Hope you don'y mind me posting this new thread but you guys seem so knowledgeable about so many things, I thought I would ask anyway!
I've recently received details about buying new houses for rent, that's with no deposits down and a cash-back of around 10%.
You know what they say, if it sounds to good to be true, it usually is. But I can't see the catch, apart from having an empty property for a few months and interest rates going through the roof!
I've worked out that interest rate would have to be over 7% to exceed rental income, even at commercial rates, to cover mortgage repayments. I think that will take a few years yet to get there and in the mean time there will be some capital appreciation, irrespective of what's happening in housing market.
I just wondered if anyone out there had seen anything similar, or got involved, what's the general opinion?
Sally.
I've recently received details about buying new houses for rent, that's with no deposits down and a cash-back of around 10%.
You know what they say, if it sounds to good to be true, it usually is. But I can't see the catch, apart from having an empty property for a few months and interest rates going through the roof!
I've worked out that interest rate would have to be over 7% to exceed rental income, even at commercial rates, to cover mortgage repayments. I think that will take a few years yet to get there and in the mean time there will be some capital appreciation, irrespective of what's happening in housing market.
I just wondered if anyone out there had seen anything similar, or got involved, what's the general opinion?
Sally.