House Price Crash forum: Ftb Not Living In Your Owned Property? - House Price Crash forum

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Ftb Not Living In Your Owned Property?

#1 User is offline   samtheman 

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Posted 19 February 2012 - 11:35 PM

When FTBs look to buy their own place, they appear to always plan to live in it immediately and give up on renting.

If I don't see buying property in the area I live in as a good idea (because of overpriced property), but see that property in other regions/countries is more interestingly priced, would it ever make sense to buy a flat/house in that area and rent it out until I choose to move?

I am sure that there are obvious calculations that show that living in your property is better than renting it out and renting a different property but I'm not sure I can see it... any clarity that anyone could provide would be useful.

#2 User is offline   Russe11 

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Posted 19 February 2012 - 11:53 PM

thats right, buy in london, rent to live else where... you can NOT lose :-D

#3 User is offline   samtheman 

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Posted 20 February 2012 - 12:27 AM

View PostRusse11, on 19 February 2012 - 11:53 PM, said:

thats right, buy in london, rent to live else where... you can NOT lose :-D


Actually I was looking at the other way round. I'm not sure I currently want to put all my money into a property in London.

#4 User is offline   trippytinker 

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Posted 20 February 2012 - 09:22 AM

Properties may be cheaper outside London & the SE but it doesn't mean that they sell any easier. You could find yourself with a property that you cannot sell very easily.

#5 User is offline   AC44 

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Posted 20 February 2012 - 02:04 PM

Seeing you want to do it the other way round, is there rental demand in the area you want to buy?
And what about loosing your FTB status? Is that an issue?

I was thinking the same, since I can see that the house prices in SE/London have not corrected yet while in other areas there is correction going on. However it all depends if you are planning to live in that area in the future.
If no, I surely dont want to be a BTL-er or actually not allow someone who lives in the area to get a better price for the house they are looking.

#6 User is offline   samtheman 

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Posted 21 February 2012 - 12:02 AM

View PostAC44, on 20 February 2012 - 02:04 PM, said:

Seeing you want to do it the other way round, is there rental demand in the area you want to buy?
And what about loosing your FTB status? Is that an issue?

I was thinking the same, since I can see that the house prices in SE/London have not corrected yet while in other areas there is correction going on. However it all depends if you are planning to live in that area in the future.
If no, I surely dont want to be a BTL-er or actually not allow someone who lives in the area to get a better price for the house they are looking.


I was actually thinking of abroad, possibly where my girlfriend is from (it's not that unlikely that we end up there) but there's always quite a big chance that we might not end up there and indeed I would have become a BTLer.

The idea would be to put a large enough deposit so that most of my monthly expenditure would be my rent rather than mortgage payments.

Do the numbers actually add up?

When you are a FTB who purchases the place you live in your outgoings are the usual mortgage payments + bills related to that property

In this other setup where you rent a second property, outgoings are: (mortgage payments - rental income + bills related to the ownership of the property) + (rent + bills related to living in the rented property).

It's not obvious to me that one makes more sense that the other. Obviously your finances are a lot more straightforward in the first case.

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