Buying a house (and renting)

Fed up talking videogames? Why?
User avatar
No:1 Final Fantasy Fan
Member
Joined in 2008
Location: UK

PostRe: Buying a house (and renting)
by No:1 Final Fantasy Fan » Sat May 21, 2022 11:08 am

That's something i didn't do when buying my current flat. I would have given a much lower offer otherwise.

Anyway got my new ceiling up yesterday and so far it's defintely an improvement. Will tell in time.

User avatar
Victor Mildew
Member
Joined in 2009

PostRe: Buying a house (and renting)
by Victor Mildew » Sat May 21, 2022 12:13 pm

N1FFF checking out his new ceiling

Image

Hexx wrote:Ad7 is older and balder than I thought.
User avatar
No:1 Final Fantasy Fan
Member
Joined in 2008
Location: UK

PostRe: Buying a house (and renting)
by No:1 Final Fantasy Fan » Sat May 21, 2022 12:19 pm

Victor Mildew wrote:N1FFF checking out his new ceiling

Image

Lol thanks
With it being a old building the enw height is still above current building regs. So it still feels spacious tbh.

User avatar
Curls
Member
Joined in 2008

PostRe: Buying a house (and renting)
by Curls » Sat May 21, 2022 1:37 pm

No:1 Final Fantasy Fan wrote:Anyone work at a local council?
I want to add a ceiling to my room but apparently I need to pay hundreds of pounds in fees for building control application and a licence of alteration from the freeholder the council although they did confirm no planning permission is required.
All it is is paper work that's going to add hundreds of pounds to the cost of the works. Like they aren't even going to visit my flat to check the works out. Seems really pointless to me.


Always better to ask forgiveness than permission... The dude who lived in my house built a small conservatory on the back without telling anyone. When I bought it it was flagged on the sale as not registered. All we did was pay some fee then to cover some sort of legal costs or something. I asked the seller to split it with me, the twat didn't and I had to pay the lot. Either way though, nothing more has come of it. I imagine it won't be a problem until I come to sell and it's flagged again on the next buyers checks....whom I will gracefully offer to pay half with.

* the cost was between £100-200 I think.

(Disclaimer - This advice is based on no research of your situation.)

User avatar
Drumstick
Member ♥
Joined in 2008
AKA: Vampbuster

PostRe: Buying a house (and renting)
by Drumstick » Sat May 21, 2022 7:29 pm

^ indemnity policy.

Check out my YouTube channel!
One man should not have this much power in this game. Luckily I'm not an ordinary man.
Image Image Image
User avatar
No:1 Final Fantasy Fan
Member
Joined in 2008
Location: UK

PostRe: Buying a house (and renting)
by No:1 Final Fantasy Fan » Sat May 21, 2022 8:44 pm

Curls wrote:
No:1 Final Fantasy Fan wrote:Anyone work at a local council?
I want to add a ceiling to my room but apparently I need to pay hundreds of pounds in fees for building control application and a licence of alteration from the freeholder the council although they did confirm no planning permission is required.
All it is is paper work that's going to add hundreds of pounds to the cost of the works. Like they aren't even going to visit my flat to check the works out. Seems really pointless to me.


Always better to ask forgiveness than permission... The dude who lived in my house built a small conservatory on the back without telling anyone. When I bought it it was flagged on the sale as not registered. All we did was pay some fee then to cover some sort of legal costs or something. I asked the seller to split it with me, the twat didn't and I had to pay the lot. Either way though, nothing more has come of it. I imagine it won't be a problem until I come to sell and it's flagged again on the next buyers checks....whom I will gracefully offer to pay half with.

* the cost was between £100-200 I think.

(Disclaimer - This advice is based on no research of your situation.)


Drumstick wrote:^ indemnity policy.

Thanks for sharing your experience it is much appreciated. I also read about this but didn't get how it worked because it said it just keeps going around in circles. Now I get it thanks, it's basically as you say everytime the property is sold you just have it get indemnity insurance. Good to hear it was only £100-200. Which is a lot less than the £400 that buildling control want as they have to inspect it during and after the works. Thing is it only took 6hrs to install.
Apparently it's needed for plumbing work too when you change the existing plumbing ie installing a new sink in a new location. Which I have done too.
£400 everytime something is done...might as well do it all and as for forgiveness afterwards. Ur right. Thanks again.

User avatar
Drumstick
Member ♥
Joined in 2008
AKA: Vampbuster

PostRe: Buying a house (and renting)
by Drumstick » Sat May 21, 2022 10:02 pm

I've had to get indemnity policies for my last two house moves because the sellers made changes which they either failed to obtain permission for or never got signed off as safe by an appropriate professional.

The policies are pretty simple and relatively cheap.

