laughing_goat Posted March 14, 2006 Share Posted March 14, 2006 Did you know that the Bath Building Society are targeting students as potential BTL landlords? "It is based on the idea that the mortgage would be covered by rent from the spare rooms."At the end of the day, it will help students get into the property market. "It will also help parents, who will have the peace of mind of knowing their children are living in decent quality housing." Not sure a student house could necessarily be guarenteed as 'decent quality housing' owned by the student or not. http://www.channel4.com/4money/news_feed.j...11142267181A000 Quote Link to comment Share on other sites More sharing options...
benjamin Posted March 14, 2006 Share Posted March 14, 2006 good quality proposition, just like these Quote Link to comment Share on other sites More sharing options...
DonnieDarker Posted March 14, 2006 Share Posted March 14, 2006 didnt read the article but in today's metro that was some headline about students being offered 100% mortgages... Quote Link to comment Share on other sites More sharing options...
homeless Posted March 14, 2006 Share Posted March 14, 2006 surely just another spin on the parental guarrantee.Been haping since the 80s ie the parents put there house up as collateral Quote Link to comment Share on other sites More sharing options...
zag2me Posted March 14, 2006 Share Posted March 14, 2006 Lots of my mates did BTL when they where at uni, they did very well out of it and have since traded up to bigger and better things. Basically they bought a 3 bedroom terrace and charged rent to 2 mates while they basically lived in it for free for 4 years. The capital gains on the house when they finished uni where huge and set them up for life basically. It worked for them back then, but I wouldnt imagine getting any appreciation these days. Quote Link to comment Share on other sites More sharing options...
laughing_goat Posted March 14, 2006 Author Share Posted March 14, 2006 Lots of my mates did BTL when they where at uni, they did very well out of it and have since traded up to bigger and better things. Basically they bought a 3 bedroom terrace and charged rent to 2 mates while they basically lived in it for free for 4 years. The capital gains on the house when they finished uni where huge and set them up for life basically. It worked for them back then, but I wouldnt imagine getting any appreciation these days. I think you are right, students will not be able to pay anything like what is required to make up the mortgage repayments in this day and age (even a group of them sharing). This may be affordable (but rather stupid) for a landlord who has another form of income, but a student has either no, or little other income (part-time job/loans). I can only assume this shortfall would have to be made up by the (anything for my little darling) parent. I can think of far more pleasurable ways of throwing away my money. Quote Link to comment Share on other sites More sharing options...
murpaul Posted March 14, 2006 Share Posted March 14, 2006 (edited) I think you are right, students will not be able to pay anything like what is required to make up the mortgage repayments in this day and age (even a group of them sharing). This may be affordable (but rather stupid) for a landlord who has another form of income, but a student has either no, or little other income (part-time job/loans). I can only assume this shortfall would have to be made up by the (anything for my little darling) parent. I can think of far more pleasurable ways of throwing away my money. So, no more FTBers no more BTLers no more bonus fuelled investors no more SiPPs based investors students?????????? When are the lenders going to give up? Edited March 14, 2006 by murpaul Quote Link to comment Share on other sites More sharing options...
devslim Posted March 14, 2006 Share Posted March 14, 2006 So, no more FTBers no more BTLers no more bonus fuelled investors no more SiPPs based investors students?????????? When are the lenders going to give up? You can't get any lower down the scale than students. Quote Link to comment Share on other sites More sharing options...
Down with the BBC Posted March 14, 2006 Share Posted March 14, 2006 You can't get any lower down the scale than students. How about LL, such as TTRTR Quote Link to comment Share on other sites More sharing options...
backtoparents Posted March 14, 2006 Share Posted March 14, 2006 didnt read the article but in today's metro that was some headline about students being offered 100% mortgages... Could 100% mortgage require some sort of guarantor? Can't believe they'd take on that sort of risk without a chance to bite into some more property. btp Quote Link to comment Share on other sites More sharing options...
nodumsunreader Posted March 14, 2006 Share Posted March 14, 2006 You can't get any lower down the scale than students. Unemployed HPC advocates in 2 years time . No wait a minute that WOULD be mad. Quote Link to comment Share on other sites More sharing options...
laughing_goat Posted March 14, 2006 Author Share Posted March 14, 2006 Unemployed HPC advocates in 2 years time . No wait a minute that WOULD be mad. Really, I expected more from you. No, wait a minute, that WOULD be mad. Back to the real topic... If the son/daughter 'owns' the house and lives in it, would there be some sort of tax saving as far as the 'rent a room' scheme (rather than it being a BTL) and if the house was sold when the son/daughter moved out? In the past student BTL's had to be owned by the parent, incurring various tax liabilities. I don't nessesarily think this is a bad thing as whether the house is bought by the child or parent it is to provide a home (I suppose that's vaguely true). On the whole, I do think it stinks though. An 18 year old with no income, getting a £100,000+ loan! The parents having to cough up the repayments if the 18 year old and his/her mates miss the repayments (hmm, how likely is that to happen?). Eventually, when the parents can't afford the repayments and the house is worth ??% less than they bought it for, the bank get the house and the parents life savings? Quote Link to comment Share on other sites More sharing options...
Guest boredwaiting Posted March 14, 2006 Share Posted March 14, 2006 Lots of my mates did BTL when they where at uni, they did very well out of it and have since traded up to bigger and better things. Basically they bought a 3 bedroom terrace and charged rent to 2 mates while they basically lived in it for free for 4 years. The capital gains on the house when they finished uni where huge and set them up for life basically. It worked for them back then, but I wouldnt imagine getting any appreciation these days. I lived in two student houses owned by the students (backed by mum and dad) - they also did very well. I remember when they were selling - they couldn't believe how much they made (if only the waited another 5 years ) But they did get a good footing on the ladder - it's a way to go to university and not get left behind. My friends from school who didn't go to university have their own houses, married and have kids. I am getting married this year. I am way behind... However I am the second out of my 'crowd' at uni to get married. One of the landlords in my student days (not really a friend, more of a mate) is married and has one kid.... I think there is a lot more about having a home and being settled than having equity and value. Although the risk of negative equity and being trapped scares me - people who are getting on with their lives don't let this bother them.... and as we know there is no day of reckoning on the horizon.... Quote Link to comment Share on other sites More sharing options...
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