In about 9 months I'm looking to get into the property market. I'm sick of wasting money on rent when I could be putting a bit more money into it and be owning a small piece of something at the end of the day.
My plan is to buy a cheapish (160K) apartment in Newcastle, live in it while I do it up slightly with any spare money I have (paint it, light fittings, taps etc, basically nothing too major just work away at decreasing flaws as opposed to massive room renovations). My girlfriend will pay me rent while we live together, and in at the least a years time, sell it and get a house together with any (hopeful) profit we have made.
I'm not a pie in the sky investment idiot, I'm basically just looking to get my feet wet while not risking too much.
Ive got a few questions.
What is my title in this situation? Am I investing or a home owner? I know I'm living at the place but I am getting rent…Do I declare this? Can I negative gear this in some way? I'm not too fussed, I just want to know the best way to work it legally in my favour.
When going for a home loan will the lenders take any rent paid to me into account when decide what I can borrow? How do I have to ratify this to get it as income they can acknowledge?
Any tips on how I should go about it? What are the best cost effective things to renovate in an apartment situation?
My girlfriends Dad is a painter, my dad is an Architect and my sisters husband is a Real estate agent so I decided to use the resources availible to me and dive right in. I like the idea of property for long term investing over things like stocks so even if I barely come out on top, or only break even I'll be happy as the experience I'll get will be priceless.
Thanks for any help,
Alex
Any ideas?
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