Check out my YouTube channel!
One man should not have this much power in this game. Luckily I'm not an ordinary man.
Image Image Image
User avatar
Curls
Member
Joined in 2008

PostRe: Buying a house (and renting)
by Curls » Sun May 22, 2022 9:27 am

No:1 Final Fantasy Fan wrote: Ur right.


No-ones ever said that to me before. :wub: :wub: :wub:

User avatar
Sprouty
Member
Joined in 2008
AKA: SillySprout

PostRe: Buying a house (and renting)
by Sprouty » Mon May 23, 2022 9:30 am

In the year and a half since we bought our house, the value has gone up by sixty thousand pounds. Our worries about possible negative equity are long gone, but it really highlights the issues for people who are still looking to get on the ladder.

The silly neighbourhood vegetable.
User avatar
Drumstick
Member ♥
Joined in 2008
AKA: Vampbuster

PostRe: Buying a house (and renting)
by Drumstick » Mon May 23, 2022 9:40 am

Sprouty wrote:In the year and a half since we bought our house, the value has gone up by sixty thousand pounds. Our worries about possible negative equity are long gone, but it really highlights the issues for people who are still looking to get on the ladder.

I was having a chat with a former neighbour over a barbecue at the weekend. For context he's in his early 70s and a lovely bloke but has totally different opinions on the housing market to me!

He sees property as business and does not see why those that can afford to shouldn't be able to profit on renting additional homes out. He has a second house about a mile away which he rents out to two ladies.

What he said that interested me was that, on the basis of his tenants never missing a payment for years, there's no decent reason that they shouldn't be eligible for a mortgage considering rents are approaching 1.5 times the average mortgage payment (unsure on the accuracy of this figure but generally rents are more expensive). He thinks banks need to make mortgages more viable to renters based on them holding up their end of rental arrangements over a period of time.

I am very much against landlordism but I thought this was a decent point, if someone can afford to rent then they can afford to pay a mortgage. The obvious snag is the difficulty is saving up for a deposit but is a deposit really all that necessary and should it as a must-have requirement be consigned to history?

Check out my YouTube channel!
One man should not have this much power in this game. Luckily I'm not an ordinary man.
Image Image Image
User avatar
OrangeRKN
Community Sec.
Joined in 2015
Location: Reading, UK
Contact:

PostRe: Buying a house (and renting)
by OrangeRKN » Mon May 23, 2022 10:10 am

Not being able to save a huge deposit because you're paying 1.5 times the average mortgage payment on rent is the whole point

Image
Image
orkn.uk - Top 5 Games of 2023 - SW-6533-2461-3235
User avatar
Kezzer
Member
Joined in 2012

PostRe: Buying a house (and renting)
by Kezzer » Mon May 23, 2022 10:16 am

even with a 100% mortgage houses are going for over the asking price, which means you have to have even more cash at hand.

This post is exempt from the No Context Thread.

Tomous wrote:Tell him to take his fake reality out of your virtual reality and strawberry float off


Image
Image
Image
User avatar
Tomous
Member
Joined in 2010
AKA: Vampbuster

PostRe: Buying a house (and renting)
by Tomous » Mon May 23, 2022 10:17 am

OrangeRKN wrote:Not being able to save a huge deposit because you're paying 1.5 times the average mortgage payment on rent is the whole point



Yep. The rich want to own everything and rent it out to the poor so they can squeeze a little more profit out.



Everything wrong with the housing market could be easily fixed if the Government really wanted it.

Image
User avatar
Curls
Member
Joined in 2008

PostRe: Buying a house (and renting)
by Curls » Mon May 23, 2022 11:01 am

So, does anyone on the forum rent out a house/second home? Or is it seen as immorally wrong? I mean my house...I'll never actually live in it. My dad lives there, he maintains it and gives me a small amount of cash (about 50% of rent in the area) so when he dies, what will I do, rent it to someone else or sell up? I'll likely have my own place I actually live in by then, so this will likely be a second home.

User avatar
Sprouty
Member
Joined in 2008
AKA: SillySprout

PostRe: Buying a house (and renting)
by Sprouty » Mon May 23, 2022 11:10 am

From a lending perspective, I do understand the need for a deposit. The risk of a decline in value puts the banks at risk of a loss in the case of repossession. This is reflected in the fact that the higher loan to value mortgage you take, the higher the interest rate. The problem is simply supply and demand. If there were enough houses, there would not be a fight over every one that came on the market. We were viewing houses on the first available day when we were looking and continually up against multiple other offers on day one of a house coming on the market.

Every scheme to help first time buyers just seems to push prices up further. More council houses would help. Those who need to rent shouldn't be paying as much as it takes to have a mortgage and a higher supply of affordable rentals would squeeze the private rental market and make more of those homes available for buyers.

