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Confused please help - buying a house

Vaderkad84
Vaderkad84 Posts: 8 Forumite
in House buying, renting & selling
Dear all

I have around 60k in savings and I am currently living with my parents.

I always intended to buy a house in the future once I got married however I am looking to fast forward things slightly.

Currently I have a job where I am earning around 40k, I believe that it is probably a good time to buy a house as I will be able to get a mortgage. It is likely that I will change jobs in a few years and my annual salary would not be as high which will effect how much money I can borrow from the bank is mortgage.

I was thinking of buying a property around 200k and possibly renting out in the future. I would possibly sell this property or eventually live in it. I will be able to pay the mortgage as I will be living at home and currently do not have many outgoings.

I was then thinking of buying a much cheaper property and possibly building a property portfolio. However if I eventually want to buy a property of my own,
will these properties be taken into account when I am offered a mortgage? There is a possibility at this time my salary would be lower than what I earn now.

What do I do?

Do I buy a nice property now whilst I have the salary?

Do I buy a cheaper property and rent it out as it will assist me in getting a mortgage in the future eventhough my salary will be less

How much money do you put in a deposit from your savings?

I look forward to any advice. Thanks
«1

Comments

  • Slithery
    Slithery Posts: 6,046 Forumite
    First Anniversary Name Dropper First Post Photogenic
    edited 6 December 2017 at 12:26AM
    To let the property you will need a buy-to-let mortgage instead of a residential mortgage. These have different rules, one of which being you must already own a residential property, so this could make it a non-starter straight away.

    Being a landlord isn't easy money, you need to run it as a business. Please at least read all of the following to see what you would be getting yourself into...

    http://forums.moneysavingexpert.com/showpost.php?p=67759929
  • glasgowdan
    glasgowdan Posts: 2,967 Forumite
    First Post First Anniversary Combo Breaker
    I think you should buy the 200k house and move into it and enjoy. Forget trying to build a property portfolio and focus on your career.
  • JoJo1978
    JoJo1978 Posts: 375 Forumite
    First Post
    A property portfolio is a hard route to a pension unless you're willing to put the work in. Once you've got a decent pension pot you might consider parking some of it in property, but as others have said there's a lot to consider
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    Get your own home first.

    A BTL mortgage would make it more difficult to buy your own home. Plus it is not particularly tax efficient.
  • Vaderkad84
    Vaderkad84 Posts: 8 Forumite
    Thank you for your advice.

    The problem is that as my parents Need my help in caring for them so i wish to look after them for a few years before i move out.

    However by that time i may not have the salary that i am on now which will effect my mortage.

    The housing market will only get worse so i thought i could possibly invest in a nice house now. But the problem would be that i would not be living in it but the upside would be that it be seen as an investment as house prices will only increase and plus i currently have a good salary.

    What about buying a nice house and later letting it out with the permission of the bank?

    I am very confused
  • Vaderkad84
    Vaderkad84 Posts: 8 Forumite
    Could you kindly explain how it would make it difficult eventually buying my own home if i did consider buying a property to rent out first?
  • Moriath
    Moriath Posts: 33 Forumite
    Houses dont always go up in value they can go down as well. So dont rely on that.
  • Moriath
    Moriath Posts: 33 Forumite
    Vaderkad84 wrote: »
    Could you kindly explain how it would make it difficult eventually buying my own home if i did consider buying a property to rent out first?
    You wouldnt be a ftb and so you wouldnt have all the perks that ftb get from the government. Ie less stamp duty etc.

    Also if you still have this house you may have to pay an extra 3% stamp duty as you will own more than one property.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    Vaderkad84 wrote: »
    Could you kindly explain how it would make it difficult eventually buying my own home if i did consider buying a property to rent out first?

    You would be unlikely to get a mortgage. For a property that you are going to rent out you have got to have a buy to let mortgage not an ordinary residential one. To get a buy to let mortgage you would need to already own a property that you live in. The rules concerning buy to let mortgages mean that you can't get one for a first property. So the only way that you could buy a house now is if you get an ordinary mortgage and then you move into the property and live there.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Vaderkad84 wrote: »
    will these properties be taken into account when I am offered a mortgage? There is a possibility at this time my salary would be lower than what I earn now.
    However by that time i may not have the salary that i am on now which will effect my mortgage.

    The housing market will only get worse so i thought i could possibly invest in a nice house now. But the problem would be that i would not be living in it but the upside would be that it be seen as an investment as house prices will only increase and plus i currently have a good salary.


    If you get a mortgage based on the high salary how are you going to afford in on the lower salary?
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