I inherited half a house recently and am in the process of buying my sibling out. First of all we were going to sell it and I arranged valuations, etc. then I decided I'd buy it.
I need a 70k BTL mortgage which the bank has said I'll get no problem.
I have a tenant lined up, someone I know. And I do trust that she'll look after it.
But I know that long term she won't stay there....maybe two years. After that I'd be looking for tenants. I keep hearing horror stories on here and in real life of nightmare tenants, or just the general expense, etc of a BTL.
My mortgage repayments would be £470 a month and rent £600. So after tax, insurance there's not a lot of money to save each month for repairs, new carpets, etc.
so short term I think it might at times cost me money and that's not even thinking about empty periods.
Long term I'd have the benefit of someone else paying my mortgage off. In 15 years I'd be mortgage free and could maybe think about retiring earlier than 67.
I worry if I don't buy this house that I will be working till 67. But then it would be nice to have some money now and enjoy life a bit more rather than having to be careful all the time.
If I don't buy the house I now feel I'd be letting down my friend who's excited about moving in and also my brother who's waiting for his money. Though he'd get it after we sold the house I guess.
Interest rates are meant to be rising. So that worries me a bit about the mortgage. If we sold the house I'd end up with about 70k cash, which I could try and save most of it I guess so I might be able to retire at 60 if I've got good savings still. And rising interest rates may help grow the money.
Then I think well I could try the buy to let and if it doesn't work out I could sell it down the line.......
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I'm meant to be signing a buy to let mortgage next week and am getting cold feet
198 replies
GalaxyInMyPants · 20/07/2014 08:39
OP posts:
Sleepysheepsleeping ·
20/07/2014 10:28
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