AIBU to consider this buy to let "affair" abroad, and a bit spooky!
oreoxoreo · 26/10/2018 14:49
I am a long-term immigrant to the UK and a single parent of 2 DC.
I have a moderate mortgage and low LTV on my own house, and well budgeted but ok-ish lifestyle. I keep thinking I ain't going to get a much better career (my DC come first and their dad is not overly involved), but I've got this unused borrowing power and my ability to borrow about 70k more.
A flat came up for sale in the country of my origin, in fact with a tenant readily in, good central location, and I thought that might work out as a good investment? Spookily enough, the flat number is the same as my house (not common number), the road name has a very close meaning to my UK road name and the location of the flat on that road very closely resembles the location of my house in the UK (let's say both are 4th courtyard on the right side). You would think this is a sign from above!
This made me thinking, 70k additional mortgage (remortgaging my own home), repayable about £300pcm for 25 years while rent would be around EUR 350pcm. I don't expect much profit and I consider all extra factors (exchange rates, Brexit, wear and tear, taxes, tenant issues etc.) but still the idea is that the mortgage will be repaid mainly by tenants in 25 or less years and I will have a property that I could sell later and divide between my two DC.
Would you do it?? It is very tempting. Especially for the spooky reasons of the flat no. and location, and the road name. Seems like it is meant to be??? I am not rich by any means and I haven't got much disposable income left at the end of a month, but I overpay my own mortgage by £300pcm.
If I don't do anything I would be mortgage free within 10 years but would likely to feel I have not done much with the money I could have borrowed...
Lost, what should I do?
Upslidedown · 26/10/2018 16:31
The answer is based on your attitude to risk. The risk takers on Mumsnet will no doubt say go for it, the ones that have heightened fears will say never and many who fall between will ask questions.
What is right is how you feel about it. I would however suggestion caution at your evidence gathering being based on anything woo. This is an investment question not an emotional one.
anniehm · 26/10/2018 16:59
Who would look after the flat eg sort out repairs, look for replacing tenants? The cost of a rental isn't just the repayment price. It sounds tempting to me but you need to consider the affordability of no rental income is received for six months - if it's manageable still then the risk to your financial security is low
ApproachingATunnel · 26/10/2018 17:08
Nah, dont fall for supposed ‘sign from above’. Have you got someone reliable to look after the property and sort out any issues in your home country? How about adfitional cost such as repairs, issues with tennants etc etc? Would you be able to afford it? Would you be able to cover the mortgage if tenants stop paying?
Those are things to consider. House number, street name etc has no relevance.
MakeItRain · 26/10/2018 17:14
I agree - ignore all the 'signs', they mean nothing. You need to consider worse case scenarios - it remains empty, massive payout needed for a huge repair, tenants trash it, and if you think you can manage emergencies then consider it.
For me the distance would put me off. I have friends with buy to let properties and over the years have had all sorts of emergencies to deal with requiring them to be onsite frequently. Do you have someone local who could manage that for you?
oreoxoreo · 26/10/2018 17:17
My parents live next door, they would be able to help for the next few years (not forever).
If I have issues with tenants, I can stop overpaying my own mortgage and pay towards the abroad flat mortgage.
FruitCider · 26/10/2018 17:32
Is the property in a desirable area? Is it likely to go up in value? Is €350 a month affordable in the country? X
oreoxoreo · 26/10/2018 17:51
Yes it is in desirable area but there might be a ceiling to how much rent I can get.
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