Becoming a rentier parasite

[Moctezuma]

Being stuck down in Laaandaaan there is not a cat in hells chance that I'll ever get on the property ladder, but I have built up enough of a deposit that I can perhaps get something somewhere else.

 

 

 

So every fibre of my socialist body is being strained here when I say I'll probably look to buy to let and have some other unfortunate pay for the mortgage/cover part of my crippling rent.

 

 

 

So some advice is sought.

 

 

 

A) Does this make me a cunt?

 

B) Is it an inevitable consequence of Britain’s fucked housing market?

 

C) Would average rents in places like Liverpool or Manchester actually allow me to do this?

 

D) Letting agents are utter crooks having dealt with them from the tenants side are they much better as letters?

 

E) I would imagine banks will hardly be jumping for joy at first time buy to lets (having looked around Nat west do one for 4 times your salary)?

 

F) Should I just give up the ghost and move somewhere else?

 

 

[Moctezuma]

Fucking B ) thing

[Mook]

I read something yesterday about this & apparently you need a much bigger deposit if you're renting it out.

 

I don't really think it makes you a cunt & even if it does, I'd imagine London would be enough to turn Mother Theresa into a child murderering rapist.

[Rico1304]

I read something yesterday about this & apparently you need a much bigger deposit if you're renting it out.

 

I don't really think it makes you a cunt & even if it does, I'd imagine London would be enough to turn Mother Theresa into a child murderering rapist.

I doubt she raped but she could definitely be accused of murder

[Teasmaid]

Do it if you're looking for a long term investment, but don't expect to make enough money from it to subsidise your income. Deposits for buy to let are usually between 20 and 40%, and interest rates are higher. The recent changes to mortgage relief will put a lot of people off too.

 

Do shitloads of research, it's a different game from buying to live in a place. I've been looking round ours. It's more profitable to buy in a shit area, than a decent area. A 3 bedroom semi in Birkenhead will rent for about £500-£600 a month. A 3 bed semi in a nearby, sought-after town would only get about an extra 100 per month, but the house would cost twice as much.

 

If you don't already have a mortgage, I'd just get an ordinary mortgage and keep my gob shut about your intention to rent it out.

[Jairzinho]

A) Yes.

 

Didn't read past this point.

[A Red]

Deposits are higher, as said 20% - 40% and any rental income is taxable. Unless its a long term investment based on the value of the house going up, i would forget it. 

 

You could end up out of pocket though when youre between tenants and with repairs and upkeep.

[markcd]

do it, and then get your teeth capped and leave your missus.

[Sugar Ape]

I'm buying a new place which is meant to go though next week and was thinking of renting out the place I've got now.

 

It's probably worth maybe 140k and I've got around 95k left on the mortgage but if you're doing it properly and converting the mortgage to a buy to let one you have to pay to apply to do it, the monthly mortgage price goes up quite a bit and then you've got the hassle of sorting out any repairs etc...

 

Don't think I can be arsed to be honest, I'm probably just going to try and sell it.

[Rico1304]

Do it if you're looking for a long term investment, but don't expect to make enough money from it to subsidise your income. Deposits for buy to let are usually between 20 and 40%, and interest rates are higher. The recent changes to mortgage relief will put a lot of people off too.

 

Do shitloads of research, it's a different game from buying to live in a place. I've been looking round ours. It's more profitable to buy in a shit area, than a decent area. A 3 bedroom semi in Birkenhead will rent for about £500-£600 a month. A 3 bed semi in a nearby, sought-after town would only get about an extra 100 per month, but the house would cost twice as much.

 

If you don't already have a mortgage, I'd just get an ordinary mortgage and keep my gob shut about your intention to rent it out.

Advocating tax evasion, fraud and buying a second home - how times have changed...

[Teasmaid]

Advocating tax evasion, fraud and buying a second home - how times have changed...

It's not strictly tax evasion as I'm assuming he wouldn't be making any profit on it for the next 20 odd years. In fact, it will probably cost him more than he's getting back each month. And it's not a second home, because he hasn't got a first home. Obviously if he sells it in 20 years and has subsequently bought another house, and is living in it, he'd have to declare it as a second home for capital gains tax.

 

You've got me on the fraud part though. To be honest, in his shoes I'd buy a place, live in it, and rent a room out. It saves all the bother.

