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Entering Property Market - Advice Needed

liam650

So I am planning to mortgage an Apartment for between 50,000 to 70,000 and rent it out to Students and basically let it pay itself. Then potentially purchase more as time goes on etc. All sounds perfect but any flaws in it? I have very little experience when it comes to these sort of things but from what I have seen I have never seen a broke landlord

Any pointers would be appreciated

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myshirt

This will be interesting.

amcalester

How are you going to get a mortgage when you have no job?

And even if you did get a mortgage, how are you going to pay it if a tenant stops paying rent (like you have apparently)?

liam650

amcalester wrote: »

How are you going to get a mortgage when you have no job?

And even if you did get a mortgage, how are you going to pay it if a tenant stops paying rent (like you have apparently)?

Well the plan is to get a job and save for a few years first

amcalester

liam650 wrote: »

Well the plan is to get a job and save for a few years first

Have you paid off your outstanding debt to Littlewoods? Because if you haven't, or don't, then the banks wont touch you.

As for advice paying your bills which includes rent would be a good place to start.

Cuddlesworth

I'm guessing your pretty young.

goldenhoarde

I'm more interested in the apartments that are going for 50/60 grand care to share?

liam650

goldenhoarde wrote: »

I'm more interested in the apartments that are going for 50/60 grand care to share?

3 Bed Apartment for 60,000 rent at 350 a month per room, over 12,000 a year, apartment paid off in 5 years

amcalester

liam650 wrote: »

3 Bed Apartment for 60,000 rent at 350 a month per room, over 12,000 a year, apartment paid off in 5 years

What about tax?
And interest?
And vacant periods, students generally only rent for 9 months of the year?

liam650

amcalester wrote: »

What about tax?
And interest?
And vacant periods, students generally only rent for 9 months of the year?

say between 5 and 6 years then remember the deposit that i will have paid will reduce the mortgage repayment time. During summer months reduce rent, but 350 is only a ballpark number, rents for rooms in this particular area are between 350 and 500 per week so i am being conservative in the estimate

amcalester

liam650 wrote: »

say between 5 and 6 years then remember the deposit that i will have paid will reduce the mortgage repayment time. During summer months reduce rent, but 350 is only a ballpark number, rents for rooms in this particular area are between 350 and 500 per week so i am being conservative in the estimate

Nope, tax alone will eat up to 50% of the rent.

And theres maintenance costs, management fees.

LG1234

liam650 wrote: »

3 Bed Apartment for 60,000 rent at 350 a month per room, over 12,000 a year, apartment paid off in 5 years

Where can I get a 3 bed apartment for 60k with a 12k a year return!?

amcalester

LG1234 wrote: »

Where can I get a 3 bed apartment for 60k with a 12k a year return!?

You can't.

LG1234

amcalester wrote: »

You can't.

I know.

Wesser

Where us there a 3 bed apartment for sale for 60000 that makes 1500 a week? Where?

liam650

Tax is 50%? your having a laugh lol

Stheno

liam650 wrote: »

Tax is 50%? your having a laugh lol

How much do you plan on earning in your job?

Wesser

By the time you pay some tax at the lower rate and some at the higher rate and usc then yeah tax is 40 to 50 %.

liam650

Keeping it on the D - LO id say and all will be perfecto

quadrifoglio verde

liam650 wrote: »

All sounds perfect but any flaws in it? I have very little experience when it comes to these sort of things

Any pointers would be appreciated

This op is the biggest pointer I can give you

[Deleted User]

liam650 wrote:

Well the plan is to get a job and save for a few years first

Any advice you get now will most likely be obsolete in 5 or 6 years time when you might be ready to buy.
I see some comments above from other posters.
If you get a job & save for a deposit, I think you need 20% deposit for a property that you won't be living in,you will need to show regular, consistent rent payments while you save or you won't get a mortgage.
If you have a bad credit rating it'll will take 5 years to clean it up.

myshirt

Liam, just think about all the bright ideas you had a few years ago to start on a road to 1,000 after tax.

And where you are now.

That will give you a feel for the challenge ahead.

Patience.

[Deleted User]

liam650 wrote:

Tax is 50%? your having a laugh lol

50% is correct.

liam650 wrote:

Keeping it on the D - LO id say and all will be perfecto

Property is registered with the revenue the day you take possession of the keys.
You have to register as a landlord. All it takes is one tenant to report you to revenue. When revenue catches you they decide how far to backdate the tax owed & then they add penalties & interest.

You always run the risk of bad tenants. It can take more than a year to evict tenants & they us do not bother to pay rent while you try to evict them. After you do get them out the property might be wrecked. I've seen places trashed. I saw one place where someone peed in the fridge. All carpets and furniture had to go on a skip. All the while you have to pay the mortgage.
You can get good tenants took but you always have to be prepared for the bad ones.

liam650

Hello, so this summer gone I took out a 12 month fixed term lease in a house share, all was grand until a few months back I fell into financial difficulties and couldn't continue to pay rent, so I said look I can't afford it anymore, he didn't take that into consideration at all, I said I will have to vacate the premises as can't afford anymore, he then says he will track me down and bring me to court, well tracking me down homeless will not be easy

So any advice in this situation? Also I checked and the tenancy or any of them in the house are not on the PRTB list and on an off note few months back he refused to put his own name on the heating company bill and wanted one of the people in the house to, even though he is the owner, said we will all go without heating this winter

Mike3549

Who is he? Your landlord or some guy living in the house with you? It looks you are not a tennant, only licensee, so RTB rules do not apply here. Not sure if fixed lease is valid in this case. Even if you are a tennant, you can end fixed tennancy agreement by subletting the place or if landlord refuses to sublet.
By the way, theres no chance he'll bring you to court, that would be WAY TOO EXPENSIVE for him

L1011

So the buy to let idea didn't work out?

https://www.boards.ie/vbulletin/showthread.php?t=2057788407

rawn

Oh look, it's Liam.

The_Conductor

Threads merged.
OP- please, just please.........

Wesser

How would you feel.if somebody wasn't paying you your rent in your hypothetical apartment?

Bananaleaf

liam650 wrote: »

So I am planning to mortgage an Apartment for between 50,000 to 70,000 and rent it out to Students and basically let it pay itself. Then potentially purchase more as time goes on etc. All sounds perfect but any flaws in it? I have very little experience when it comes to these sort of things but from what I have seen I have never seen a broke landlord

Any pointers would be appreciated

Del Boy, is that you?

This lad is gas!

My advice to you would be not to do this, but the decision on this one will be made for you by the banks who won't give you a mortgage due to the bad credit history you have accumulated due to your persistent defaulting

liam650

If the landlord will bring me to court but he hasn't registered the property under the PRTB then surely it will not work?