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CS111

Renting A Property And Owning A Btl

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Just out of interest, does anyone here own a BTL property but dont own their own house

and are currently renting also?

That's me.

This always proved to be interesting when filling out forms or answering question

Q: Are you a home owner?

A: Yes

Somewhere along the line, something does not compute, then they say "I thought you said you were the home owner"

"No, I said I was a home owner, I didn't say I owned the property in which I live."

Yes, life for me really is that sad.

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Can i ask how/why you bought a BTL but didnt buy your own home, or was it orginally your own home

and you are now renting it out and renting yourself until the market gets back to 'normal?

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Can i ask how/why you bought a BTL but didnt buy your own home, or was it orginally your own home

and you are now renting it out and renting yourself until the market gets back to 'normal?

my wife is foreign, so we bought over there for cash. The idea was that we would stay there when we visited her family. We then decided to rent it out instead and so for the 2 to 4 weeks we would be over there, we would use part of the rent income to stay in a hotel.

I don't anticipate selling it any time soon as it's useful, but even if we were to sell it, it wouldn't have lost money as we bought some time ago. So the state of the market doesn't matter much to me, it's just there if we ever need it.

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I didn't buy to let as such. I bought to live in with the view to becoming a LL when we could afford to upgrade. That never happened as affordability decreased faster than my wages increased and I rented to upgrade instead, fulfilling the renting out possibility for the origin FTB property.

Have to say renting is good (so far), being a LL isn't even though I have good tenants and no mortgage on the property. It really doesn't look after itself even if the property doesn't need maintained, and the latest thing is the gov't is introducing this houses of multiple occupancy regulations, which applies to any building converted into flats (no matter when the conversion), requiring linked fire alarms, various fire controls and escapes in some cases.

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buying a property to rent

and renting yourself can make a lot of sense

for example in belfast you might get say a £750k place for £1000 a month.

if you really want to buy something it would make far more sense to rent this and buy something else where the fundamentals made more sense. eg a £250k one bed in London that rents for £1000 a month

ive no property investments at the moment however should i have fears over my cash i would easily go for the above strategy. even if i feel the need to get out of cash at some stage there are many other markets offer better value than norn iron just now

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Im not very 'up' on these things, still learning ALOT.

How about buying a 2 bed groundfloor flat for £60k, also for cash, which has a tennent

getting £90 per week rent.

I dont own my own home by he way.

Im sure there is some massive stupid point i am missing.

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Im not very 'up' on these things, still learning ALOT.

How about buying a 2 bed groundfloor flat for £60k, also for cash, which has a tennent

getting £90 per week rent.

I dont own my own home by he way.

Im sure there is some massive stupid point i am missing.

I have made a few other lists of good and bad points about renting/letting on this forum, in summary I would say not to do it as an investment unless being a LL is your day job.

A few points;

You have to pay tax on the income (level depends on your total income, ie its 40% above £37K/year or something)

You have to pay the rates

Possibly multiple occupancy registration (£1000s, resulting in upgrades to fire safety)

Advertising (1 months rent+vat) per tenant

EPC/Gas/Electric/fitness certification

Void periods (you still have to pay rates)

No-payment of rent (more likely in a £60K flat)

Personally I think that £90/week is probably about right for now, but it is overpriced for a £60 flat and is only so because of HE subsidies, they are already talking about reductions and more to come methinks. Also is the flat really worth £60K, what is the DCV?

What to do with £60K cash is a hard one, frankly I have a similar quandry. I'm keeping the rental (old home) for next 5-10 years then sell maybe (more it was a backup if lose job), cash is staying as cash but currently considering spending 20K on own business development. My general opinion is that money value is what it is and may well errode over the next few years, my strategy is to spend it on something intrinsically valuable, and to me that is my own business idea (not BTL). IMO 'investments' have no real intrinsic value otherwise those selling them would just borrow money to do the investment themselves. It is a simple gamble and better to invest in something you have control over, which isn't house or rent prices.

Edited by Ride_on

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