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To buy or not to buy?
Comments
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moneysavinmonkey wrote: »hmm. hopefully someone will correct me but I think if you are married and living at the same address then any defaults (or bankruptcy) will affect your hubby's credit rating.
Catblue makes a good point. how are you going to finance the project??
Actually you are wrong.
The only way one individuals credit rating affects anothers is if they have joint financial products like a joint overdraft, loan or mortgage. It makes no difference if they are married or living together.
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Penny_Racer wrote: »Need 137k mortgage. Rental income will be 560 -580 pcm.
I realise that the rent will not cover the mortgage repayments.
I was hoping that in 18months - 2 years there will be enough equity in the property to release and pay off my debts. Then we could keep the property as a future investment AND my debts would be paid.
Am I way off here?
If ever there was likely to be a drop in prices it's now! I'm not saying it is going to happen, prices may keep rising for another decade, but the credit crunch is here to stay for the foreseeable, it's not a glitch that will work its way out of the system, it's change. That means people will find it more difficult to raise mortgages, which should lead to a drop in prices.
That aside, from a purely business point of view - if you're not making a profit, why would another investor buy it from you? So that leaves potential home-owners who may buy the place, but only if the rent is not much less than the cost of owning.
I would suggest either
1) Pay down your debts
2) Invest in something safe, a broad spectrum of shares in companies you use (if you like their products the chances are other people do too). I would have said banks, but errr, well now may be a good time. Oil companies, utilities, good ol' Tesco, not too much in any one or one area. Think long term & do some research. However, investing in a loss-making business is not a good idea."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Penny_Racer wrote: »Need 137k mortgage. Rental income will be 560 -580 pcm.
I realise that the rent will not cover the mortgage repayments.
I was hoping that in 18months - 2 years there will be enough equity in the property to release and pay off my debts. Then we could keep the property as a future investment AND my debts would be paid.
Am I way off here?
after 2 years, your debt will be approximately £160k
During that time you will have to find over £100 per month to make up the shortfall between rent and mortgage.
If the place is empty you will have to pay the whole mortgage (approximately £700 per month)
Then you will have to pay for insurance, maintenance, repairs etc which could amount to several thousands of pounds.
After 2 years, I very much doubt there would be much "equity" to "take out" but if you did, this would just add to your debt.
Remember, you cannot take cash out of a house unless you sell it - anything else is just a loan.
I just cannot see how this is a sensible option.
It would be far better to sell the existing BTL and then pay off as much debt as possible.dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
What the OP is proposing is simply fraud and could land him in jail.
The deal he is trying to do on the debts is effectively an IVA. He obviously hasn't told the lenders about the £26k and has instead told them he is broke, hoping they will beleive him and write off half the money. In fact, from what he says, he has £26k plus enough (£24k) to pay half the debts... so he could pay them off entirely.
He's basically just a con artist.
PennyRacer: You are legally obliged to pay the lenders their money. If you deliberately take actions to defray them you can go to PRISON. In this sort of situation the judge will look on you with distain as the offence would be both willful and with mallice. Pay off your debts. The money lent to you ultimately comes from honest savers. STOP TRYING TO DEFRAUD HONEST MSEers.
Mods: As an offence has quite clearly taken place, surely you are legaly (and morally as the victims will ultimately be the kind of saver who is on here trying to find ways to save a bit of money) obliged to report it to the police and supply the OPs IP Address???
Kick, Ban, Report.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Thank you all for your advice.0
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I don't understand.
What are you saying is illigal?
I have told all of my lenders about the money.0 -
Squt now.
Please can you explain to me how I am commiting fraud.
Because if I am breaking the law I serioulsly need to know about it.
Please reply as I am very concerned.0 -
Anyone??????0
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Jeez.
Is your prozac wearing off or something?dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
am i missing something. How does everyone know the OP is 48k in debt?...she didnt mention that in her post 0
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