Is buy to let an option?

electricemma

Posted in error. Now realise was clutching at straws to make something out of doomed relationship.

Phirefly

I have no knowledge of BTL (plenty on here who do) but I do know about going freelance and I'd say the best thing to do with your savings is to use them as a buffer until you're established. Even if you don't need to dip into them, having that cushion will give you the confidence you need when going it alone. Also, as I said, I don't know much about btl mortgages, but I DO know its not straightforward to get a regular mortgage when you're starting out freelancing. Sit tight, I'd say.

donkeyman18

So you are 10 grand in debt, your income is about to reduce and you need to use existing savings to make ends meet at present.

And you want to buy a BTL property in a falling market.

Tell me you're not a freelance IFA.

Ewarwoowar2

Why don't you buy a house to live in before starting a BTL empire?

PasturesNew

electricemma wrote: »

I have enough money saved up for a deposit on a property,

That's nice. Well done.

electricemma wrote: »

but my partner has about £10K in debts on Creadit Cards and Overdrafts.

Oh dear.

electricemma wrote: »

My income from work is likely to drop a little soon as I will be setting myself up as a freelancer.

I presume you've done your research and have a client list ready to go or know where the work's going to come from. Plus have enough cashflow to live on between doing the work and getting paid, which would normally be 60-65 days later.

electricemma wrote: »

I was wondering whether it would be a good idea to use my savings as a deposit on a buy to let mortgage and to use some of the income from the rent to pay the buy to let mortgage and to go towards my own living costs.

You are assuming a few things here, without showing us evidence that it will work in your area.

1] For a BTL mortgage, you will need a good deposit. At LEAST 10%
2] There are quite a few expenses up front to take out and get to the stage of having bought the BTL property. Do you also have the cash for these?
3] Rent does not usually cover the mortgage. You will often have your hand in your own pocket. In particular the time it is empty from when you buy it to when you get a tenant in (1-2 months) and later between tenants.

electricemma wrote: »

We currently rent. I'm just looking for a way to make the most of the money I have saved up rather than just spending it to live on!

If you are contemplating needing this money to live on, then why are you also finding ways to spend it so it's not available to live on?

My opinion: forget the BTL, use your money to live on because freelance income is quite late arriving and you still need to build up your income.

King_Of_Fools

PasturesNew wrote: »

Rent does not usually cover the mortgage. You will often have your hand in your own pocket. In particular the time it is empty from when you buy it to when you get a tenant in (1-2 months) and later between tenants.

http://uk.news.yahoo.com/skynews/200...p-327c223.html

The review, published by the Chartered Institute of Housing and the Building Societies Association, said this had led to it being "substantially" cheaper to rent a property than to buy one.

Rents are around 64% of mortgage costs on comparable properties.

SquatNow

I'de highly recommend you buying a BTL property.

Mainly because anyone considering BTL is just a greedy sociopath, and deserves to lose all their money.

So anyway, I recommend you buy a new-build riverside flat in Leeds, ideally off-plan. In fact, if possible, buy 2.

electricemma

SquatNow wrote: »

Mainly because anyone considering BTL is just a greedy sociopath, and deserves to lose all their money.

.

Or someone who is trying to put the money they've saved to good use, without being a bail out for their partner's debts.

tr3mor

electricemma wrote: »

Or someone who is trying to put the money they've saved to good use, without being a bail out for their partner's debts.

I would guess that the mortgage payments would be more than the rent that you could achieve.

So in summary... No.

mlz1413

[quote=electricemma;Or_someone_who_is_trying_to_put_the_money_they've_saved_to_good_use,_without_being_a_bail_out_for_their_partner's_debts.[/quote]

If your worried about using your money to bail out your partner debts surely that is just will power - as in don't. Put the money into a 30 day notice account so that it's out of your everyday reach and to remove the temptation of dipping into it.

I'm also will the majority don't go into btl at the moment with only 10% deposit you will struggle and I seriously doubt there will be any money leftover to give you a monthly income.

PasturesNew

electricemma wrote: »

Or someone who is trying to put the money they've saved to good use, without being a bail out for their partner's debts.

Right now your money might be better off bailing out your partner's debts. At least you will have contributed positively towards his cashflow, which would help you both plan to save together for the future.

If you chuck your money into BTL you will at this moment in time most likely be chucking it (and more) against a wall.

Why not pay off your partner's debts with your money - but put him on a strict repayment plan with yourself so you get a good rate of return and he benefits from a lower rate of interest.

If this annoys either of you and causes you to split up, then it would be an indicator for how well financially-matched you are as a couple and, to be harsh, would bring forward any decisions you might have to ultimately face... without more years/commitments being dragged into the end fight.