Article Score0

My partner and I want to buy a home but finances are tight, so we were thinking of buying with a mortgage, then renting the house out to hopefully cover the cost of the mortage + giving us a little extra income (maybe), while we live with the parents and work and study as usual. Is this a good idea?

11 Thoughts on Is buying our first home with a mortgage to rent out a good idea?
  1. Reply
    April 12, 2012 at 2:19 am

    i suggest u
    i hope it will be helpful in resolving your problem keep using

  2. Reply
    April 12, 2012 at 2:21 am

    Dear see this site
    I believe it will be helpful in resolving your problem keep using

  3. Reply
    Caveat Emptor
    April 12, 2012 at 3:01 am

    Bad idea. If you are still students, you shouldn’t be buying real estate at all. Too risky.

  4. Reply
    April 12, 2012 at 3:04 am

    I don’t know about mortgage laws in Britain but in America it would be hard to get approval for a loan and insurance on such a property without already owning a house.

  5. Reply
    April 12, 2012 at 3:50 am

    Don’t do it.
    For one thing you will need a hefty down payment to buy a home.
    Don’t forget:
    Closing costs which costs thousands
    Home insuracne
    Property taxes

    Most people that make real money at this, pay for the home in cash and rent it out. – no loans.
    26% of homes bought last year in America were paid for in cash.

  6. Reply
    April 12, 2012 at 4:15 am

    We looked into this at one point but its just too risky. You might just about cover your mortgage – but what if you have a tenant that disappears without paying rent for 6 months, what if the boiler breaks – YOU are liable for it, what if you can not find anyone to rent it for a couple of months, what if the tenant really messes up the house and causes damage? Unless you really have a good cushion – dont do it, the margins are just too small…….. we worked out we would have to have full tenancy EVERY month for it to work – and thats just too risky.

  7. Reply
    April 12, 2012 at 4:57 am

    The biggest criterion for whether you should even attempt this may be whether your temperament is suited to being a landlord.

  8. Reply
    April 12, 2012 at 5:26 am

    Well first of all, unless you are super rich and can pay in cash, which is pretty much everyone, you are going to need a loan to buy the home, aka mortgage. Do not assume you will make money. Most often the rent you can get for the property won’t even cover the mortgage payment.

    Also, most new home loans to get you the lowest interest rate requires you to physically live in the property for 2 yrs. That means you couldn’t rent it out. If you do and the lender finds out, they can call in the loan meaning you have to pay the full amount remaining.

    Where you make money is in the appreciation of the value of the property over time and the added benefit to reduce your tax liability on your income tax return.

  9. Reply
    April 12, 2012 at 6:25 am

    You are dreaming; lending criteria is different for investment properties, you will need at least 20% down and the rates are much higher. As a first time buyer you would not be in any position to purchase a rental property, you would not be approved for one anyway because you have no experience as a landlord; which lenders are requiring in many cases.

    Forget the idea, it’s not going to happen.

  10. Reply
    April 12, 2012 at 6:30 am

    You would need to speak to a mortgage lender to see if they will go along with this anyway. You can’t just let out a property that you bought – you have to have the lender’s permission, and if you don’t get it then the insurance on the property is void – that can land you in deep financial trouble. Also, unless you buy a property very cheaply then you are unlikely to make enough of a profit to make it worthwhile.

  11. Reply
    April 12, 2012 at 7:17 am

    “but finances are tight”

    Not a good idea, as there is more to it, read here:

    Leave a reply

    Register New Account
    Reset Password