Buy-to-let

[telegraph.hill]

Buy-to-let is curently all the rage in the UK. Pension plans are collapsing, there is less government owned rental housing availalbe, and so people are being encouraged to go into the buy-to-let market. The idea is that people invest their money in property and rent it out, thus making money to retire on. And at the same time, more rental property comes onto the market.

Problem is - you need money in the first place in order to do this.

Also, it divides society into two camps: those with the money to buy property who are then able to make a profit, and those with no money to buy property who therefore have to rent, and because they pay rent, they will never be able to afford a place of their own, or have any savings.

[Melos]

In the US too, things are divided among those who are stuck renting (and therefore never being able to save up a downpayment) and those who own. With real estate and rental prices booming around here, I was thinking about doing something similar for my first house purchase. Perhaps buying a duplex and renting out one half of it while living in the other half.

[Plumley]

In a way, I'd rather rent. Sure, I have a lot more freedom in my own place - I can put nails in the walls and plant whatever I want wherever I want. But I have a lot more responsibility and expense with repairs and maintenance. That's exactly why I wouldn't want to be a landlord and have twice the headaches.

[telegraph.hill]

What is a duplex, Melos? Is it like two houses joined together? (What in the UK would be called semi-detached).

[MsRetro]

Originally Posted by Melos

In the US too, things are divided among those who are stuck renting (and therefore never being able to save up a downpayment) and those who own. With real estate and rental prices booming around here, I was thinking about doing something similar for my first house purchase. Perhaps buying a duplex and renting out one half of it while living in the other half.

I've thought about either doing that, or finding something with an attached apartment.

I have a couple of friends in rural areas who make some agricultural income off their properties, too: my parents rent out some of their land, and a friend of mine grows ginseng. It's a real bonus for property taxes, since you are taxed at an agriculture rather than residential rate.

[Avian]

Renting can definitely be a pain. Good landlords can easily spend far more time and money than they intended too. Also, growing ginseng was a really good idea.

[r8rpwr]

Melos, that is an excellent idea. My first house was just such a purchase. I bought a duplex, lived in one side and rented the other. So, I lived almost for free, all the while building some equity in the property.

[barbiedoll1973_tn]

Originally Posted by r8rpwr

Melos, that is an excellent idea. My first house was just such a purchase. I bought a duplex, lived in one side and rented the other. So, I lived almost for free, all the while building some equity in the property.

I wish that I could find a deal like this I have been wanting to buy something like this just have not run into anything.

[Raquelita]

The situation is similar in the US.

Originally Posted by Melos

Buying a duplex and renting out one half of it while living in the other half.

My parents did this when they bought their first house in 1980 - they rented the two apartments upstairs while we lived in the downstairs, and this paid for our mortgage and allowed their finances to be easier.

[muslgrl]

I would much rather own. Yes you have to pay for all repairs but I like that fact noone can tell me what colors I can paint my walls