I just bought my first property

[maxdacat]

it's a 3 bedroom "purpose built" (ie stalinist school of architecture) in a not so nice part of east london

i won't be living there just renting it out and with the mortgage being only half of the rental income it should be a tidy earner.....the good thing about the UK is they have such a shortage of public housing the local councils will rent back properties they used to own.....i am leasing it to them for 3 years guaranteed rent, no management fee, and all "damage" rectified.

i figure it's something i have to do before i'm 30 or i'll just continue in my high spending ways and not have a cent to show for it later in life!

any other potential property magnates out there?

[moJo]

I would consider buying property, except:
a) I live in San Francisco, where real estate is ridiculous (edit: meaning the location is not worth the price)
B) I live in San Francisco, and I don't like this city, therefore I don't plan on sticking around too long.
c) I plan on racking up a six-figure debt in law school instead.

I want to buy in Manahattan Beach. That would kick ass.

[Faithless]

Originally posted by maxdacat@Jun 20 2003, 07:43 AM
it's a 3 bedroom "purpose built" (ie stalinist school of architecture) in a not so nice part of east london

i won't be living there just renting it out and with the mortgage being only half of the rental income it should be a tidy earner.....the good thing about the UK is they have such a shortage of public housing the local councils will rent back properties they used to own.....i am leasing it to them for 3 years guaranteed rent, no management fee, and all "damage" rectified.

i figure it's something i have to do before i'm 30 or i'll just continue in my high spending ways and not have a cent to show for it later in life!

any other potential property magnates out there?
It's not all about age, but where your finances are at. Sounds like you have the finances under control. Good show!

What's the prospect of renting in a "not so nice part of east London"?

[Emperor_Mike]

Originally posted by maxdacat@Jun 20 2003, 07:43 AM
...any other potential property magnates out there?
Yes. Properties are excellent investments and I recently purchased a small apartment (by proxy) in the Vancouver downtown core. The highrise is still under construction but once it's ready I'm planning on doing what you're doing and renting it out. Last year a friend and I split the purchase of an apartment at Whistler, BC for the sole purpose of letting it out too (we're splitting the rent money 50/50.) It turned out to be a very wise move, as ski season is a marvelous time of year for tourists and people who want to stay at Whistler but hate hotels.

I must admit that I haven't given London a shot. Something to look at I suppose. :)

[tvbdude]

I want to be a landlord someday but I don't have the money and info about becoming one.

[SunWuKong]

Originally posted by maxdacat@Jun 20 2003, 11:43 AM
it's a 3 bedroom "purpose built" (ie stalinist school of architecture) in a not so nice part of east london

i won't be living there just renting it out and with the mortgage being only half of the rental income it should be a tidy earner.....the good thing about the UK is they have such a shortage of public housing the local councils will rent back properties they used to own.....i am leasing it to them for 3 years guaranteed rent, no management fee, and all "damage" rectified.

i figure it's something i have to do before i'm 30 or i'll just continue in my high spending ways and not have a cent to show for it later in life!

any other potential property magnates out there?
wow, that's a really good return. what's your interest rate, and what percent down did you put in?

i own a property in orlando that i rent out. i'm also in the process of buying a second one there and renting it out also. this one would be pre-built. that means it's not even built yet, and i'm buying from the builder.

[teaz0r]

i rent out my flat in bayswater, london. it's a two bedroom (one double, one single) and two baths.

i only rent to people i know, mostly postgrad students from lse, that need a place for a year.

[tvbdude]

can someone tell me how to own a property and rent it out?

[ChairmanMah]

Originally posted by tvbdude@Jun 21 2003, 08:56 PM
can someone tell me how to own a property and rent it out?
in canada, anyone can buy a house and rent it. Except your property taxes will be almost double.

the realtor that sold me my house owns 8 houses.

He makes a bit of money off rent from each house each month. Some more than others.

The thing is, all that rent goes back into the equity. Multiply that times 8 houses, and you could be looking at at least over a million for retirement.

Plus, property values go up, that means free money. And You could just sell one if you needed money.

I'd like to own several houses. Great investment.

[maxdacat]

Originally posted by SunWuKung@Jun 21 2003, 09:21 AM
wow, that's a really good return. what's your interest rate, and what percent down did you put in?

it cost 160k and i put down 5% and my rate is 3.79% fixed for 2 1/2 yrs....after that i can sell or remortgage.....the repayments work out to 480 per (calendar) month and my tenants will pay 1080 p.c.m.

