Who would have thought there would be so many rules and regulations in buying a small flat (err, apartment). I have to have gas and electricity inspection certificates, lodge the deposit with a goverment registed scheme, credit check my tenant, tell the tax man about my new income - and if I screw up one step I could be prosecuted, fined AND have to give the tenant 3 months rent back as compensation!!!
Further, making it all add up to "profit" is doing my head in. Not only do I have to give te goverment a huge wod in capital gains tax when I eventually sell up, trying to work out exactly what I can claim back is proving impossible. Anyway, I'm determined - if others can do this, I can. I want to have given up work in 5 years. This will be my job!
Sunday, 15 July 2007
Friday, 13 July 2007
Mortgages, argghhhh!
Actually, I found it easier to get a buy-to-let mortgage than getting a mortgage approval for my main home. It seems this is because where landlords are concerned, the banks don't care about your income or expenditure or anything else other than: How much is the rent? and Does it cover the mortgage payments?
As we'd found (by doing research!) an apartment with a low purchase price and a good rental income in a saught after development, those questions satisfied the banks easily enough. All sorted then? Er, no.
Slight problem - the apartment block is not a new construction, it used to be council flats bought by a developer and then "renovated" into swish apartment blocks. Oh no, the banks did not like that one bit.
My mortgage brokers are still searching for a deal we can accept, but so far the interest rates are ridiculous because of this stupid point. Looks like we might have to let this baby go and make sure we view "new construction" apartments and not refurbs!
It's most annoying because we've done our research and the rental income versus purchase price can't be beaten on City View......stupid banks!
As we'd found (by doing research!) an apartment with a low purchase price and a good rental income in a saught after development, those questions satisfied the banks easily enough. All sorted then? Er, no.
Slight problem - the apartment block is not a new construction, it used to be council flats bought by a developer and then "renovated" into swish apartment blocks. Oh no, the banks did not like that one bit.
My mortgage brokers are still searching for a deal we can accept, but so far the interest rates are ridiculous because of this stupid point. Looks like we might have to let this baby go and make sure we view "new construction" apartments and not refurbs!
It's most annoying because we've done our research and the rental income versus purchase price can't be beaten on City View......stupid banks!
Viewings!
Viewings are always the easiest part of any property search, you either love it or hate it - there's rarely any in between. We recently decided to become landlords and buy out first buy-to-let (before we've even finished doing up our main home, I might add). So, we viewed a reasonable apartment in Manchester, called City View - surprise, surprise, it has a view of the city!
So, now onto the hard bits........getting it for a price we can afford, sorting the finance and getting a tenant in it double quick!
So, now onto the hard bits........getting it for a price we can afford, sorting the finance and getting a tenant in it double quick!
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