Buy/let Plans

poppypowers

0lawrenz0 wrote: »

Thanks for your replies. I have thought about them and done some research:
The reasons given for not doing this were:

1.HMO regulations are difficult and expensive to get in line with.
2.Students are awkward to let to.
3.Falling market.
4.Shouldn't get myself tied down.



1.If I live in the property and there are 2 other tenants it would not be a HMO. In a carefully chosen property, I could use a portion of the capital to make any relevant modifications (anyone know where I can find out exactly what is required? The leaflet I read was quite vague- health and safety and "appropriateness" for no. of occupants)

2. I could just as easily rent to proffessionals or migrants, there is a good demand in Leeds.

3. If we are talking about the next year or two, might the market not be in a different situation?

4.This is true, I have a number of potential job offers, some here and some abroad, and all are underpaid! However, if I could somehow get a HMO licence, Would I not be able to travel by renting my vacated room and arranging for someone to act as landlord in my absence?

Thanks

Danny

Dear Danny, ~I am shocked & dismayed by the responses you got about property investment. This penny pinching bunch are not the right guys to ask about property speculation.
Its a great time to invest in property
Buy to let mortgages are cheaper than residential
HMOs are a business as well as a property
If you live in Leeds you can buy your property cheap & add fire doors etc yourself (manage the refurb)
Leeds is a fab place to own student property
Go to a website that supports people willing to take a step towards true financial independance egs The Money Gym, Wealth Company
Martin Lewis has a fantastic site but it is for saving money not making it
Do real research, go to a property show, attend the seminars, read a book, talk to like minded people, feel the fear then do it anyway. Buy your property!!!! Be prosperous - Poppy

poppypowers

I am reading this stuff & I still cant believe how negative this lot are! So its an HMO big deal! Nothing to fear. You dont want to sell property in this market, you just buy it & hold on to it. Do it!

poppypowers

Guy_Montag wrote: »

See where life takes you, now really isn't the best time to do this, graduate & get a job first. What happens if you are offered a brilliant but underpaid job somewhere exotic & exciting just as you've tied yourself down to a house in Leeds?

Yeh get £30k worth of debt first then try get a mortgage when £150k properties cost £300k - great advice..not. When you get an exotic job your lettings agent will manage your properties & you will have a passive income as well as property in the uk to come back to. I hope you aren't a financial advisor Guy!

poppypowers

poppy10 wrote: »

HMO is a real headache, one you can do without at your age.

Please dont cofuse me with this person. Investment is something that you will never regret at your age. You are extremely likely to get through uni debt free.

poppypowers

PasturesNew wrote: »

Bad idea probably.
For starters, with the number of people living in the house you'd have to modify it to meet with the legal requirements to be a House of Multiple Occupancy (HMO), which can cost thousands.

Loads of other reasons why it's a bad idea... I'll let others get their halfpence worth in though

Please do go on! Will he have to invest in fire extinguishers? A fire blanket? A couple of fire doors & some door closers - gee wizz!

fc123

0lawrenz0 wrote: »

4.This is true, I have a number of potential job offers, some here and some abroad, and all are underpaid! However, if I could somehow get a HMO licence, Would I not be able to travel by renting my vacated room and arranging for someone to act as landlord in my absence?

Thanks

Danny

Take the "underpaid" jobs, travel, live a bit..there is a big world out there and more to life than a big house in Leeds. Wait a couple of years....then, if you still want an HMO in Leeds...do it...though trawling these boards, chances are you could get an 8 bedder for the same ££££ in 2 years time.

Running_Horse

Wow. Poppypowers has a bee in the bonnet about this.

SquatNow

Leeds is suffering from massive oversupply and falling prices. BTLers there are loosing their shirts. It's the HPC capital of the UK.

And 100k will buy you a cramped place in the student area that will get burnt down 2 weeks after you finish decorating.

Why not just withdraw all your money, put it in a wastepaper basket and set fire to it... it will save you time and hassle while having the same result.

You live in Leeds.... you must have noticed how bad it is... especially if you live in a student area like Headingly?!?

All that said, if I was looking to do this I'de get my parents to throw their money in and buy the place outright between us... you'll lose money on the place, but it will be yours with no mortgage to worry about, and you could live there rent-free pretty much with the rent from the other tennants going to your parents.

PasturesNew

Running_Horse wrote: »

Wow. Poppypowers has a bee in the bonnet about this.

I agree. Signing up JUST to diss 5 postings is a strange MO.

That is the 2nd angry little person I've seen posting here this week.

epz_2

poppey seems more like a mentalist to me, predicting 50% hpi for the next 2 years, zimbabway is about the only place thats likely. not to mention their expectation of a £30k PROFIT after repayments!!!!