740

bubblegum94 wrote: »

Hi

I want to buy a house this year, I'm 23. I want to create a plan where I know which direction I'm heading in terms of securing the deposit for my first investment property. I heard that there are 10% deposit schemes, how good are these really?

23 isn't particularly young to be buying your first property.

If it's an investment property you want to buy rather than a home you will need a much larger deposit than 10% and many BTL lenders require you to own your own home and some have a minimum age of 25. You will also miss out on the SDLT relief for first time buyers and any HTB ISA/LISA bonus as you will not be purchasing a home.

If on the other hand you are not looking at BTL and are instead wanting to flip a property then you will need a business plan, commercial lending and more than a 10% deposit saved.

Cakeguts

Different rules apply to buying investment properties. The main one being that you won't get a mortgage with only a 10% deposit.

csgohan4

bubblegum94 wrote: »

Hi

I want to buy a house this year, I'm 23. I want to create a plan where I know which direction I'm heading in terms of securing the deposit for my first investment property. I heard that there are 10% deposit schemes, how good are these really?

Where did you hear that about a deposit schemes????? Larry down the pub?


Do you know what the new tax rules coming in means for landlords? What is your yield and overheads???


Legal and tax implications you are aware of???


a BTL is no longer a gravy train it used to be, what makes you think it is any different?


Like any business plan, research, research and research, what are the overheads and profit gained

bubblegum94

Wow, it was a simple question, clearly, Im not an expert in this which is why I asked. There's no need to be so rude about it, basic etiquette is out the window for some @csgohan4

Hm ok, I understand what you guys are saying, If I were to buy as a home, are there any links you guys can direct me to?

capital0ne

bubblegum94 wrote: »

Wow, it was a simple question, clearly, Im not an expert in this which is why I asked. There's no need to be so rude about it, basic etiquette is out the window for some @csgohan4

Hm ok, I understand what you guys are saying, If I were to buy as a home, are there any links you guys can direct me to?

You'll find a lot of smart ars*s here, who just love to disparage posts and are just not ehlpful.

You can get a mortgae with a 10% deposit, depends on how much you earn and the price of the property you buy.
Look for a mortgage calculator and that will give yo some idea.
Look at any property app or web site to find a property in the area you're looking to buy.
Remember to factor in extra charges for conveyencing (basically done by a solicitor), stamp duty, survey, and so on. Also there will be VAT on these charges, depending on the price of the property this could be anything from a couple of thousand pounds to ten thousand pounds.
Go to a local estate agent and they will fill in noe on house purchases
Good luck and ignore the few idiots that respond

dimbo61

If you are a first time buyer purchasing your first home you have No stamp duty to pay up to £3000,000
So that will save you money.
However if you want to buy a property to rent out you will have a host of other costs to pay for

DCFC79

bubblegum94 wrote: »

Wow, it was a simple question, clearly, Im not an expert in this which is why I asked. There's no need to be so rude about it, basic etiquette is out the window for some @csgohan4

Hm ok, I understand what you guys are saying, If I were to buy as a home, are there any links you guys can direct me to?

The schemes you refer to I believe are for homes and not for investment properties, help to buy ISAs is one pf the schemes, Google will provide answers fpr the other scheme.

csgohan just asked questions.

Why is it you want to buy a BTL ?
Yes as an investment but whats the the idea behind it ?
Are you aware of what being a landlord entails ?

Pixie5740

There is lots of information out there for first time buyers. As a starter for ten, there are the sticky at the top of the forum board, the money advisory service, help to buy, and Lifetime ISA.

https://www.moneyadviceservice.org.uk/en/articles/money-timeline-when-buying-property-england-wales--n-ireland

https://www.helptobuy.gov.uk

https://www.gov.uk/lifetime-isa

You can also find information on the MSE website.

However, it appears from a previous thread that you already own or have owned a property before so the FTB reliefs and incentives won't apply to you.

https://forums.moneysavingexpert.com/discussion/5220080

steampowered

Pixie5740 wrote: »

23 isn't particularly young to be buying your first property.

Perhaps in the past. But these days the average age of a first time buyer in the UK is 30. So I'd say it is extremely young.

The_Real_Cheddar_Bob

Pixie5740 wrote: »

23 isn't particularly young to be buying your first property.

I wonder how many sub 23 year olds you know that have a mortgage on a house?

Check out the graph on this old report.

https://www.theguardian.com/money/2015/jan/22/collapse-homeownership-property-ons-report