Mel E Posted August 1, 2006 Share Posted August 1, 2006 There are posts every so often from someone 'planning to sell the house and go motorhoming in Europe as long as we can'. A recent one from 13Stargazer prompts this post. My own, very strong recommendation is: 1. Don't sell your house - you are swapping an asset that appreciates (the house) for one that most certainly depreciates (the motorhome). Result: after a few years, when you need a house, the sale of the motorhome will not provide adequate funding. 2. Rent the house - even after agents' fees, you will get an income. Remember, you can set against this income the agents' fees, repairs and maintenance, mortgage costs, and the costs of any major refurbishment to bring it back up to the original standard when you want to move back in. The net income is thus likely to be very small and the tax payable tiny, if any. 3. If you need dosh to fund the motorhome, take out a buy-to-let mortgage. This is both a much cheaper source of money than HP or a Bank Loan, and, as in 2, can be offset against any rental income to calculate your tax liability. Keep a foot in both camps - keep the house AND the motorhome. Anyone think differently? Link to comment Share on other sites More sharing options...
johnsandywhite Posted August 1, 2006 Share Posted August 1, 2006 1. Very good idea. I am lucky enough to have 2 cheapos. 2. Rent out to Family. No fees to pay. (if they pay that is?) 3. I tried to re-mortgage as a buy-to-let. They would have given me £17.500 in cash for an £85,000 house with £20,000 interest only mortgage. My mortgage would have completely swallowed up the rent received. Instead I cashed in a PEP. The taxes paid on the income swallow up a small private pension that had matured. My recommendation is to rent/buy a Motorhome for one year and see if that is the life for you. A. Can you and your wife/husband/partner live with each other 24/7/52? B. Can you face and cope with all the possible problems that will most certainly arise? Link to comment Share on other sites More sharing options...
Mel B Posted August 1, 2006 Share Posted August 1, 2006 We purchased a second property by remortgaging our own home, this meant that we didn't have any of the restrictions on who we could rent the new property to - there are an awful lot of restrictions with buy to let mortgages, not to mention the limit on how much you can borrow, the excessive repayments and also the extortionate 'get out' fees if you need to settle the mortgage for some reason. We've done this with the intention in the future of being able to have the choice of what we want to do - do we sell our own home, rent it out as well, sell it and move into the new property etc, the choice will be ours totally with no 'input' form the mortgage company at all. Don't get a buy to let mortgage unless you really have to, if you need the cash just get a mortgage on your home whilst you are living there, then you can choose to rent it out afterwards - you do have to tell your mortgage company though if you decide eventually to rent it out but at least you won't be hit with all the penalties that buy to let mortgage brings with it. Link to comment Share on other sites More sharing options...
Pat P Posted August 2, 2006 Share Posted August 2, 2006 We have just let our house using an internet site called Houseladder. Initially you get a free advert. If you get a "lead" then you have to pay to pick up that "lead". The cheapest is £70 to put the advert on the main website with a wide exposure. We went with the first lead and hope to sign contracts ( see ARLA website) with them this weekend. No fees other than that £70. We were told to listen to our gut instinct about the tentants. We are doing just that and so hopefully it is all going to work out ok. They will pay the rent into our bank account. We are also thinking about selling in the future (if we take to full-timing) and buying a one bedroom flat to use as a base. We may then let this out or keep it for visiting home. Will keep you posted on any scary developments. Pat Link to comment Share on other sites More sharing options...
Brian Kirby Posted August 2, 2006 Share Posted August 2, 2006 If you haven't already done this, do, please, check that you have a properly drawn up tenancy agreement. I don't know the present legal position on tenant's rights, but there have always been severe difficulties in getting tenants out if you have/need to. Should either of you become seriously ill, should your motorhome be written off in an accident, or stolen, where would you go if your tenants cut up rough and refuse to leave? Link to comment Share on other sites More sharing options...
Pat P Posted August 3, 2006 Share Posted August 3, 2006 Thanks for the warning Mel. We had thought of it and downloaded a tenancy agreement from the Association of Rental and Letting Agents. Apparently if you let unfurnished it is quite easy to get people out. There is a quick court action you can go through. I was also told by an estate agent that he always goes by gut instinct when interviewing clients. Link to comment Share on other sites More sharing options...
Pat P Posted August 3, 2006 Share Posted August 3, 2006 Sorry that should read "Brian". I was posting in work and the boss walked in. Still I am taking voluntary redundancy so why should I worry! :-D Pat Link to comment Share on other sites More sharing options...
Mel B Posted August 3, 2006 Share Posted August 3, 2006 Pat Who's going to keep an eye on your home and tenants whilst you're out and about touring? You need someone to look after your interests whilst you're away. Link to comment Share on other sites More sharing options...
Pat P Posted August 4, 2006 Share Posted August 4, 2006 Well having lived in the house, which is in a village, for 24 years we are happy that our neighbours would tell us about any major problems with the tenants. Our daughter lives not too far away and so does my brother. We have gone with our gut instinct that the couple are genuine and will treat our house with respect. At the end of the day if we have to completely renovate it (again!) then that is what we shall have to do. Obviously we have put some money to one side for that possibility. Talking about living in a village......... my mum (85 and registered blind) was having a nice lie in the other morning when she woke to find two neighbours calling her name right beside her bed. It was 11am and they hadn't seen any signs of life from her house and so used their key to go and see if she was all right! Warms your heart doesn't it. ;-) Link to comment Share on other sites More sharing options...
