What would you do?

MeEsH BaKkA

MeEsH BaKkA

MeEsH BaKkA

Soldato
Joined
12 Dec 2002
Posts
2,951
Hi, I have a lucky friend who has somehow ended up in a house in his name morgage free, I mean totaly all his, no lender his name on the deeds. (lucky sod)

Anyway he wants to "do some thing with it" I.e mortgage it and buy more property, probably buy to lets in a uni town.
What do you guys think? He has a good job and my advice was don't mortgage it, move in and live the dream rent and mortgage free, tho some of my other mates have offers the tempting sell it buy a lambo and live with his mum lol

I can't imagine what it would be like to not have to pay rent/mortgage must be like being at home again but doing your own washing!

Anyway he wants to uses the capital to make more money, ideas ladies/gentlemen?
 
I'd live there - technically he'd be making more money because none of it will go towards rent or a mortgage...
 
I'd start off small, just a 1 bedroom flat or something which rent will cover the mortgage. I'd probably do this separate to the house i.e. deposit with my own money. Obviously while living in the house.
 
Depends on size of property vs amount of rent + location.

If it worked out that I could life comfortably somewhere else and turn over a profit then I would rent it out.
 
Small mortgage, rent the house out buy flat / small house suited for his needs on a repayment over a short amount of years and or something that needs work
 
I think he's pretty certain that it's buying more property he wants. Obviously I don't know his exact finacial situation but the house is 3 bed practicaly next to a uni worth circa 180-200k going by what a local house is selling for he's income is around £40k from what he says but could be bull, I don't know what his outgoing are other than silly nights out every weekend.

I might jump on the lambo bandwaggon and try and borrow it lol
 
I'd just spend money on having it done up really nice and move in :)

Would be brilliant, no rent to pay!

If he's set on getting on the the property ladder, well he can always take a mortgage out and buy a house then sell that one on?
 
Surely someone is out of pocket in this whole situation, and when they audit their books and see a 200k gap they'll come sniffing with a team of suits and wigs?
 
Don't sell it.

Sell it and buy a lambo? That's retarded lol, 5-10 years down the line you'd be kicking yourself for that.

Just keep it and either rent it if it's more space then you need or just live there.
 
Another 'just live there'.

The money I saved, I'd put into a private pension,

Sounds boring .. but believe it or not you WILL reach 60 years old and do you really want to sign off from this life living the last 15 years as a ***** that can't afford anything and is scared of the leccy bill?? (The state pension will stop you starving, but that's about it :/ ).
 
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If it's worth the hassle (can he handle it) and he can get a few houses cheap in good student areas then he could make a large sum (essentially betting) by mortgaging the house and using the capital as deposits on a couple of other houses. As long as they don't need much doing up then he should get enough students in for them to turn a profit (after the mortgage) and quite possibly pay off his new mortgage on the house he has now.

Gamble though. He could end up in 10-15 years with 3-4 houses in his name mortgage free, the start of a student house empire (:p) or a big debt if it all goes wrong...
 
I'd probably sell the house and continue to live with my parents, rent/mortgage aren't the only annoying bills out there: electricity, water, council tax, phone, Internet, cable, household items, heating, other taxes like property tax, etcetc will all bug you too.

I'd simply live in with parents or family for a couple of years while earning interest over the money and still working.

Either sell, or rent it to someone.
 
Sell it, buy a smaller property outright, live in smaller property, invest surplus funds. But then I've no interest in living in a 3 bedroom house.
 
How big is the place?

Possible to move in, and get some friends to move in too, they pay rent, you make money
 
Personally I think I'd live in it. You could save up very quickly with a good job and no mortgage, and have nothing to worry about.

Pretty soon he would be able to afford a mortgage for another property without selling the original house. Which would then pay for itself and more assuming it was in a good location.

Very lucky chap.
 
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