Singing Pig

Pod,

 

I see you feel so strongly about it you posted twice!

To put my comment about 'doing something' in context, it is ment to be motivation for buzz to look into it further and not give up.

To qualify my reasoning, I know a few students in manchester who have done this. Bought 60-80k houses as PPR's and renting spare rooms out. Incidently these are the type of properties the average student might rent for up to £450 pcm, except they would be paying someone else's mortgage.

It can work, with a bit of strategic planning and common sense.

 

there are very few houses left in the £60-£80k range which are within a decent distance of M/Cr univ. and those you can find, tend to be in the worst possible areas - so if you are going to do this  - do consider who will buy the property from you when you decide to sell. 

Also check out with Environmental health as they  are tying to designate at least 4 of the cheapest areas as "ALL rental properties will need to be licensed" - under the optional licensing part of the 2004 Act which is just being enforced. These areas include Moston and Gorton and i cannot remember the others.

 Also check on the councils demolition plans - as there are several regeneration/CPO areas also within the cheapest housing areas.

 best of luck

 

cheeks,

i think buying a property as a student, with no real income ... no deposit ... no experience or knowledge ... at today's prices ... is, frankly, crazy.  the risk buzz is taking, should things go wrong, could land him in deep financial trouble.  the boiler blows up ... roof needs repairing ... etc ... how is he going to afford that?  what happens if the lodger doesn't pay up?   even self-certing income, how on earth could he legitimately self cert a £100k mortgage with a part-time £100 a week job?  and, even £80k would only buy a tiny 1-bedder, or, a run-down 2-bedder ... where's the cash for the renovation going to come from?

i'm all for taking calculated risks ... but to take on the responsibility of property ownership when in such a precarious financial position ... surely anyone would question this?  surely it is far better for him to save his cash, finish university debt-free, and assuming he gets a reasonable £18-20k permanent job, save up 5% deposit plus funds for closing costs, a small contingency fund and furniture ... and kick on from there? 

buzz - enjoy uni ... use your £100 a week to stay out of debt ... get a good degree and a decent job ... read SP ... and then go for it.  save yourself a lot of stress and hassle ... the property market will still be here!

Guys i would go for it if i did what people told me to i would be skint! Take the risk or be a student skint flint. its very unlikely that the boiler will blow up and in Manchester there are cheaper alternatives like in Openshaw where a 2 bed terrace can cost you 75k and the rent is 450. etc.

I think that propertygoal84 is being a little optimistic - it is good business sense to always think about the worst case scenario.

 I am overly cautious and I admit that in some cases this has stopped me from making the most of some opportunities that have come my way, however, I am also 23 doing a PhD with a couple of BTL properties, no student debt, and no parental financial backing.

You can be cautious and succeed, even if it is at a slower pace than some!

Being 22 with 5 years experience in the market i wouldn't talk too optimistic without backing my suggestions. Be cautious obviously but are you saying not to invest Sara? you've got a couple and your a student? who's being optimistic?

I'd never say don't invest!

I just thought that saying "the boiler is highly unlikely to break down" is being a bit optimistic. On one of my properties the boiler broke down earlier this year and they are pricey to fix.

 I managed to get mine sorted quite cheap (my partner is an electrician with contacts) but it was still expensive, you need a contingency in business.

I don't take risks, which is why my partner and I have recently bought a property (to live in whilst refurbing). So that we can cut our expenses whilst doing the work, and then hopefully sell on at a profit.

 We would like more buy to lets, hopefully can fund the deposits through the profit from the refurb, but we do not want to over gear ourselves! We accept that we're not going to be multi-millionaries anytime soon, but we are happy at our own pace.   

Hey i like what your saying Sara but i said its unlikely the boiler will "blow up" which 2 of my gas engineers mates have also never seen happen.