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[Closed] Would you do this? - Help to Buy 2 scheme.

Posts: 39746
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"Good luck getting a nicer property with a mortgage than in rent for the same cash."

my mate gets 1600 a month rental on a 3bed in rough condition on deeside.

i pay no where near that in mortgage on a 3bed in a nicer area of deeside......

also

"Why not go for the deal, and then save, by the time you want/need to remortgage you will be ready, with the money you would have been saving either way."

exactly what we did - had 20% saved - bought a house that needed new heating , rewiring and redecorating - spent the 10% on doing that ASAP - saved it back up and i have cash injection to put in at remortgage in feb IF it makes a difference to the interest rate.

If i got anywhere near 1600 a month in rental return id be happy 😉 - point being is that folks round here want turn key housing so you can get a good deal up here.


 
Posted : 10/10/2013 8:46 am
Posts: 9307
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Good luck getting a nicer property with a mortgage than in rent for the same cash.

As a first time buyer, you will presumably be mortgaged up to the hilt on a not so great interest rate. A £275,000 mortgage would get you a decent 2/3 bedroom house in a nice suburb area of glasgow or a 2 bedroom flat in a really nice area of glasgow. That's about £1,500 a month. £1,500 a month will open up all but the most expensive properties on the rental market.

I'm not planning on spending nearly that much money on a house, probably less than half that! All the rentals I've viewed round here are shit and overpriced. Either that or house shares which I have no interest in after uni.


 
Posted : 10/10/2013 9:48 am
Posts: 39746
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also FYI

competition on rental market - my girlfriends little sister is looking for a flat in aberdeen just now

even post UNI student influx - there were 80 folk viewing the last rental she viewed.


 
Posted : 10/10/2013 9:54 am
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That's interesting TR, very different from the situation in Glasgow for the last while.

Perhaps there's a ceiling on rent in Glasgow though, demand is lower for the £1,500+ houses, so perhaps that pushes those which would be closer to £2k+ into the band below.

The last place I rented was £1,450 a month and when I looked to the cost of buying, it was around £375k. That's not unusual, particularly around areas like Park Circus, Newlands, Thorntonhall etc. Which is quite odd, since there aren't actually that many rental properties which I thought would push the rental cost up. Presumably it's people with small(ish) mortgages who are renting them out, rather than someone buy a property on a 75% buy-to-let.


 
Posted : 10/10/2013 11:15 am
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