Paying someone's mortgage by renting

[maxilaura]

I've just worked out how much I've paid my private landlord in rent for the last thee years - £33,300.

I can't afford to apply for my own mortgage, but I can afford to pay off somebody elses.

This sucks big time. Every month when the rent becomes due, I get peeved off that I have to fork out to pay his mortgage but I can't even get one of my own.

[skippy]

Ouch ! ..... thats a big rent!

Skips

[the-gnole]

That's buy to let for you unfortunately, the private landlords are creating a pension scheme for themselves in the future.

A few years back (wow, more than a few, more like 10+ ) there were properties in places like Cumbria's west coast that could be bought for under £10,000 for a two bed mid terrace, These were snapped up and rented out at reasonable rent levels to short to medium contractors in the area, even at £60 - 70 a week it was still cheap.

Sadly where you are located isn't the cheapest of places to live and you are now caught in the trap where trying to save for a mortgage is difficult/impossible because of paying the rent

Around 25 miles away

http://www.rightmove.co.uk/property-to- ... 61383.html

[preppingsu]

I can't afford to apply for my own mortgage, but I can afford to pay off somebody elses.

We are in the same boat although not paying quite as much as you. But we would never be able to get a mortgage on this house or one similar with the land that we have, so I just put up with it.

[centralscot]

I am sorry for you that you can't buy at the moment, however the advantage is at least you can upsticks in a crisis or to find work and not look back, it may become an advantage depending on how circumstances pan out.

A large mortgage will become a noose for may people as the economy continues to unwind.

If you are trying to save for a deposit you should consider precious metals, during the hyperinflation in Germany between the wars it was possible to by a small farm for 1oz of gold. Poor returns on savings, high inflation and banking system instability mean that saving money at the moment is difficult and any purchasing power one way on another will return to the banks or the government not to you.

Look into "wealth cycles" you will find precious metals do exactly the opposite to property, and it is possible to leverage up your person wealth many times by understanding what happening better. In the kind of crisis we are already in I think £20000 of precious metals will probably buy you a house in a few years.

If you buy gold buy soveriegns in a coin shop not on ebay. Larger amounts of gold might be harder to change and there is greater incentive to fake.

Also given that you are potentially able to move overnight having your wealth portable gives you an advantage in a crisis.

I on the other hand am spending my savings because I own a house with some land, and I am trying to get it better prepared more off grid etc so we can live here with little or no cash. I concidered buying a stack of precious metals and renting, then buying a property in a few years. But for me this was not a good option I have grown up children in there 20's and I wanted a base for our family could come, so that they know that they only have to get here if TSHF. This place is the backup for my whole family and was therefore more important than making a profit in the next few years.
.
However if I was younger saving for a property I would play it differently, taking on a large mortgage would not be my least favourite option.

[diamond lil]

Look on it another way - its his burden not yours. His worry, he can't walk away from it but you can. And he has to pay for all repairs.

[the-gnole]

I've just worked out how much I've paid my private landlord in rent for the last thee years - £33,300.

I can't afford to apply for my own mortgage, but I can afford to pay off somebody elses.

This sucks big time. Every month when the rent becomes due, I get peeved off that I have to fork out to pay his mortgage but I can't even get one of my own.

May be you should ask for a refund if he doesn't do some of the following

The Taxman does like to give as well as take

Allowable expenses

The expenses you can deduct from letting income (unless it's under the Rent a Room scheme) include:


•letting agent's fees
•legal fees for lets of a year or less, or for renewing a lease for less than 50 years
•accountant's fees
•buildings and contents insurance
•interest on property loans
•maintenance and repairs to the property (but not improvements)
•utility bills (like gas, water, electricity)
•rent, ground rent, service charges
•Council Tax
•services you pay for, like cleaning or gardening
•other direct costs of letting the property, like phone calls, stationery, advertising

If your annual income from the letting for the tax year 2010-11 is less than £70,000 (before you've taken off expenses) you include the total expenses on your tax return; if it's £70,000 or over you need to provide a breakdown.

Bear in mind that you can only claim expenses that are solely for running your property letting business. If the expense is only partly for running your business (or if you use the property yourself) then you may only be able to claim part of it.

[TeeDee]

Please let this NOT turn into another 'Hate-the-Landlord' thread.

Landlords need Renters. Renters needs Landlords.

[nickdutch]

I've just worked out how much I've paid my private landlord in rent for the last thee years - £33,300.

I can't afford to apply for my own mortgage, but I can afford to pay off somebody elses.

This sucks big time. Every month when the rent becomes due, I get peeved off that I have to fork out to pay his mortgage but I can't even get one of my own.

I dont even earn as much as you pay out in rent each month.

[the-gnole]

Please let this NOT turn into another 'Hate-the-Landlord' thread.

Landlords need Renters. Renters needs Landlords.

Good point TD, I remember when my parents were paying rent, it got to the point that it was cheaper for them to buy, eventually we persuaded them, but that was the old LA properties. Fortunately I have never been in the renting sector, but I'm an old git and started young when property was cheap.