Well, when i need to covince dh first, so help me think of pros and cons.
The house in question belongs to my dad but he's selling as he's got married. So I know the house and know its in a good state of repair. It's a three bed terrace in an area where there's quite a few students for the local teacher training college. I'd say the vvalue of the house is about 120k looking at similar stuff on rightmove, but that's asking prices not what stuff is going for. I don't want to rip my dad off but equally I don't want to pay a full asking price just because he's my dad!
Anyway, house could be rented out to 4 people as its common for the living room to become a bedroom in rental properties of the layout this house is. I've looked at rental prices and they seem to be between £70 and £90 per person, per week for a 48 week rental period. We can sign up to a thing with the college where they'd promote the property to new students. The house next door is always rented out to students from this college.
So say we could get £1200 a month rent. We'd have to pay water rates but not council tax I don't think if they're students?
Main thing will be the mortgage. Looks like we'd have to put down at least a 25% deposit. Dh has that sort of cash but I think that would be most of our savings gone. He's quite cautious so not sure he's going to go for this. He will worry about if we don't rent it then still having to pay the mortgage. Dh is very, very good at DIY so can do repairs though obviously gas, elec would need to be done properly.
Dh doesn't have a pension and is 50yo, I'm hoping that we'd make a bit of money each month from it now and in 20 years time have the mortgage paid off and it all be profit. I'm mid 30s so younger than dh so should be able to get a 20 year mortgage.
Am I bonkers. Any advice from people who have done this?
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I'm thinking of buying a buy to let house - am I stupid?
31 replies
VivaLeBeaver · 08/10/2012 08:42
OP posts:
SeventhEverything ·
08/10/2012 19:17
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