Jump to content

Looking for rental properties whilst still living with parents


Recommended Posts

Hi guys,

 

I'm turning 22 this year and am looking to both move out of the family house and begin acquiring properties to rent. I was wondering if one should be of a higher priority than the other. I understand that being a homeowner has some clout with lenders and there is the matter of equity with regards to finance options.

 

I just wondered what you all think. Should I stay with the parents and build up savings or move out into a rented accomodation?

 

Kind regards

Noah

Link to post

Hi Noah,

 

I was in almost the exact same situation as you, I bought my first BTL at age 23 whilst still living with my parents.

 

I did severely limit my options due to having no previous 'mortgage experience' or not owning a residential property. I managed to get a BTL mortgage with Natwest and I believe they still offer BTL mortgages to first time buyers. Once you then have a BTL mortgage this opens up more options due to then having the ‘mortgage experience’, although still not as many as if you also had a residential mortgage. 

 

Personally I would stay living with your parents if possible. Moving out into rented accommodation would not really solve any of the mortgage problems I just mentioned but paying rent would hamper your ability to save (Assuming your parents don’t charge you lots!!). Also, I found it slightly comforting for my first BTL that I did not have the outgoings of rent/mortgage/ bills that HAD to be paid, just in case I did need to cover the BTL for a month or two during any void periods.

 

If you've got any more questions just let me know!

 

Good luck!

Brad

Link to post

Hi Noah,

 

This is a great question but will take me quite a while to answer! I'd love to record an Ask Rob and Rob on this very topic. If you get a chance, pop your message here and we’ll turn your question into a podcast. It would be great for young people to get some advice on this topic.

 

Cheers,

 

Rob

Link to post

Hi Noah,

 

Great predicament to be in as it shows your already thinking strategically. I'm really just going to echo what has been mentioned already but having rented in the past i would say stay at home and use the opportunity to invest in, or at least explore, a BTL. If you do stay at home whats the worst that can happen? You might end up with a slightly higher interest rate mortgage but you can offset this against the savings of living at home.

 

If you move out and rent....you still wont have a mortgage history and you will be spending a lot on rent. Not to mention all of the other smaller costs which you may save by staying at home.

 

Just out of interest where are you based? I'm in the West Midlands but i'm originally from the North East with family in the South West & South East (and some North West).

 

Cheers,

Ben

Link to post

Thanks Ben!

 

I'm currently in Market Harborough, a town about 15 minutes on the train from Leicester. It's popular with commuters due to a train link to London St Pancras so we have a lot of people working in London living here because of the cheaper options available.

Link to post

Sounds like you've got one of the fundamentals ticked already! I personally haven't looked at investments in that area however on the face of it i don't see why you wouldn't be able to find a solid investment.

 

If you haven't done so already it may be worthwhile viewing some properties and opening dialogue with estate agents. You will be surprised how easy it can be to get nuggets of useful information from agents etc. It also pushes you to step out and start looking at properties which makes it seem very real and can drive you to hit your goals.

Link to post

Yeah I'm starting to look at properties in my area, I know some lower and higher quality locations within Harborough already.

 

I'm a little concerned with finance though. I work at a Tesco branch, making only around £15000 a year- far below the £25000 minimum most lenders look for. I'm looking into other options to raise the capital though. 

 

Would you guys recommend working at a Estate Agency? There's a vacancy available and I'm thinking of working there for both knowledge and experience.

 

Thanks guys

Noah

Link to post
  • 3 weeks later...

iv just turned 22 :). i moved back to my parents home this year and my ability to save went from 30-40% last year, to a now 75-80% after take home pay. i would highly recommend you stay put with your folks, hopefully we both can start on the property ladder soon as young investors.

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...