Buying house but may not stay in the area

Discussion in 'General Property Investment Discussion' started by steveburns, Sep 25, 2018.

  1. steveburns

    steveburns New Member

    I am thinking of buying a house in the area where I currently work. I have a 4 year contract and have enough money for the house deposit whilst keeping a considerable amount in my savings. Unfortunately I am not sure wether it is a good idea as I may quit the job within the next year and may leave the area. I have already delayed buying a house for a year due to being unsure about the job and now just want to buy somewhere to get on the ladder. If I left the job I would be likely to move to London where I would not be able to afford a house anyway and therefore I want to do something with my savings.

    I would only want to buy the house in this area if I can rent the rooms out to lodgers. Whilst I live in it this would be easy, however If I left I am not sure what would happen with the mortgage if I left and continued to rent the rooms out (apart from my own). If I left my job it would be in the next year, and my plan would be to keep one of the rooms as mine and rent the other two out on Spareroom. I would then use the house on the odd weekend as I would still have my room.

    My question is, would I still be able to count the people renting the rooms as lodgers rather than tenants if I am not at the house much? I would not be buying elsewhere and would look to turn the mortgage to buy to let as soon as possible, as in a few of years I would hopefully have enough to buy somewhere else. I heard you need to wait a couple of years before turning it into buy to let if you left the area. The house is in a very good location and a place thats easy to rent (centre of a major UK city). It is worth currently around 130k so it is not a huge risk as an investment even if I did leave and need to sell it in a few years and has 3 rooms so I would rent out 2 (each for £350 including bills).
     
  2. diyhelp

    diyhelp Active Member

    There are a number of questions you need to ask yourself:-

    - Would any "lodger" pay rent without some kind of agreement - I dont think so
    - How would you manage the property if you moved? Letting agents - then there are fees to consider
    - How would you fund your accommodation if you moved to a different area for your job?
    - I am pretty certain you would need to tell your mortgage company if you took in tenants - but worth checking out

    Until your own career/working path is clearer I would be inclined to hold back. Also, with Brexit I dont think we are likely to see a boom over the next year - if you life path becomes clearer within this period - so house prices are not likely to be significantly higher.
     
  3. steveburns

    steveburns New Member

    The only issue is I have not bought a house in any area because of having to move around for jobs. I finally have this job with a 4 year contract, and there is a chance I will stay the whole time, but i am just not sure at the moment. I want to invest my money somewhere and since the area I am in is low risk due to general low prices of houses I thought it won't be a big risk.

    However your point about Brexit makes sense. I would try and manage it remotely and when I am there fore the odd weekend.
     
  4. Adam Chapman

    Adam Chapman New Member

    I'd agree with DIY help - until you have a clearer picture of the career path before making a cement decision. Brexit is likely to make the road rockier, in nothing else but uncertainty.
     
  5. nmb

    nmb Well-Known Member

    While your £130k should be relatively secure looking to the longer term, the short term might be a little rocky. Personally I would hold off until you know what you are doing - you may also find that Brexit concerns might knock a few extra pounds off the value of property in the short term. Do you really want the hassle of managing a buy to let property from potentially hundreds of miles away?
     
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