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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.

Replies

  • GDB2222GDB2222 Forumite
    22.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    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?
  • YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    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
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