[Rico1304]

It's not strictly tax evasion as I'm assuming he wouldn't be making any profit on it for the next 20 odd years. In fact, it will probably cost him more than he's getting back each month. And it's not a second home, because he hasn't got a first home. Obviously if he sells it in 20 years and has subsequently bought another house, and is living in it, he'd have to declare it as a second home for capital gains tax.

 

You've got me on the fraud part though. To be honest, in his shoes I'd buy a place, live in it, and rent a room out. It saves all the bother.

You'll be joining the dark side soon enough!!!

[Teasmaid]

You'll be joining the dark side soon enough!!!

As I say, I'm thinking about buying to let, but when I hear about greedy landlords pushing up rents I think I must be missing something somewhere because I can't seem to find anything that the rental income would even cover the mortgage. I think I'll wait till there's another crash and swoop in like a true capitalist parasite.

 

In seriousness though, people do need homes to rent, and people have to own those homes. I've got nothing against that as long as they're being charged a fair rent, and homes are well maintained. The landlords making money will be the ones sticking people in damp-riddled shitholes and charging them a fortune for the privilege. I could never do that.

[lifetime fan]

As I say, I'm thinking about buying to let, but when I hear about greedy landlords pushing up rents I think I must be missing something somewhere because I can't seem to find anything that the rental income would even cover the mortgage. I think I'll wait till there's another crash and swoop in like a true capitalist parasite.

 

In seriousness though, people do need homes to rent, and people have to own those homes. I've got nothing against that as long as they're being charged a fair rent, and homes are well maintained. The landlords making money will be the ones sticking people in damp-riddled shitholes and charging them a fortune for the privilege. I could never do that.

You've obviously not looked in Bristol.

[Tourt]

I rent 4 houses.

 

With good tenants it’s easy money, bad tenants are a nightmare.

 

 

 

I’ve had tenants leave houses with dog turds in the bedroom, bottles of urine in the windowsills, smashed doors and windows, filth in the kitchen and bathrooms cockroaches wouldn’t live in.

 

You get to keep the bond but it never covers the repairs.

 

From Jan this year if the tenant doesn’t pay the water rates, the landlord is now legally obliged to pay all arrears in full.

 

Take some tips.

 

Never rent to dog owners or a family with teenage girls. Such creatures should be confined to kennels and a zoo.

 

It’s where they both belong.

 

 

[Oh Buoy]

B)

[Anny Road]

We left our place in Edinburgh when we headed south and let it.

 

First off estate agents managing your property is just them bouncing calls for 100 quid a month.

 I cant be arsed just now but hang fire.

[Anny Road]

We let our place in Edinburgh when we headed south and let it.

 

First off estate agents managing your property is just them bouncing calls for 100 quid a month.

 I cant be arsed just now but hang fire.

[INTORRESTING]

What's the budget?

[Pureblood]

A) Yes.

 

B )Probably.  More so in the South East.

 

C) Don't know.  Seems complex/ambitious.

 

D) They don't drive around in Aston Martins for nothing.  Not cheap.  

 

E) I guess it will depend on how rich you are.

 

F) Absolutely.  

[Carvalho Diablo]

Fuck it, live within your means, save whatever you're comfortable with, treat yourself and your family as much as possible, don't be shit to other people, but above all just be happy.

 

Pay some other fucker to do the maths.

[Dr Nowt]

Vote Carv.

[Jairzinho]

Fuck it, live within your means, save whatever you're comfortable with, treat yourself and your family as much as possible, don't be shit to other people, but above all just be happy.

 

Pay some other fucker to do the maths.

 

Gay.

[Moctezuma]

Thanks for the advice everyone, still umming and ahhing. I reckon some serious research is needed, still feel a bit like a twat for going down this road,  but I can't see how else I'll get on the property ladder as I'm utterly vexed to buy a share of a house down here and end up paying the mortgage and rent to the other owners.

[Rico1304]

On 21/08/2015 at 10:33, Teasmaid said:

It's not strictly tax evasion as I'm assuming he wouldn't be making any profit on it for the next 20 odd years. In fact, it will probably cost him more than he's getting back each month. And it's not a second home, because he hasn't got a first home. Obviously if he sells it in 20 years and has subsequently bought another house, and is living in it, he'd have to declare it as a second home for capital gains tax.

 

You've got me on the fraud part though. To be honest, in his shoes I'd buy a place, live in it, and rent a room out. It saves all the bother.

Hey, how you doing?