Buying to rent. Should I go for it?

Charisma

I have an offer of buying a one bed flat from someone I know in a slightly rough but not bad area for 160000. Its average sized & nicely done out.
I can put 20000 to it so would be mortgaging 140000. Looking around I can get a mortgage for abour 800 pm . If I could get 900- 1000pm rent would it be worth doing.What are the other costs other than insurance and complex mamagement fees. Secondly I fixed my own mortgage at 3.25% and have 3 years to go on the fix. Can I just add this mortgage to the one I have already at the same rate.

Senna

on the mortgage rates, no you wont be able to add this amount at the rate you already have, you will have to take a separate mortgage out. You might be able to combine both mortgages but that wont be of any benifit to you as you'll lose the very good rate your on.

Also haven't the LTV amounts for buy-to-lets went down, i think you'll need 70-80% for the deposit, so €20k wont be enought, maybe 32k+.

As for buying now, i think most will say your mad, the markets only going one way, down.

the_syco

Charisma wrote: »

I have an offer of buying a one bed flat from someone I know in a slightly rough but not bad area for 160000. Its average sized & nicely done out.
I can put 20000 to it so would be mortgaging 140000. Looking around I can get a mortgage for abour 800 pm . If I could get 900- 1000pm rent would it be worth doing.What are the other costs other than insurance and complex mamagement fees. Secondly I fixed my own mortgage at 3.25% and have 3 years to go on the fix. Can I just add this mortgage to the one I have already at the same rate.

Ye want a grand per month in a "slightly rough" area? Yer mad. People have a hard time trying to sell in good areas.

You're being sold a lemon.

Look in Daft.ie for houses in that area, and check their rent. Now, deduct €100 from that price, and that's how much rent you'll be getting.

AARRRGH

Will you tell us the exact area? We'll be able to give you better advice if you do...