does anyone have any experience of this? and if so, is it still financially viable or are too many people doing it? i see a lot of houses for rent but know a lot of young people who have no choice but to rent because they can't get on housing ladder
2007-01-03 05:43:13 · 11 answers · asked by jacksmum 3 in Business & Finance ➔ Renting & Real Estate
oh yes certainly providing its good condition and in a good environment and you are certain everything is in good order as your tenant to agent will forever be on the phone and you'll find more money going out than in so be careful and make sure your letting agent is on the ball and has you fully protected//they will sort the tenant out for character etc you leave that all in their hands Good luck to you go ahead it will be OK
2007-01-03 05:54:05 · answer #1 · answered by srracvuee 7 · 0⤊ 0⤋
It might be if you can find a long term renter. As a rule most renters do not take care of the house they are renting. By the time you pay for the upkeep of the property you will not make much. I watched a housing guru some years ago and he was telling people in the audience that he make $50 a month profit on the house he was renting. Someone said," $50 a month is not much." He said " I know, but I own 500 of them." If you want to form a company for the purpose of owning rental property, there are a lot of tax breaks. If you just want to buy one house to make a profit, you will probably loose it in the end.
This is my opinion.
2007-01-03 14:15:21 · answer #2 · answered by gyro-nut64 3 · 0⤊ 0⤋
many people do do this, but it is hard work too. some of the deals you make are easy, but until you really get into the business, you get a lot of hard ones.
if you have funds extra, and live in a nice home, you can buy another at appraisal value or less and get into it w/5% dn if your credit is good.
the money you pay in taxes each year can be offset to your rental and therefore be putting the funds into your rental rather than into the federal taxes.
the purchasing of a rental stabilizes the payment(providing you get a fixed mortgage) and when property values go up your pmt stays the same. you also reap the benefit of the appreciated value where as a tenant of the landlord, you don't a nd the rental payments go up, but the owners(you) pay't stays the same and the tenant pays for the owners home.
In the long run, you have an investment you needn't feed any longer and in 10-20 yrs you have retire money to actually retire on.
look,look,look, location, location, location, & work work work for the future, future future...if you think you're going to make it in 2 yrs and retire, forget it.
do it right and become independantly wealthy.
2007-01-03 14:14:31 · answer #3 · answered by ticketoride04 5 · 0⤊ 1⤋
I think buying a house is the best idea. I just baught a house last year after renting for 2 years. I got a 80000 dollar house and my mortage is the same amount as my rent. Plus i get 500 dollars back a year for a star program, i get to keep the money when i decide to sell and since i pay interest i get a hell of a tax return. I got 5,000 back last year. So it was very much so worth it.
2007-01-03 13:49:14 · answer #4 · answered by Lipiew 1 · 0⤊ 0⤋
A lot of people are in the same position that's why you now have the option of buy to let mortgages. If you buy the right house, in the right area, you'll find it may turn into the best investment you will ever make.
2007-01-03 13:54:03 · answer #5 · answered by forge close folks 3 · 0⤊ 0⤋
Yes, many people buy houses to get additional income. Screen your tenants carefully and make sure you have a good lease that holds them accountable for any damage. Take pictures before they move in and after. Charge a sizeable deposit. You will be surprised at how much damage some people can do.
2007-01-03 13:52:57 · answer #6 · answered by notyou311 7 · 0⤊ 0⤋
If you already have a mortgage on a house in which you live, you will probably be asked for a deposit of at least 20% on the rental property in order to get a mortgage. On a £150,000 property this is £30,000 cash plus all your costs, so probably £32,000 or so.
2007-01-03 13:47:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, provided you make sure you get respectable tenants. You should get a management from an estate agent to rent the property for you. They will take care of your investment.
2007-01-03 13:56:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It's people buying second houses as rental investments that ensure we can't get on the property ladder to start with...
2007-01-03 14:33:11 · answer #9 · answered by garfet 3 · 0⤊ 0⤋
only if you buy an investment property that you can fix up and make more off of in rent than you pay for your monthly mortgage including insurance and property taxes.
2007-01-03 13:47:10 · answer #10 · answered by ♥♫♥ Crystal ♥♫♥ 4 · 0⤊ 0⤋