Buying a house!

Discussion in 'Economics' started by wiley25, Jul 31, 2012.

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  1. Hello all,

    This is my first post so apologises if it is in the wrong part of the forum!

    This is my situation:

    I'm 24, serving in the Royal Artillery for 5 years. Just completed my second tour of Afghanistan and rather than piss the money up the wall, I want to buy a house.. I have enough for a tidy deposit on house around 100k, the plan being to buy it, let it out and have some bloke pay for my house until the time comes when I want to leave the forces.

    The problem:

    I am never home enough to complete a house sale, I am based in Germany and even when I am home for large leave blocks the time I get a viewing, sort the bank, wait for solicitors, surveyors, the vender and all the good stuff that goes with buying a house, I am back at work and only contactable buy email.

    Has anyone has any experience with buying a house whilst deployed (in BFG or anywhere else)?

    Cheers,

    Wiley
     
  2. First thing is knowing WHEN to buy. People whom of late buying houses that are over-valued and they are paying a mortgage in negative equity, which means the mortgage costs them more and the house actually isnt worth what they bought it for. However, not all doom an gloom, if you are looking at it for long term investment you should make money on it. LSAP can be given but you have to live in it and not rent it out - its a no no. Also have you tried the search function?
     
  3. I'm all squared money wise, it is literally the specifics of going through the process of buying the house whilst I am living in BFG.
     
  4. Agree with post 2. This is at best stagnant market and whilst it will depend a lot on where you are looking to buy it may pay to wait a bit yet.....

    As for your other points clearly you will need to view any property before you offer to purchase it. If you can arrange this and are happy with what you have chosen the rest can usually be done by email or over the phone, although you will have to attend in person to sign solicitor brokered contracts and to apply for a mortgage if you need one.

    One other point, seek advice about letting it out. Whilst a letting agent can manage this for you they will take a slice of the rental income. If you need a mortgage product to purchase it will also need to be the right one. Not all lenders will entertain buy to lets and you must declare you intend to let it out
     
  5. There's never a bad time to buy property. It's selling that's the problem.
     
  6. After speaking with mortgage advisors and people who already let out I know that I can buy a house on a first time buyer mortgage, and a week after purchase inform the bank that I want to let it out... it is one of those stupid loopholes in our law, but for once this one will work in my favour.

    And I live in West Wales, property prices are down about 15k from 5 years ago, the factors of the housing market being low, mortgage rates being low and me having a large disposable income right now... I think this is the best time for me to buy.
     
  7. Good time to buy and if you buy a new build off plan the company building it will often sort the majority of paperwork out for you. If you intend to let as mentioned earlier make sure your mortgage covers this and secondly if you are not planning to live in it for a while and purely for profit pick a commuter high let area as your circumstances may change in the meanwhile (you get hitched,kids,family,blah,blah) and you could maximise any profit from this onto your dream house.

    Goodluck

    edit Just read the bit where you live in Wales as I said if your not planning on living in it you could pick an area where the housing market may recover quicker and offer a greater rental yield. I drive by developments in Colindale and Mill Hill daily and the developers are offering a whole range of schemes and discounts. Pick the right property and not only have your mortgage paid but you can overpay monthly as well or grow a deposit for the start of your proerty empire!
     
  8. Some developers offer a forces discount and other incentives. Look at David Wilson homes.
     
  9. I bought a house 2 years ago whilst serving in Germany - from Persimmon Homes. It went through easily and I got a good discount being forces (in truth, the discount brought the house down to market value).Personally if I was buying purely to let then I would get a flat rather than a house - far less hassle. Around my way (Leeds) you can get a 3 bed house from as little as £80k (for a dump) or £50k for a flat (also a dump). In this area the rent on either would cover the mortgage and cost of a property management company.LSAP can be used even if you intend to rent out so long as it is your only property and you would live in it if it was not for the fact that you are not posted near where it is.Despite the doom mongerers on here it is hard to lose long term by buying a property so long as you buy clever. The trick is to take your time and buy the right property at the right price and in the right area.
     
  10. Bad CO

    Bad CO LE Admin Reviews Editor Gallery Guru

    Something that may make things easier is to get your conveyancing, mortgage and survey done by people used to dealing with people online. This is the way I've always done it which has meant that I've only ever needed to be in the same location as the house to either view it or move in! Both of these activities can be easily managed around leave periods.

    For conveyancing, I'd particularly recommend these guys (Expert Conveyancing Solicitors - Free Online Conveyancing Quote | Online Conveyancing). I've used them to buy three times and sell twice. Never any problems at all and very happy to fax/email/etc paperwork to make it easy.

    Good luck and hope it works out ok for you.
     
  11. If buying on new developments be aware there may be ayearly management fee.
     
  12. I would check the facts about simply informing the bank you want to let it out a week after purchase. Almost certainly most will want you to move to a relevant mortgage product to achieve this, some lenders will refuse to consider it completely. Where they will allow it, it may well incur penalty charges and all sorts.
    This sort of thing may have worked a few years ago but most lenders have woken up to what a good little earner it is to offer different types of mortgage product.

    I don't wish to pour cold water on your advice mate, simply recommend you speak to someone who can give you independent advice and who are not trying to sell you something.

    I have bought and sold quite a few times and have always found Martin Lewis's forums to be useful in terms of considered and accurate advice.There are lots of buy to letters established there who I am sure would be happy to assist where they can.

    House Buying, Renting & Selling - MoneySavingExpert.com Forums
     
  13. Wow, what can I say... a lot of research to be done here.

    Thanks for all the advice, and I'll keep you all updated with my progress!
     
  14. One thing to always bear in mind is the Tax man!

    If you are buying to let you must declare the income (rent) on a self-assessment form yearly. Careful accounting can leave you with a loss or very small profit each year. IIRC you claim back the interest on the mortgage and then any maintenance charges, repairs, workmen furniture replaced, etc. The following year the Tax man will adjust your tax code to represent the profit you have made on the previous year.

    Sounds like a ball ache but the flip side is the Tax man claiming 40% capital gains tax on the house when you come to sell it on!

    If you manage to keep the profits at a minimum after a few years the Tax man can get bored and send you a letter telling you not to bother submitting any more self assessments – at least that’s what he did for the wife! :)
     
    • Like Like x 1
  15. I have to do that and you can pin most of it back, I think last year I paid the tax man £7 extra. The rub is that the house took in no rent for 6 months this year, but my outgoings remained the same, so my overall tax liability will be reduced.