Other means of income II
05 January 2004, 05:29 PM
#1
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(follow on from the other tread that went **** up)
Just thinking about letting houses out to students etc..
Would I be able to get a morgage for 100K and buy a house near a uni for 80K or so, do it to a basic standards to comply with health and safety, and make the basic rent/month the value of the monthly morgage payments?
Is there a lot of wrisk with this type of thing? Is it difficult to get started?
If its done correctly, I wouldnt pay a penny towards the morgage but would be 100K better off at the end of it?
Just thinking about letting houses out to students etc..
Would I be able to get a morgage for 100K and buy a house near a uni for 80K or so, do it to a basic standards to comply with health and safety, and make the basic rent/month the value of the monthly morgage payments?
Is there a lot of wrisk with this type of thing? Is it difficult to get started?
If its done correctly, I wouldnt pay a penny towards the morgage but would be 100K better off at the end of it?
05 January 2004, 05:38 PM
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Have you checked out the repayments on a £25k loan?
You'd have to pay it over a long period of time and at a high interest rate unless you're a safe bet with a good, steady income, etc.
You'd have to pay it over a long period of time and at a high interest rate unless you're a safe bet with a good, steady income, etc.
05 January 2004, 05:42 PM
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You will not get a 100k mortgage for a property worth 80k.
In a buy-to-let, I'm guessing that the max mortgage you would be able to secure would be around 60k on an 80k property.
So you are looking at making the deposit of around 20-25% plus whatever is needed in repairs/decoration.
Don't forget to bank some of your rental income towards repairs and maintenance.
Quite a few buy-to-letters on SN it seems, so bump for advice.
EDIT to add, student properties are usually only fully occupied for 37 weeks a year. You typically charge a summer "retainer" during the holidays.
[Edited by class_A - 1/5/2004 5:44:18 PM]
In a buy-to-let, I'm guessing that the max mortgage you would be able to secure would be around 60k on an 80k property.
So you are looking at making the deposit of around 20-25% plus whatever is needed in repairs/decoration.
Don't forget to bank some of your rental income towards repairs and maintenance.
Quite a few buy-to-letters on SN it seems, so bump for advice.
EDIT to add, student properties are usually only fully occupied for 37 weeks a year. You typically charge a summer "retainer" during the holidays.
[Edited by class_A - 1/5/2004 5:44:18 PM]
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05 January 2004, 05:44 PM
#9
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For a start u need to be in permanent employment for a minimum of 6 months and 25k at your age will more than likely need a guarantor i think u need to stop dreaming and get a job.
Ps 100k mortgage would need to be on at least 28k a year
Stick to shelf stacking and buy a tent
Ps 100k mortgage would need to be on at least 28k a year
Stick to shelf stacking and buy a tent
05 January 2004, 05:45 PM
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You would need more than the cost of the mortgage from the rent amount - all unearned income (bar charity) is applicable to taxation, normally at 40 percent.
To get a 100k mortgage on your own/no partner, you normally need to have been working from 6 months to 2 years dependant on lender and earning £25k a year for a 25 year term. There are exceptions, but most of these require you to have other assets, e.g. 2nd house, pension, savings etc.
To get a 100k mortgage on your own/no partner, you normally need to have been working from 6 months to 2 years dependant on lender and earning £25k a year for a 25 year term. There are exceptions, but most of these require you to have other assets, e.g. 2nd house, pension, savings etc.
05 January 2004, 05:47 PM
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as an owner of 10 flats myself , it's one big fukin headache . we are trying to sell ours cos the money we have tied up is not working hard enough by just collecting rent .
05 January 2004, 07:03 PM
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Chaos, I would lend you the money.... however, I doubt you would find my interest rates or collection methods appealing to your work-shy constitution though!
now.... time to drag this thread down into muppets!
now.... time to drag this thread down into muppets!
05 January 2004, 07:05 PM
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You can get mortgages which are supported solely by rental income and not dependant on your wage. You do not need any employment to take these out.
I know of one company that does a product which requires a 15% deposit (i.e. 85 % lending) and rental income of 130% of the mortgage payments.
I know of one company that does a product which requires a 15% deposit (i.e. 85 % lending) and rental income of 130% of the mortgage payments.
05 January 2004, 07:08 PM
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And what are the interest rates, penalties, etc. on those types of deals?
Broken legs and a 400% interest rate?
Those companies that work outside of the 'safe' guidlines are very shady and give even less of a **** about their lenders than the big, established banks/financial houses. They prey on the desperate.
But Chaos seems desperate, so maybe he could be guided along that path of financial ruin before he's 20 LOL
[Edited by fatherpierre - 1/5/2004 7:11:19 PM]
Broken legs and a 400% interest rate?
Those companies that work outside of the 'safe' guidlines are very shady and give even less of a **** about their lenders than the big, established banks/financial houses. They prey on the desperate.
But Chaos seems desperate, so maybe he could be guided along that path of financial ruin before he's 20 LOL
[Edited by fatherpierre - 1/5/2004 7:11:19 PM]
05 January 2004, 07:11 PM
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Interesting, how exactly are you going to payback the 25k loan, and also make the mortgage repayments? a 25k loan over 5 years would be roughly 570 quid a month, not sure on a mortgage, but I'd have thought between 400 - 600 if not more, a month, so you're looking at a rather large ammount of money each month, ok, so you might be getting rent from tennants, but what if they don't pay up? There's a lot involved with being a landlord.
Tell you what, why don't you grow up a bit and just get a job, stop being an idiot and turning your nose up at jobs paying less than 10k a year, we all have to start somewhere.
Tell you what, why don't you grow up a bit and just get a job, stop being an idiot and turning your nose up at jobs paying less than 10k a year, we all have to start somewhere.
05 January 2004, 07:17 PM
#23
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Thinking about it its not practical. Lots of things to possibly go wrong, having to pay up front 15% and it would take years and years to pay back initial mortgage so as to start seeing a profit.
Another idea tats up.
How do you become a drug dealer?
cha0s[
]
Another idea tats up.
How do you become a drug dealer?
cha0s[
]
05 January 2004, 07:24 PM
#27
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You know, when are you going to realise you have to live in the real world and sometimes accept a job that don't pay what you want? hell I really want a job paying 100k a year, but I'm slightly happy with 32k a year. I think your expectations are a little high, and as said before, we all have to start somewhere, and the sooner you do, the sooner you'll be able to progress to higher paid jobs.
05 January 2004, 07:38 PM
#28
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How do you become a drug dealer?
On another note, try the old envelope trick. You'll need an initial outlay of stamps, envelopes and paper. With some clever thinking you can get quite a few people to post you a fiver to a PO Box for 'more information'.
05 January 2004, 07:45 PM
#30
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I have some spare budgie seed Chaos, i.e. hemp, I'm sure you could pass it off as skunk though, in fact, is that some old banana skins I see? (rushes for pipe)