kennett Posted May 12, 2014 Report Share Posted May 12, 2014 A bit of advice from those wiser than me would be much appreciated! My wife is 3 1/2 months pregnant with our first and our one bedroom cottage will soon be too small. This is where things get confusing, do we sell up and buy a bigger house, in a slightly more urban setting than is ideal, or do we keep our small house,rent it out and take up my employer on their offer of a house on the estate at half market value rent, possibly making us money every month?!?! Help Quote Link to comment Share on other sites More sharing options...
fenboy Posted May 12, 2014 Report Share Posted May 12, 2014 (edited) A no brainer for me, get yours rented out , house prices are on the rise as rents will be , your existing place will be going up in value while someone else is paying the mortgage! Plus By renting out you have something to fall back on if something went wrong with your employer. Edited May 12, 2014 by fenboy Quote Link to comment Share on other sites More sharing options...
toontastic Posted May 12, 2014 Report Share Posted May 12, 2014 +1 what fenboy said. Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted May 12, 2014 Report Share Posted May 12, 2014 A no brainer for me, get yours rented out , house prices are on the rise as rents will be , your existing place will be going up in value while someone else is paying the mortgage! Plus By renting out you have something to fall back on if something went wrong with your employer. +1 Quote Link to comment Share on other sites More sharing options...
HDAV Posted May 12, 2014 Report Share Posted May 12, 2014 do you own the one bed outright? or are you paying a mortgage? Quote Link to comment Share on other sites More sharing options...
kennett Posted May 12, 2014 Author Report Share Posted May 12, 2014 No still paying a mortgage,rent at work would be less than mortgage. But the main problem is it will be more difficult to get a mortgage for a bigger house in future as the Mrs will be going back part time, so do we do it now while we can? Quote Link to comment Share on other sites More sharing options...
novice cushie shooter Posted May 12, 2014 Report Share Posted May 12, 2014 As above what fenboy said. Get a mortgage sorted while your both earning as much as you can. We were in the same boat we were in a 2 bed mid terraced and moved to a 4 bed semi with shared equity pre baby no1. Quote Link to comment Share on other sites More sharing options...
HDAV Posted May 12, 2014 Report Share Posted May 12, 2014 No still paying a mortgage,rent at work would be less than mortgage. But the main problem is it will be more difficult to get a mortgage for a bigger house in future as the Mrs will be going back part time, so do we do it now while we can? PRices are rising so are interest rates, renting on estate ties you further to employer, reduced income means its move and struggle or rent and take it easy assuming you can rent the cottage out for more than the mortgage... Quote Link to comment Share on other sites More sharing options...
corkycorksta Posted May 13, 2014 Report Share Posted May 13, 2014 Agree with most of the above, rent it out. But would add a caution - that once (perhaps I should say if !) the current government policies underpinning the housing market change or are withdrawn. Prices are likely to start falling again, as will rents. Like I say this is an if. Add to this the risk of interest rates coming away from the past several years of "emergency" all time historic lows and property values COULD get a double whammy. Pay down the extra you save on your current loan, and a bit more if possible, then if the worse happens you have a strong equity buffer. If the worst doesn't happen your laughing and in a few years when you might need a loan on an another house that equity will get you the best rates and deals. Quote Link to comment Share on other sites More sharing options...
Harnser Posted May 13, 2014 Report Share Posted May 13, 2014 If you rent it out you will have tell your mortgage company and they will alter your mortgage to a buy to let mortgage which will be more money . I would rent it out . Harnser Quote Link to comment Share on other sites More sharing options...
Longchalk Posted May 13, 2014 Report Share Posted May 13, 2014 (edited) If you rent it out you will have tell your mortgage company and they will alter your mortgage to a buy to let mortgage which will be more money . I would rent it out . Harnser +1 It's imperative that you fess up to the current mortgage lender if you are going to rent it. Unless you want a whole lot of trouble later on if you are unlucky enough to have a problem tenant. Edited May 13, 2014 by Longchalk Quote Link to comment Share on other sites More sharing options...
