Updating post from Reddit.
Hi All, my girlfriend and I are looking to buy our first house in the North West in the next few months for her work whilst I work from home.
We eventually would like to move to the North East so are buying a house that's more than affordable for us and are hopefully looking to save up for a second home whilst living in the first for a couple of years, eventually moving into house 2 and keeping house 1 to rent out.
Understanding with us moving to the North East for a new, job etc, we should be able to get a consent to let for a couple of years whilst we consider changing to buy to let if the banks force us down that route.
Just wondering if anybody with experience would recommend this idea, it's something I've always wanted to do and appreciate the risks and downsides but overall?
Any advice/experience is welcome.
The killer is maintenance. We afford all ours out of pocket but all ours are cash-bought. If you faced 10K upgrades for new requirements or for repairs, could you find this without thinking? I’d stay out if you need a mortgage to btl.
Do the numbers add up for when you move for the second time? I'm thinking second rate stamp duty, moving to a buy to let mortgage, higher rate tax on the rental income, maintenance costs, letting agent fees and the list goes on?
Very early stages but have considered all of the above costs. It would be a couple of years of sacrificing nice holidays etc, but we should be able to save for a second home including the extended costs. But yeah would need to be able to let on the same mortgage until we can also save for the 25% equity in home 1 to change to a BTL. What i'm really looking for is to have house 1 pay for itself with a rental income for a decade or so whilst our jobs pay for the second home.
I'm not from the north so can't recommend any areas but I would say make sure you are confident in the numbers and add in some risk. People say buy to let is dead which I don't completely agree with. I think it's mostly dead but there are still some spots where you can make it work. Would chucking your excess money consistently in a stocks and shares ISA be better? I wish I had 15 years ago instead of getting into buy to let.
You might want to check all details around your current mortgage deal as you will need to change it to a buy to let.
If you are breaking the term there will be fees to pay as well as brand new mortgage fees to pay on the new BTL.
Still living with parents at present so don't have a current deal, house 1 will be our first home and first agreement so would consider the allowances of being able to let on a normal mortgage with the plan to transition to BTL in a year or two of letting.
You're going to be driving from Newcastle to Manchester when your tenant's boiler breaks in December?
Would like use an agency for management and parents have local knowledge of tradies etc.
You've factored in the management fees for an agency? You're aware several major cities in the region have landlord licensing regimes in areas of cheaper housing with higher costs of compliance?
Why would you do this rather than just stick money in a shares tracker?