Hi,
I have found a brand new 2bedroom flat in upminster, Essex. It is up for sale at £150,000 (75% ownership). On top of that they are asking for £100 rent per month towards the last 25%.
I think this still seems really cheap as the location and the quality of the flat are 1st class.
They were on the market orignally to be sold outright for £250,000 but they havent been sold???!?!?!
Also is it in my league? I earn £21,000 a year and have £5,000 savings.
I am considering it as a buy to let as I am only 20 and life at home is still far to comfortable!
Any advise would be great.
2006-10-17 02:30:35 · 5 answers · asked by ******:-) 1 in Business & Finance ➔ Renting & Real Estate
Sorry but you don't earn enough to borrow for the Mortgage, I have a 2 Bed 50% share @ £69,000 I earn about the same as you and I could only get a mortgage up to £72,000. as a rule of thumb its 3 1/2 times your income
It is a sad state of affairs but as a first time buyer you have very few options when it comes to a Mortgage, I have had mine for 10 months and my half has gone up £ 8,000 already.
It's taken me a while to get on the property ladder but I know when I sell on it will be well worth it for my next house.
2006-10-17 02:51:22 · answer #1 · answered by draytondon 4 · 0⤊ 0⤋
Is this like the American, rent to own program? I do not know anything about the British money system so I cannot help you on whether or not you can afford it. If this is like the American system, there are about 4 things I can suggest (1) make sure you have a contract that shows that you will own 75% of the flat. (2) the flat cannot be sold w/o your permission (3) you have first dibs on buying the other 25% and (4) find out if the rent is going toward buying the flat.
2006-10-17 02:47:42 · answer #2 · answered by bettyswestbrook 4 · 0⤊ 0⤋
Obviously you need to get a solicitor and get them to look into this for you to make sure everything is advantageous for you.
I used to work for the NHS and they offered shared ownership schemes, except that when it came to selling, any profit made would go to them - so you wouldn't get back any money that you spent on the property.
Be wary. Or just go for somewhere that you own 100% and is more within your means. The market is going up all the time, so you'll be able to make money and move somewhere quicker in no time.
2006-10-17 02:40:28 · answer #3 · answered by Wafflebox 5 · 0⤊ 0⤋
I think that this is within your league! As your still living at home, I'm presuming that any rent you pay (if any) is remarkably low.
Seems like a good investment to me! I'd go for it!
2006-10-17 02:39:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You dont earn enough to cover the cost.
2006-10-17 02:38:50 · answer #5 · answered by Annie M 6 · 0⤊ 0⤋