Buy/let Plans

poppy10_2

poppypowers wrote: »

Investment is something that you will never regret at your age. You are extremely likely to get through uni debt free.

Smells like a troll to me. Best just to ignore him.

poppypowers

No I am not an angry little person or a troll nor do I smell. I feel quite passionately that none of you know what you are talking about and that the guy needs some encouragement. Squatnow is saying pour all your money into the property mortgage free. Why would anybody want to do that? Get an interest only mortagae, make your tennants pay it, cream off the profit (HMOs are one of the few places you will get profit after mortgage payments & hang on to the property until it doubles in value at least. When property goes up 10 percent that 10 percent on the value, not your investment. Put in as little as you can & leave your money in the bank. Better still buy more properties with it.

Running_Horse

poppypowers wrote: »

until it doubles in value at least.

That sounds like a plan!

By what year do you predict the average property in Leeds will have doubled in value?

Running_Horse

poppypowers wrote: »

until it doubles in value at least.

Serious question. How long before you believe properties in Leeds double in value?

Running_Horse

Have prices in Leeds started to skyrocket yet?

brit1234

Its clear to see that while prices collapse all round the country that Leeds will be immune. I hear from reliable sources that hundreds of Rusian Billionaires are relocating there. Also there is talk of building a new base for the worlds financial markets in the town center to eclipse New York, London and Hong Kong put together. Remember prices can only go up.:rotfl:

I'm predict a tripling of prices in the next 3 months.

SquatNow

Prices have already gone up 50% this weeks.

I should point out this has nothing to do with the fact that the've finished pumping the water out now. Nothing at all.

Honest.

PasturesNew

0lawrenz0 wrote: »

Hey there! I am due to graduate in June, and am beginning to work my plans out for the medium term future.
The plan I am considering is to buy a 3-4 bedroom house in my area (Leeds), which are currently around £100,000.

And where will the £15k deposit come from? And the other £1-3k to buy?

0lawrenz0 wrote: »

I would then let the other rooms to students, in order to cover my repayments as much as possible and ideally allow me to live rent free (possibly saving any extra for a mantainance fund).

Students and non students should not mix in a house. As the only non-student in there you'd be responsible for the full council tax (less the 25% discount for being single).

0lawrenz0 wrote: »

I have £25,000 in savings, partly inherited and partly my student loan in a HSBC bond.

OK, so that's the deposit/money to buy covered.

0lawrenz0 wrote: »

I do not know about salary after graduation but I do not have high hopes!!

So you'd spend the rest of your £25k-£18k=£7k paying the mortgage before you got any students in, which happens in only 1-2 specific months of the year, so you might have to wait until the next lot (1st when they look around the Uni/town; 2nd later lot when they turn up in Oct and didn't book early)

0lawrenz0 wrote: »

However, my parents, who have significant capital and no mortgage themselves, would be willing to be my guarantours, and I have also considered buying a larger place (6-8 bed) with a friend for the same purpose.

Spread the risk. Take your family and friends down with you. Good plan.

0lawrenz0 wrote: »

Please give advice on the above, do you think it is a good idea? What would be a potential plan of action?

Really bad idea.

The house, for starters, would be a HMO. In many areas you would have to check if a HMO was allowed - get permission. Then there is a whole raft of legislation you have to follow to get the property up to standard for this.

Then you have to find all these students. That will take time/money.

Students will only be looking to move into somewhere at specific times of the year. You might buy the place, get approval, get it done, only to find your timing was a week out and there are no students left for another 6-9 months.

You will then need to be responsible for the property, repairs etc.

You say you might live in it. Not a great position to be in - the only non-student in a house full of students. And you might find many don't want to live with a live-in landlord.

You will need to know and understand and correctly administer the rooms with regard to legislation (agreements, deposits, etc).

Then what if you get the job of a lifetime opportunity, 200 miles away. Or your mates decide it's a fab idea to all rush off to Australia to work for a year or so ... and you want to go.

I won't even mention that the property might be cheap, but might end up being a right money pit in its own right.

I will stay quiet on words like: house price crash, negative equity, recession.

I'd not do it. I bet your parents won't be over-pleased either. And as for your mate, if he thinks it sounds like a good idea then he needs a good slap round the chops too.



Good luck!

Jonbvn

OP,

Lots of advice on this thread by several different well known property forum posters. One very optimistic new poster telling you to jump in feet first.

You decide?

PasturesNew

Who gave that 11 year old an Internet access?

I never see any links substantiating those wild statements.

If poppypowers knew where these magical properties existed, there'd be no time to post here ... all spare time would be spent rushing round and snapping them up so they can start making money sooner/soonest.

Go poppypowers ... run like the wind ... grab those magical properties before we catch on to where they are.