kent Posted May 13, 2014 Report Share Posted May 13, 2014 Depends on the equity in your current home and how easy it might or not be to pay a rental rate mortgage if you get a bad tenant who doesn't pay. If in doubt sell up but make sure you cant spend the money from it or you invariably will when you are settled in the new rented home. Its not funny when you have a tenant who can't / wont pay or you have a period untenanted. Quote Link to comment Share on other sites More sharing options...
malkiserow Posted May 13, 2014 Report Share Posted May 13, 2014 Do your sums for renting and plan for less than 100% rental.... say 11 months per year plus costs of buildings insurance and joining an organisation like RLA who can help with all the legal stuff and forms (they also have a help line). Also budget for some repairs. Then see if it still adds up. Quote Link to comment Share on other sites More sharing options...
kennett Posted May 13, 2014 Author Report Share Posted May 13, 2014 Cheers everyone, it seems simple on paper get some mug to pay your mortgage for you, while we rent and halve our monthly out goings, but there is so much to think about! And just to add another twist, have been offered a better paid job with a house this evening!! Quote Link to comment Share on other sites More sharing options...
woodcock11 Posted May 13, 2014 Report Share Posted May 13, 2014 (edited) If you rent it out you will have tell your mortgage company and they will alter your mortgage to a buy to let mortgage which will be more money . I would rent it out . Harnser VERY GOOD SENSE - you also must tell your house buildings insurers. From personal experience of letting out multiple estate houses, I think [but may be corrected] that it is worth employing a letting agent to act on your behalf - they will wise you up on all the pitfalls of letting and keep you right - be aware too of the Government's deposit security scheme which places the onus on YOU as the landlord to inspect the property on a regular basis to check that all is well - otherwise and if your tenants leave and the house is in a rubbish state, you may not be able to reclaim the deposit to offset your costs. Also and if you allow your tenants to keep pets, consider asking for a two months rather than one months deposit. We have just had tenants leave a two bedroom Estate house of ours. It will need complete redecoration and all new carpets, plus a deep clean of bathroom & kitchen. It was in as new condition when they moved in with new carpets, kitchen & bathroom and complete redec. It will cost us £2000 + VAT to do. Thankfully we have a deposit of £500 and they paid a further £500 rent by mistake when they moved out at the end of April, so that halves our exposure. The muppets phoned yesterday to ask about the refund of the deposit and rent paid "in error" - they can dream on - thankfully [for us] it was before the new deposit security scheme came into force. The moral of what I am writing is - yes of course there are good tenants out there but others will just give you heartbreak and all the more so if it is your own home rather than just one in your portfolio of estate houses. I wish you both the very best of luck with your new circumstances AND with the new arrival...... Edited May 13, 2014 by woodcock11 Quote Link to comment Share on other sites More sharing options...
TDRsniper Posted May 15, 2014 Report Share Posted May 15, 2014 VERY GOOD SENSE - you also must tell your house buildings insurers. From personal experience of letting out multiple estate houses, I think [but may be corrected] that it is worth employing a letting agent to act on your behalf - they will wise you up on all the pitfalls of letting and keep you right - be aware too of the Government's deposit security scheme which places the onus on YOU as the landlord to inspect the property on a regular basis to check that all is well - otherwise and if your tenants leave and the house is in a rubbish state, you may not be able to reclaim the deposit to offset your costs. Also and if you allow your tenants to keep pets, consider asking for a two months rather than one months deposit. We have just had tenants leave a two bedroom Estate house of ours. It will need complete redecoration and all new carpets, plus a deep clean of bathroom & kitchen. It was in as new condition when they moved in with new carpets, kitchen & bathroom and complete redec. It will cost us £2000 + VAT to do. Thankfully we have a deposit of £500 and they paid a further £500 rent by mistake when they moved out at the end of April, so that halves our exposure. The muppets phoned yesterday to ask about the refund of the deposit and rent paid "in error" - they can dream on - thankfully [for us] it was before the new deposit security scheme came into force. The moral of what I am writing is - yes of course there are good tenants out there but others will just give you heartbreak and all the more so if it is your own home rather than just one in your portfolio of estate houses. I wish you both the very best of luck with your new circumstances AND with the new arrival...... +1 The wife is a lettings agent and I've heard some horrific stories of nightmare tenants which you may have to deal with if you self manage......I've heard them call the out of hours phone because a light bulb has gone out and they expect someone to come and change it........ Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.