[maxdacat]

Originally posted by teaz0r@Jun 21 2003, 08:48 PM
i rent out my flat in bayswater, london. it's a two bedroom (one double, one single) and two baths.

i only rent to people i know, mostly postgrad students from lse, that need a place for a year.
Bayswater is pretty nice though gets crowded.....i'm in west hampstead at the moment.....are you actually living there or do you rent the whole place out?

[SunWuKong]

Originally posted by maxdacat@Jun 23 2003, 05:48 AM
Originally posted by SunWuKung@Jun 21 2003, 09:21 AM
wow, that's a really good return.  what's your interest rate, and what percent down did you put in?

it cost 160k and i put down 5% and my rate is 3.79% fixed for 2 1/2 yrs....after that i can sell or remortgage.....the repayments work out to 480 per (calendar) month and my tenants will pay 1080 p.c.m.
3.79! that's dirt cheap. and i assume this is a 30-year loan? or more?

in my opinion, you shouldn't sell unless the property is really old and falling apart, and it would cost you a lot of money to fix it up. i'd just keep re-financing it with money out.

[Rogmok]

dang.. 3.79..

the lowest rates i've seen here is like 5.5...

[maxdacat]

Originally posted by SunWuKung@Jun 23 2003, 07:57 AM
i assume this is a 30-year loan? or more?


25 yr actually

[maxdacat]

Originally posted by tvbdude@Jun 21 2003, 08:56 PM
can someone tell me how to own a property and rent it out?
i found that buying a place is a lot of hard work and it can be quite boring....you end up filling out heaps of forms and deal with banks, solicitors, valuers, agents, repairmen, furniture shops etc

as a naturally disorganised person :o i find this all a bit difficult though treat the experience as a learning exercise....you need to do basic things like file all your bank statements and payslips

also i found that paying a few hundred quid for a mortgage broker beats having to go through a call centre at a bank coz you will be calling these people all the time when the deal is underway.

[mrazntre]

Originally posted by Rogmok@Jun 23 2003, 05:45 PM
dang.. 3.79..

the lowest rates i've seen here is like 5.5...
he's in the UK... (are you in the UK)?


check his grammar.

[SunWuKong]

Originally posted by maxdacat@Jun 24 2003, 10:05 AM
i found that buying a place is a lot of hard work and it can be quite boring....you end up filling out heaps of forms and deal with banks, solicitors, valuers, agents, repairmen, furniture shops etc

as a naturally disorganised person :o i find this all a bit difficult though treat the experience as a learning exercise....you need to do basic things like file all your bank statements and payslips

also i found that paying a few hundred quid for a mortgage broker beats having to go through a call centre at a bank coz you will be calling these people all the time when the deal is underway.
oh yes it's incredibly boring. it's definitely worth it to pay someone to explain and sort out all those papers.

[tvbdude]

so basically you go to a mortgage broker and tell them you want to buy a property and rent out right?

[SunWuKong]

Originally posted by tvbdude@Jun 30 2003, 01:13 AM
so basically you go to a mortgage broker and tell them you want to buy a property and rent out right?
no, at least in the US, you'd be able to have a lower downpayment if you say that you're buying your primary home.

[maxdacat]

the bank doesn't know if you are going to be living there or not.....if you are claiming it as your primary home but not living there you may just need to get your mail directed and pay a few utility bills ;)

[jimbo]

Originally posted by ChottoMatte@Jun 20 2003, 10:20 PM

What's the prospect of renting in a "not so nice part of east London"?
East London is an up and coming area as its not far from dockands where all the large financial companies are.

I too live in East London and I bought my house two years ago and its increased in value by 75k sterling since.

Theres always demand for rental income in that area even more so if its within walking distance to a rail station.

[amietron]

<!--QuoteBegin-maxdacat+Jun 24 2003, 06:05 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (maxdacat @ Jun 24 2003, 06:05 AM)</td></tr><tr><td id='QUOTE'><!--QuoteEBegin--> you end up filling out heaps of forms and deal with banks, solicitors, valuers, agents, repairmen, furniture shops etc [/b][/quote]
It's incredibly boring, but it's my job. :cry:

The only remotely interesting part is comparing years of education, salary, profession and assets on the loan apps.

[maxdacat]

All done!

i finally have it all rented out.....be prepared for these things to take a long time

[Yeahman]

wow mortgage is only half the rent? that's hard to find in the US. in nyc and the surrounding areas mortgage + property tax is more expensive than renting. we're in a real estate bubble right now in the US. great time to sell houses. not so great to buy.