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    I posted a thread like this a year back, but the responses didn't clear anything up... so I'm trying again.

    Please do correct me if I'm wrong but my understanding is, you take out a buy-to-let mortgage, buy a place, put a tenant in that place and charge rent higher than the mortgage repayments.

    It sounds like free money / free house once the mortgage is paid to me? Sure rent levels could fall below the mortgage repayment levels, the difference will never be that huge though, and assuming you have a good enough job to cover the difference you'll be fine. You'll still pocket a house on the cheap once the mortgage is paid off. And c'mon, house prices aren't going to plummet anytime soon...
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    That's exactly what I was thinking. Curious to see what others think of this.
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    I don't have the capital to do so.

    I'm also annoyingly moralistic. I don't want to be land baron... The only time I can see my self letting a house out is if I end up with a property by accident like it being left to me in a will. In which case I may end up renting it, or if I had spare room in my house and needed some money I could rent the room.

    I do fantasize about becoming wealthy and then buying up property but renting it out at council house prices. If I had bill gates type money I would do things like that. Just buy **** loads of property and rent it all out cheep for the plebs and **** the market up for the land lords.

    Who knows what I would actually do if it became a possibility though... Part of me is like I am stuck in this economic system I hate but when I look around no one is interested in trying something different or is actively ****ing me over. In that case I'm all like "well **** you then, I'm stuck in it I may as well make the best of it"
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    Why don't you just let to buy
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    You need money to get a buy-to-let...thats why.
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    Why did you post my future plan on the internet for all these sheeps to see?

    ****, i'm pissed off.
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    TSR Group Staff
    (Original post by TheGuyReturns)
    I posted a thread like this a year back, but the responses didn't clear anything up... so I'm trying again.

    Please do correct me if I'm wrong but my understanding is, you take out a buy-to-let mortgage, buy a place, put a tenant in that place and charge rent higher than the mortgage repayments.

    It sounds like free money / free house once the mortgage is paid to me? Sure rent levels could fall below the mortgage repayment levels, the difference will never be that huge though, and assuming you have a good enough job to cover the difference you'll be fine. You'll still pocket a house on the cheap once the mortgage is paid off. And c'mon, house prices aren't going to plummet anytime soon...
    All a bit easier said than done.

    First off you have to get a mortgage. That means finding a sizeable deposit, a decent credit rating, and of course, a suitable house to buy. The latter of which is definitely not easy if you're not experienced in the matter, and if you end up buying a duffer you're going to be in heaps of trouble.

    Then you need some tenants. Good tenants rarely just jump out of the ground, and chances are you'll need a letting agency involved unless you're willing to risk being 100% screwed over. That eats at your profits. And even with the agency you still have responsibilities which can come back and bite you, such as tenants' unpaid bills. Oh and of course if they move out and you can't find anyone to replace them you're SOL.

    On top of that you have a house to maintain. Over 25 years (or however long your repayment plan takes) the house is going to take a lot of wear and tear. Unless you want the house value to drop (yay negative equity) you're going to be spending a fair bit of your own cash keeping the place in good condition. You'll also be at your tenants' beck and call if there's any problems, including any emergencies. All coming out of your own pocket.

    And of course, if your circumstances change and you can't make the repayments any more, you'll lose everything as the bank will repossess the property and that'll be that.

    Overall there's a great deal of risk involved and no small amount of effort needed over an incredibly long period. You can make decent cash, but it's not free money or a ticket to easy street. If it was everyone would be doing it.
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    TheGuyReturns.
    Hmmm
 
 
 
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