PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
The Forum is currently experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

advice needed,possible buy to let?

Hi all,first post on the forums.just looking for some different point of views on my situation.

Bearing in mind i live in yorkshire where house prices are cheaper than down south.
I currently own a £120,000 with a £32,000 mortgage

I currently have more than enough to pay the mortgage off,but i'm thinking about buying a bungalow to rent out,there going for about £100,000 in my area.I could possibly put £50,000 deposit on a place ,but would require me to see an accountant regarding shares,cgt e.t.c..

I would see this as a investment for the future ie pension lump sum.

Any thoughts would be most appreciated.

Comments

  • GDB2222
    GDB2222 Posts: 26,085 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    What income would you get from it? As a rough rule of thumb multiply the monthly rent by 8 to 9 to get your actual annual income before mortgage cost. Will this cover the mortgage of £50k plus the interest on the £32k that you will leave outstanding?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Can't help with your question, but just to say I had to do a double-take with your user name as I didn't remember posting about buy-to-let's!!

    I've sent you a PM.
  • pm sent back yorkshireboy :rotfl: .

    Regarding the question,should get £450 a month rent-10% agent fees,mortgage would be approx £300 a month.
    Mortgage on current house is £210 a month.
    Am i better making the mortgage on the 2nd property same as the rent so there is no tax to be paid?.

    thank's in advance
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.5K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.3K Spending & Discounts
  • 243.5K Work, Benefits & Business
  • 598.1K Mortgages, Homes & Bills
  • 176.7K Life & Family
  • 256.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.