First Time Buying A House

numark1 · Scared of girls Joined: 10 May 2004 Karma :

I was told yesterday by my bank i can have a mortgage up to £60,000. I was talking to my parents and they sugguest i should take it out and buy a property to get on the ladder.

Being 18 this is pretty scary, i would apparently buy it and let it out while i am at uni, probably never live in it but use it as an investment.

Done a bit of research, they seem to let (for what i may buy) for about £375-£500 a month. The mortgage would be about £350-£400 a month so i could pratcially not have to pay a thing. Oh i also gather you have to pay a couple of grand in legal fees etc.

I know it may take a while to get tennants in and actually paying the mortgage wouldn't be that much of an issue in the short term (ie 6 months) it will always be paid but my mum said that apparently if i buy to let i need a deposit of 25%.

Bit of a cunt as i would have to pay 15k upfront, or does anybody know a way around it.

Still early days and i might not go ahead with it but it seems like a good idea because i will have a property and will cost next to nothing.

Kickstart · The Oracle Joined: 04 Feb 2002 Karma :

Hi

Deposit is likely to be high. You will have a load of extra costs as well. Such as the commision to the letting agents. You will need to spend money fixing the wear and tear on the property.

To be honest your best best would be to consider doing this now in the town where you will be going to uni.

Remember that house prices can go down as well as up.

All the best

Keith
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..... · Quote Me Happy Joined: 15 Jan 2005 Karma :

Also factor in unexpected costs for when you are actually letting the place out.

You need to have the money to sort these problems out straight away . It's not like you could leave a problem as you might if you were living in your own house - you have to be able to sort them at very short notice.

Other than that go for it, I did it when I was a couple of years older than you and was great Thumbs Up

numark1 · Scared of girls Joined: 10 May 2004 Karma :

I will have support with money if i need it and the house is in a shit part of town to where my other parents house is, which is also about 30 minutes from my grandpa who could go down if there is any problems.

Bit of a scary thing having a mortgage at my age also i will have no real job security at uni (going to be selling clothes again, and as much as i can make alot of money from it i lost it all last time Confused

)

Skunkcap Freddie · Brolly Dolly Joined: 20 Oct 2005 Karma :

you need to keep in mind you'll have solicitor fees to pay and other bits and pieces. i'm buying a apartment with my brother at the moment and the fee's are gonna be close to £1000 if not more. thats also cheap as my brother is friends with a solicitor and he's fixing his computer for him too

Itchy · Super Spammer Joined: 07 Apr 2005 Karma :

renting out is fine to pay the mortgage , but there are downsides bigs big ones ,

Things go wrong boilers / heating / plumbing / electricals / tenants get gassed (carbon monoxide for WHICH YOU under duty of care are liable for which means a detector in each room with a gas appliance tempo ones are £2 which last 3 months permanant ones are £50ish).

Such that if you are like Stinkwheel and can fix all that sort of stuff on your own bat then do it , if you can't and have to get outside support and contractors to do it then you might not make much if any at all.

I'd also add that constant changes in laws mean that DIY electricals are not against the law.

But I reckon you should go for it.

Ste · Not Work Safe Joined: 01 Sep 2002 Karma :

What'd you get for £60k? Confused

Do you have other means to pay the morgage if necessary?

Seems slightly daft that you're looking at buying property here, whilst complaining in another thread about having to live in shared uni accomodation. Buy a house and live in it yourself if you can afford one. Laughing

It does seem a good idea because you'll have a property but it will cost you, remember that house prices can go down just as easily as they can go up.

numark1 · Scared of girls Joined: 10 May 2004 Karma :

McGee · O RLY? Joined: 24 Jun 2005 Karma :

I would like to do the same at 19, my mate back in the UK is already in the middle of buying one Shocked

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colin1 · Captain Safety Joined: 17 Feb 2005 Karma :

when u spoke to the bank about what mortgage you could get, did u let them know it was a buy to let mortage you need, or did they ask about what you earn ?

buy to let mortgage just goes on what you could rent it for.

i know your mum suggested putting a 25% deposit down, but i doubt that all buy to let mortgage providers wd ask for that

if think it wd be good to hold some back in savings as emergency money in case there is a problem getting tenants or you have a problem tenant, so you can still pay the mortgage

a letting agency will take a big cut, but they have experience spotting who is going to be a bad tenant, speak to a few and pick one you trust

i have been looking into buy to let myself as i was thinking about doing it with some cash im due to get in a few months.

I think initially it could be quite risky but is probably quite good over the long term. Unfortunately I know two people who tried it and had loads of hassle and decided it wasnt worth the aggro, and risk for the limited returns. I guess it depends on what tenants you get and what the demand is like in your area.
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Cillit-BANG · World Chat Champion Joined: 05 Oct 2005 Karma :

It may not be as simple as it sounds, otherwise everybody would be doing it.

Out of interest, how can you get a mortgage if your at uni, surely you need to prove your income of some sort in case you have no tennants and need to make payments yourself.

Are you sure there are buy to let schemes in your area. I know for a fact that there are no companys in Nottingham giving buy to let mortgages because the market is so saturated and people just cannot find tennants.

For £60K I very much doubt you will ever find a propery nice enough to let for £500 a month. To give you an example in Lincolnshire, a £125K house lets for about £450 pcm.

colin1 · Captain Safety Joined: 17 Feb 2005 Karma :

by me, a £70k house rents for £400pcm which makes it worth doing if you have decent tenants

i think the best option for mark, wd be to have a student house so the other students pay him rent and he lives there with them

they have to sign tenancy agreements etc
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fuzz · World Chat Champion Joined: 24 Mar 2004 Karma :

cc123 · Geez a joab? Joined: 17 Jan 2005 Karma :

Just bought my first place with my GF......

At your age I never even considered it. All well thinking that you can get on the property ladder but at your age and circumstances I wouldn't bother as it could turn sour and leave you in the sh1t.

Took me a while to get round to doing it but me and my GF had money behind us, we both have good well paid jobs and we both plan on living in the place meaning any fcuk up's are our own and not someone else.

Just my thoughts........
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