Updating post from Reddit.
Has a 23 year old living at home is it worth buying a buy to let with siblings, I’m 50/50 with the idea has the ROI won’t be much it will just be tenants paying down the mortgage.
Entirely up to you. If I was in your position then I'd be more concerned about buying my own place to live in rather than using my parents for that purpose while I benefit from BTL.
FYI My parents are the ones pushing for me to BTL
I would say just think about yourself and your security first, investments are worthwhile, your own gaff included, so definitely consider prioritising it since it gives you equity in a roof over your head. You're at an age where it is ideal to prepare for that.
Tie yourself to a BTL mortgage and, depending on circumstances, you may struggle to get another if you buy a place yourself.
I started by buying a house and having people living with me - free accommodation from me and it paid the mortgage.
Usually a friend and a student lodge.
No.
Poor returns
High hassle
Losing first time buyer discount
Just for my own knowledge; if a FTB purchased a BTL in a limited company. Surely they keep their FTB benefits?
They would. But they’d pay secondary stamp for that purchase (as you always do in a ltd co)
They would yes; but then there's the added hassle of submitting a separate set of accounts and record keeping!
Definitely a terrible idea at so many levels. Given Stamp duty hit on your own home and other things you will be losing a hell of a lot of money. And have you done any training to become a landlord (thousands of hours to understand the law). Massive risk zero reward. And you might well find that it will be the tenants paying down your real terms capital loss - not "paying down the mortgage" -- (the great myth that rents are dead money just paying down a mortgage for someone else).
I'd rather make use of lifetime ISA to benefit as a first time buyer when it comes to buy my own place but it's totally up to you and depends on your financial situation I guess. I somehow doubt returns are very good especially on a shared property
A good thought is to buy a property that you can use as your home if property management doesn't work out.
This way you're buying your "own home" but renting it because you live with your parents.
You did say you are buying with your siblings. Do any of your siblings own homes? If any of you become the buyer, the buyer doesn't pay the stamp duty tax (being a first time buyer). After that, the other siblings also get their First Time Buyer Stamp Duty Tax.
Did you sign up to the NRLA? Does any one in your family have experience in property management? Do you have a mentor? Quite honestly, the media, society and the government HATE landlords. They hate us because we're one of the biggest cogs in society. Getting rid of us will cause MASSIVE discourse and they hate how they can't just ban all landlords.
You have a better chance and support from society by trading stock.
If you want to become a parasite rat then this would be a great move.