The silly neighbourhood vegetable.
User avatar
Lex-Man
Member
Joined in 2008
Contact:

PostRe: Buying a house (and renting)
by Lex-Man » Mon May 23, 2022 11:13 am

Curls wrote:So, does anyone on the forum rent out a house/second home? Or is it seen as immorally wrong? I mean my house...I'll never actually live in it. My dad lives there, he maintains it and gives me a small amount of cash (about 50% of rent in the area) so when he dies, what will I do, rent it to someone else or sell up? I'll likely have my own place I actually live in by then, so this will likely be a second home.


My girlfriend is pregnant at the moment so I think I'm going to move in with her at the moment. I'm thinking about renting the house as I would like to keep access to the basement and garden of my place and my brother lives with me. I would try to only rent my bedroom although this could be tricky legally speaking as I kind of lose access rights. Would probably sell at some point though.

Amusement under late capitalism is the prolongation of work.
User avatar
Stugene
Member ♥
Joined in 2011
AKA: Handsome Man Stugene
Location: handsomemantown
Contact:

PostRe: Buying a house (and renting)
by Stugene » Mon May 23, 2022 11:16 am

Curls wrote:So, does anyone on the forum rent out a house/second home? Or is it seen as immorally wrong? I mean my house...I'll never actually live in it. My dad lives there, he maintains it and gives me a small amount of cash (about 50% of rent in the area) so when he dies, what will I do, rent it to someone else or sell up? I'll likely have my own place I actually live in by then, so this will likely be a second home.

Sell it and don't be a piece of gooseberry fool.

Image
Taint
User avatar
Sprouty
Member
Joined in 2008
AKA: SillySprout

PostRe: Buying a house (and renting)
by Sprouty » Mon May 23, 2022 11:59 am

Stugene wrote:
Curls wrote:So, does anyone on the forum rent out a house/second home? Or is it seen as immorally wrong? I mean my house...I'll never actually live in it. My dad lives there, he maintains it and gives me a small amount of cash (about 50% of rent in the area) so when he dies, what will I do, rent it to someone else or sell up? I'll likely have my own place I actually live in by then, so this will likely be a second home.

Sell it and don't be a piece of gooseberry fool.


Surely people still need to rent though? It's a property for somebody to live in either way. I would say the more important thing is that if you decide to let, be a good landlord. Budget for repairs if required and get them done as quickly as you would if you lived there. Ensure you can let it out for as long as the tenants may wish to live there (as a forced move is horrible as tenants). Be reasonable with rent demands and accomodating of their lifestyle as much as you can without risking damage to the property. Allow pets, even if you ask for a slightly higher deposit or similar to protect yourself. And get landlords insurance.

Or you could sell, overpay on your own mortgage and bring your payments or term down, or invest the money.

I appreciate the apparent contradiction between this and my previous post talking about shortages of property pushing up prices, but there is also a shortage in the rental market. We had the same experience renting as we did buying, viewed on day one and had to compete with several other people to secure it.

The silly neighbourhood vegetable.
User avatar
Curls
Member
Joined in 2008

PostRe: Buying a house (and renting)
by Curls » Mon May 23, 2022 12:19 pm

Aye, the rent in the area according to Zopla is £800 PM. My dad and step-mum put £400 in a pot every month. They cover bills and maintenance for me. I tell them to use the money in the pot for me to do any more expensive house repairs (doors, windows, boilers etc). So basically...I'm forcing them to save up for a rainy day, I don't actually use the money. I recently messaged to tell them to dip into this money also if cost of living bills get too expensive.

It worked out well really, my dad couldn't afford to live in the area anymore, so this way he gets to live where he wants, and I've managed to get on the housing ladder whilst I've been overseas for the past few years.

In the future when he does go, I probably will rent it, but I'll do the calculations fair and cover only what it costs me...-ie maintence-landlord insurance the rest. I imagine I'd still be able to keep it well below the rental prices for that area. So if it were on today's standards I recon it'd be £500 or £600 per month compared to the £800 suggested.

User avatar
RetroCora
Member
Joined in 2022

PostRe: Buying a house (and renting)
by RetroCora » Mon May 23, 2022 12:31 pm

Only thing I'd say is don't underestimate how tough it can be landlording to private tenants. My mum and dad rented their old house in Blackburn out when we moved to Scotland(the market was very different in the 1990s - they couldn't sell it! They both worked in social housing and had no interest in being private landlords) and two different sets of tenants wrecked the place, there were all kinds of issues with maintenance and the whole thing was a disaster.


Return to “Stuff”

Who is online

Users browsing this forum: Garth, Grumpy David, Hesk, Peter Crisp, Red 5 stella and 429 guests