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Mortgaging a flat to rent out.
Former Member
Posts: 1,876,323 The Mix Honorary Guru
I know someone considering doing this. The flat's only about £30k, he reckons a few years paying off the loan will then see him earning good money off the flat on top of ordinary employment.
Sounds good in theory, but does anyone have any experience of this in practice? I've heard elsewhere becoming a landlord is not as easy as it may seem - there are various complications and burdens apparently.
I'm considering doing likewise after Uni. I reckon it's quite possible to spend a number of years working in order to pay off mortgages while living off a minimum then just sitting back and watching the profits roll in?
Sounds good in theory, but does anyone have any experience of this in practice? I've heard elsewhere becoming a landlord is not as easy as it may seem - there are various complications and burdens apparently.
I'm considering doing likewise after Uni. I reckon it's quite possible to spend a number of years working in order to pay off mortgages while living off a minimum then just sitting back and watching the profits roll in?
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Comments
:eek2:
It's in Cumbernauld - a boring as fuck 'new town' North of Glasgow where everyone is either a junkie or a commuter. Even the 'middle class' areas are the epitome of the suburban nightmare. Horrible place.
Sounds great, can I rent off you
First of all unless you have other security buy-to-let mortages are more expensive than usual ones (because they are more risky). Therefore it will cost you more and you'll make less money than you might think.
Secondly if you get your tenant through an agency that will cost you, and if you want the agency to garentee the person that costs even more. So most small buy-to-let people just risk it that the person doesnt trash the place.
Plus of course you will have to do things like tax returns, building insurance...etc. So there's quite a lot of paper work to be done.
Dont expect good returns on your investment monthly, most buy-to-let people dont make much (if any) money on the rent, they make money on the flat itself.
If you are wanting to do this your best option is to go to a developer and promise to buy one early on in the build, they'll give it to you 10 maybe 20% off retail price to make sure they have a buyer. That way you get a new flat cheaper.
I would take a long term view of this though unless your investing in a very up and coming area....