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Becoming a homeowner whilst serving

SpannerRat

Lantern Swinger
Hi all,

I've seen a similar thread but my question is slightly different.

I'm prepared for some "don't be so stupid" answers but as someone with no experience of even renting yet.. bare with me here.

I'm going to be moving out for the first time this year into a room in a house somewhere nearer work and have been thinking about the future, wanting my own house etc and how that will fit into being in the RN.

I've been saving up every spare bit of cash into fixed rate ISAs etc and in a few years will have enough for a decent deposit.

What I was thinking of doing was to buy a house and get a mortgage whilst serving, and rent it out while I'm on deployment, keeping one room secured for myself for when I'm on leave and renting it out as a "room in a house" but with the added bonus that the tenant will have the house to themselves other than when I'm not on deployment or if I'm alongside and within traveling distance etc. I've seen similar room to rent ads from BA employees etc who are away from home 4/5 days a week..

How plausible a plan is this? I know there are they issues of the tenant possibly trashing the place but I guess I'd have to get an estate agency involved to handle things for when I'm away. Any thoughts? Common pitfalls?

Thanks
 

bollotom

War Hero
Sucks in breath... It isn't an easy life style. There's lots of hoops to jump through and you won't be in residence for some periods thus trusting your tenant(s) will treat your property with respect. You'll be responsible for repairs, general maintenance and health and safety with gas, appliances, water supply, council tax, probably taxes on rental income and a whole host of other bits and Roberts. As well your mortgage provider may prevent you from doing this. Have a read of the link below, which just touches on some aspects but try to get all the legislation under your belt or it could end up as a bad experience. And best of luck

Property Hawk - Online Software for Landlords
Guide to being a landlord - Gocompare.com
 

SpannerRat

Lantern Swinger
I suppose the other option is to rent it out to a friend or relative, e.g someone I can trust not to party every night and set it alight..! Thanks bollotom
 

Snowman91

Lantern Swinger
It seems like a good idea mate.

You'd have to consult with an estate agents to hammer out all the fine print and details, get landlord home insurance etc but over all sounds like a good idea.

A piece of advice though I would stick to renting it to adult working professionals as opposed to students. My folks rented out their house to students for a few years when they retired in USA and when they returned the house was trashed; cigarette burns everywhere, broken "hidden" furniture, cannabis plants growing in the garden, the list goes on and on. Not putting a downer on students, it's just the minority giving the majority a bad reputation.
Saying that it's your house do what you want with it.
My plan (in theory) is to get SFA, then ssave for a deposit on a mortgage and rent that house out while I'm serving and living in SFA. That was at the end of my career I'll have a house to live in with most if not all of the mortgage paid off.
 

SpannerRat

Lantern Swinger
Snowman91 said:
That was at the end of my career I'll have a house to live in with most if not all of the mortgage paid off.

That's my thinking too. Good idea about the non student thing. Where I live with my folks, we used to have a family next door but now have all sorts living there, they change week by week, probably about 6 people in there at a time, would hate to think of the mess in there and costs of the landlord refurbishing it every time as he seems to be doing.

Cheers
 

Waspie

War Hero
You can pass the responsibility to a letting agency who will look after your property for you. The down side is they will charge you for the service but it does take direct dealing with tenants off you. My son lived in a property in Plymouth where the owner was a Lt Cdr but he had dealings with the letting agency who my son dealt with for all things relating to the property.
 

Snowman91

Lantern Swinger
Waspie raises a good point. When my folks rented out their house, because they weren't in the country they had a relative look after the property for them i.e. deal with tennant complaints/issues and sort out all problems. This can be cheaper than getting the letting agent to sort out everything for you, but then you would be in business with family/friends which can have the capacity to end sourly and sever family ties for a while, where a letting agent is unemotive and operating on what's best for their client, being you, as you are paying them x amount per month.
It's a risk either way you go but is best to have someone responsible and reliable watch over the property in your absense whom you can trust to do the right thing for your interests. Personally if a relative or friend lived close to the property who was happy to do this and who you trusted I would choose them, but it's ultimately whatever you're most comfortable with.
 

Waspie

War Hero
The advantage with a letting agency you have recourse if things do go wrong as the responsibility for the property becomes theirs!
 

SpannerRat

Lantern Swinger
Very good points guys. Unfortunately I've had experience of family members turning sour when money and responsibility is involved and it didn't end nicely! Agency all the way, that way if they don't do their job properly, you can deal accordingly :) Cheers!
 
G

guestm

Guest
A lot of Service Personnel people do this, it's a sound plan. Just make sure it's somewhere popular to enure you always have a tenant in, use the Deposit Protection Scheme and get a letting agent to do all the work for you. Don't forget there is an excellent help to buy scheme for Service Personnel which is basically an interest free loan of half your annual salary that can cover or add to your deposit.
 

Purple_twiglet

War Hero
Moderator
Good to do - but my advice would be buy somewhere you will never want to live in again. I've just sold a flat I used to live in but rented for a few years for a tidy profit. The tax return is a pain to do if you get over a certain amount on it, but the income is nice to get used to. I'd try and buy in an upcoming area, rent it out, then sell it after a few years and pocket the profits to buy somewhere you actually want to live.

Walking into what was your home and seeing the state people have left it in can be quite emotional!
 

SpannerRat

Lantern Swinger
Montig said:
A lot of Service Personnel people do this, it's a sound plan. Just make sure it's somewhere popular to enure you always have a tenant in, use the Deposit Protection Scheme and get a letting agent to do all the work for you. Don't forget there is an excellent help to buy scheme for Service Personnel which is basically an interest free loan of half your annual salary that can cover or add to your deposit.
Didn't know about that.. Cheers! I've wanted to use the civvy help to buy scheme but it's only if you want to buy, not buy to rent.

I assume this is something I can find out about once I'm in?
 

Topstop

War Hero
Walking into what was your home and seeing the state people have left it in can be quite emotional!


Next door rented to Merchant Navy, Foreign, at the School of Navigation Warsash, part of Southampton University.
They had an end of course party, being good Mooselimbs there was no alchohol. Yeah right, big food fight, Curry up the curtains,walls and ceiling but nothing on the ceiling of the kitchen though because one of them had had a bath and left it running and that ceiling was now the kitchen floor.

Make sure you are insured, the deposit only dinted the cost of repairs

They seemed all right, polite and not noisy apart from the odd taxi door slammed on a W/E at O crack stupid o`clock
 
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