How to step on and walk the property ladder

jennhg88

Have I also inherited a fortunate from a nirgerian prince?

muz3562

Only problem with this plan is that whilst you are ploughing everything into the BTL property you wont be saving for a deposit for a place to live yourself or a second property . So you will be like everyone else who only owns one property , only you wont be living in the one you own and will be paying market rent elsewhere so no better off .



I can see the benefit if you are lucky enough to have somewhere exceptionally cheap and secure to live yourself . Like I am currently lodging with a workmate paying £280 a month all in for rent , utilities , council tax . But If I had to market rent I would be paying £450/£500 just rent even up north . No way I could pay that , and overpay 10k a year into a btl mortgage and save for a deposit for a second place . And that is earning more than £15k a year .



Besides BTL is not the panacea it is made out to be , sure we have allseen the horror stories in the past . A workmate of mine bought a flat he thought was a steal , put about £12k into it to modernise and started renting it out . First 4 years it went swimmingly . Then he got a £6k bill for some repairs to the building because the management co had kept the service charge low so there was no sink fund (100k divided by 18 leaseholders) Then had a void of 16 months , in which time he still had to pay the service charge and council tax . After this he decided to redo the kitchen before letting it again. He had a set of tenants who seemed great at first passed all checks . Then 18 months in their relationship turned sour and they stopped paying the rent he suspected she was using the place to prostitute herself . He served notice they (at this point just her the bloke had actually told the letting agent she had changed locks and kicked him out ) refused to leave , ended up having go through the courts . Once he got possession back he found that she had ripped out the kitchen he had only just had fitted , punched holes through loads of partition walls . Smashed doors off their hinges , never bothered cleaning the bathrooms . And used a tumble dryer intended to be vented externally in an enclosed cupboard . So you can imagine the damp . He never saw a bean from them for the last 6 months rent whilst he was trying to evict them . He did however get to keep their £6oo deposit :think: