Buying a house '£120 cheaper a month than renting'

[joebloggs]

New figures released by Halifax show that falling house prices and low interest rates make buying a home £1,440 cheaper a year than renting.


http://www.channel4.com/news/buying-...h-than-renting

[stevewool]

all depends on where you live, and it seems to me that i am lucky where i live,
Rent or buying looks the same , so i should be able to rent mine out once we move

[mickcant]

And there must be an age when it is not practical ?
Mick.

[Terpe]

Also depends on whether a mortgage is available
And if you have the deposit

Mortgages still in short supply by all accounts

[imagine]

wonder if they took into account the loan guard and buildings insurance with buying,

[stevewool]

that can be alot the insurances, i was paying nearly £90 a month extra

[Michael Parnham]

I think all round as things are at the moment also if you are young enough, a mortgage should be cheaper than renting

[malditako]

this is true...we just bought the house we renting in and our mortage amortization would be lower that what we paying for rental fee.

[jake]

Is it worth buying a house in the UK and renting it out? Not mortgage but cash.
I could do research online but would rather hear what you guys have to say.
Thanks in advance.

[stevewool]

if you have the spare cash then why not, it all depends on the area and what you are expecting, but there are lots out there wanting to rent houses

[London_Manila]

Is it worth buying a house in the UK and renting it out? Not mortgage but cash.
I could do research online but would rather hear what you guys have to say.
Thanks in advance.

Depending on the area you purchase the property in
Many people are doing it here and make good money from doing it
You need to have a large deposit most lenders only lending 60%
Property is expensive here
You will be taxed on any rental income
Taxed on any profit you make when you resale the property

Dealing with non rent payers is all part of it (getting them out will take time and expense)
Housing benefit is paid directly to the tenants (they buy booze and dont pay the rent)
After 2 months of non payment you can ask for the money directly from the council
Rents are too high and at some stage the government will be forced to move in (rent caps)
Letting companies will give you all kinds of promises and then do nothing when tenants dont pay

An ongoing scam from a certain west African community
They pay 1 months deposit and 1 months rent in advance and provide bogus references
This is the only money you will receive from them
They know it will take you 6 months to get them out legally
You become engaged in an expensive legal battle
They will only move out once they receive the bailiffs letter from the court
You receive your property back 6 months later in a poor state

A few of the pitfalls above for any future landlord

[andy222]

That is why they are asking for guarantors and 6 moths rent in advance now because of these scum. Its always the same. The genuine ones cop out in the end.

[purple]

Hello everyone.

I wanted to share views on this. As we have let out few properties we got last year. I must say that it all depends in the area. I have looked up northern area.. in Lincolnshire the 3-4 bedroom houses which is about 10-15 minutes walk from town centre area are between 120,000-170,000.

But if you here down south the cost of the properties for 3-4 bedroom houses are between 200,000-400,000.

Rents are the same range all over UK.. between 600-900 for the 3-4 bedrooms.

I must say that as you get older, there are risk and lower chances of getting a mortgage.

These are good investments as the rents will go up and you can always change the interest only to repayments once you are in the position to do so. The good thing about buying properties and letting it out is that the mortgage payments on interest only is around 400. You are still making money after rent, less the service fees and maintenance fees and of course the letting agents fees which is you need to shop around too. As some charges flat 10% for everything while others charge 7% but there are so many additional service and contract fees that it can possibly add up to 12% per month.

It take a lot deal of shopping around and looking for best rates.

My tips are when you buy properties to let out are its proximity to shopping area, train or bus stations, parks, school as it will help to make the rent can go up a bit.

You just need to shop around for good rates for mortgage. I recommend coop if you are banking with them. The banks are a bit cheeky with their rates.

[jake]

Thanks for all your answers
Would definitely be up north as we couldn't afford the southern prices!

[stevewool]

nowt wrong with tup north

[fred]

Hello everyone.

I wanted to share views on this. As we have let out few properties we got last year. I must say that it all depends in the area. I have looked up northern area.. in Lincolnshire the 3-4 bedroom houses which is about 10-15 minutes walk from town centre area are between 120,000-170,000.

But if you here down south the cost of the properties for 3-4 bedroom houses are between 200,000-400,000.

Rents are the same range all over UK.. between 600-900 for the 3-4 bedrooms.

I must say that as you get older, there are risk and lower chances of getting a mortgage.

These are good investments as the rents will go up and you can always change the interest only to repayments once you are in the position to do so. The good thing about buying properties and letting it out is that the mortgage payments on interest only is around 400. You are still making money after rent, less the service fees and maintenance fees and of course the letting agents fees which is you need to shop around too. As some charges flat 10% for everything while others charge 7% but there are so many additional service and contract fees that it can possibly add up to 12% per month.

It take a lot deal of shopping around and looking for best rates.

My tips are when you buy properties to let out are its proximity to shopping area, train or bus stations, parks, school as it will help to make the rent can go up a bit.

You just need to shop around for good rates for mortgage. I recommend coop if you are banking with them. The banks are a bit cheeky with their rates.

We bought 2 properties in Lincoln city center about 9 years ago with the intention of letting them.. We got them dirt cheap.. 3 bedroom terraced properties for 20k each.. Just had to find the 5k deposit and the mortgage was easy to get with no financial questions asked..
Renting them out was a complete nightmare.. We renovated them from top to bottom and they were trashed inside 6 months.. Unfortunately we sold them a bit early for 45k each..If we had held onto them for another 2 years we could of got 95k each..
Crazy valuation that still persists..
IMO,property in the UK is still waiting for a huge correction and I for one wouldnt touch with a barge pole!!
Very risky.

[joebloggs]

i remember over 8yrs ago telling a friend that he was to buy a property after reading in the papers about a property crash that was going to happen very soon

good job he didn't listen to me, as far as i can tell its still not happened

[stevewool]

i brought my house 5 years ago this may , so it was at the top end of the market, i got it cheaper then it was advertised so i was happy, whats it worth now, well i dont care really, its home for me and the family and hopefully it will make me a income when the time comes to rent it and then one day sell it.
I think it would be nice to have another house for the future income but what guarantees do i have for that one being rented to nice people

[fred]

i remember over 8yrs ago telling a friend that he was to buy a property after reading in the papers about a property crash that was going to happen very soon

good job he didn't listen to me, as far as i can tell its still not happened

Problem is he cant sell it! And neither can anyone else in the chain!!
Cant rely on first time buyers I hear as there are no mortgages available...Or jobs to pay the mortgage interest if there were!!
Sounds like a mad house to me!!