Can We Benefit From All The Immigrants? Yes

[ukanonymous]

I really dislike all the mass immigration and government hand outs but I have thought of a way to personally gain from it. buy to let. That way the government guarantees your rent. Sounds good to me does anyone else see any flaws with it? I think I could stretch a mortgage to cover 2 cheapish properties. Why not take back some of the taxes I have paid when lots if people take money for nothing?
I think all the uk people should try do the same as me because otherwise we will just lose out as far as I am concerned. We can all stretch for a loan right?

[tamborine]

Seems Cameron is loaning 20% equity on property purchases. Buy to let pays better than savings a/c but is a headache with rules & regs. If you buy below market price then its worth the investment.

http://www.theguardian.com/money/2014/jan/02/help-to-buy-housing-bubble-david-cameron

ps the best tenants I had were Bulgarians

[TTG]

It puts me off having to pay income tax on the rent received. This needs to be taken into account when using the rent to pay the mortgage. Also I believe capital gains is payable if you sell the property 3 years and beyond. That needs checking out though.

[Gromit]

Are you 16? Have you ever applied for a mortgage and been given one?

// We can all stretch for a loan right? //

You are unlikely to be given a mortgage if you have merely loaned the money. It is usually assessed on your income and proof that your outgoings leave you enough to pay back your monthly repayments. If you have to borrow the money, you cannot afford to do this. If you have money to buy two houses without a mortgage, then you plan would make uou money.

[New Judge]

Er....apart from the other problems already mentioned, how exactly does the government "guarantee your rent"?

[sherrardk]

New judge, probably referring to 'benefit scroungers' - rent is not guaranteed, it is paid to the tenant not the landlord.

[ukanonymous]

I have applied for a mortgage before yes silly :) with my work I paid it off in less than 3 years. When I said loan I meant mortgage.
Also I did claim housing benefit for a year when I was 18. The owner got direct payments has that changed now?

[EDDIE51]

Yes, it is daft but housing benefit go's to the tenant not to the landlord.
Then the landlord has to get it off the tenant.

[Gromit]

// The owner got direct payments has that changed now? //

I can see you have thoughly researched this.
If you already own property outright, you should have no trouble raising a mortgage or two. Good luck.

[youngmafbog]

Renting is a mine field. Go into it with your eyes wide open.

You have to maintain the house, have regular gas and electrical inspections and repair things quickly when they go wrong.

Many people simply compare rent to mortgage. It is not that simple. If the house price goes up, ok you are in easier water. But what do you do when it goes down?

At one point we had 4 flats and 5 houses, it became a nightmare and we got shot. Worse scum we had we white British, left the house covered in hypodermics, hundreds of them (after they had nicked the fridge and anything else not bolted down). We had to rip the house apart and redo it.