advice needed,possible buy to let? 29 August 2005 at 1:33PM in House buying, renting & selling 3 replies 642 views

audidriver_2

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.

GDB2222

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?

YorkshireBoy

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.

audidriver_2

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