Brian Kirby Posted August 4, 2006 Share Posted August 4, 2006 Remember to make sure your insurers are aware of your arrangements (buildings and contents). Also, I believe you have to advise lenders if any mortgage is outstanding. Have you advised all possible senders of a new postal address? Will you ask for a change of 'phone number? You are at some risk of identity theft unless you do this. Remember also that the best con artists are always convincing. Have you obtained, and checked, references (bank, employer, utilities ets)? Link to comment Share on other sites More sharing options...
Pat P Posted August 4, 2006 Share Posted August 4, 2006 Yes to all of those Brian except the reference checks. I met these people at their own home as I was treating their dog for behaviour problems. We got chatting about things - they were looking to rent after finishing a self build - we were looking for tenants. They paid my bill so I was happy. Even if I hadn't already met them I am experienced enough about life to smell a rat. What can they do? Stay there and not pay? we wait for them to go out and change the locks! Wreck the place - we are taking a hefty deposit and will just have to swallow it if the damage comes to more than that. If we worried too much about life we wouldn't do anything. Thanks for you concern though. Pat Link to comment Share on other sites More sharing options...
Brian Kirby Posted August 4, 2006 Share Posted August 4, 2006 All agreed, and I hadn't (how could I) realise you'd visited them at home. So, not trying to teach granny etc. However, it is an open forum, so anyone can read the comments.What I was reacting to were some of the less happy tales of renting out I've read, thankfully not here, though.One couple rented out their home and went abroad. They were relying on the rental income to pay the mortgage while they were away. After several months they had ungent contacts from relatives, who had passed by their house and been surprised that it looked unoccupied. On closer examination, it proved absolutely empty. Further enquiry revealed that their bank account was overdrawn, because only the first rental instalment had been paid. Then it was discovered that the entire contents of the home had been moved out, in a legit removal van so as not to arouse suspicion, and sold. The "tenants" who had of course left addresses from the previous property they had similarly emptied, so not traceable, were presumably several house away still going strong.Not typical, I agree, but it can happen! That is the only reason for my comments. Managing risks is all about first identifying them. If you've done that, the worst shouldn't happen, but if it does, you know what to do.Good luck Link to comment Share on other sites More sharing options...
Pat P Posted August 5, 2006 Share Posted August 5, 2006 Gee thanks for that Brian!!. We are staying around for a couple of months to oversee things. This couple have lots of family in the area and so should not disappear we hope! We will however heed your warnings and keep a close eye on the bank account! Pat Link to comment Share on other sites More sharing options...
Brian Kirby Posted August 5, 2006 Share Posted August 5, 2006 See also MelB's post under "bad week". She seems to have a property let out which has given her a few problems this week. I know they cost, but sorting out the problems and making sure the rent is paid is one advantage of leaving a letting agent in charge. You need to find one who does something, of course, apart from just taking his percentage. Then all you need is just the odd call to the agent to check all is well, plus an odd call to the family to check the agent seems to be pulling his weight. The result should be total peace of mind while you get on with enjoying your trip. And no, I'm not a letting agent, estate agent, or a solicitor!! Link to comment Share on other sites More sharing options...
Pat P Posted August 6, 2006 Share Posted August 6, 2006 Two of your comments are the reason we didn't use an agent. They don't actually do very much except pick up the phone and call a tradesman. Well we can do that! We know all the good local tradesmen who won't rip us off either! For non emergencies we will sort them out ourselves and save even more money. Only two weeks to go............. Pat Link to comment Share on other sites More sharing options...
enodreven Posted August 6, 2006 Share Posted August 6, 2006 Staying on topic, what do people mean when they say they are going to go Full Timing, just how long is Full Timing ???. I suspect that most people don't actually think that far ahead ? or do they ? Link to comment Share on other sites More sharing options...
johnsandywhite Posted August 6, 2006 Share Posted August 6, 2006 :-D Hi enodreven. We have been Full-Timers for 6 years. In actual fact if you count the 5 years we had in a Caravan on a site in Spain? Then it is more like 11 years. We LIVE Full-Time in our Motorhome. Does that give a good assumption as to what Full-Timing is? ;-) Link to comment Share on other sites More sharing options...
Pat P Posted August 6, 2006 Share Posted August 6, 2006 Hi Johnsandywhite In your earlier post you mentioned - can you cope with the problems that will almost inevitably arise? Have you experienced any? Ready to share? ;-) Only one week six days to go........... Pat Link to comment Share on other sites More sharing options...
johnsandywhite Posted August 6, 2006 Share Posted August 6, 2006 B-) You obviously haven't read:- The Trials and Tribulations we have encountered while Full timing in our motorhome? From our now defunct - John & Sandy's Motorhome Web Site. However. If you have 2 or 3 days to spare? You can read most of them and our Tour of the USA here:- http://whitehotlaser.freeforumhost.com/whitehotlaser-about14.html http://whitehotlaser.freeforumhost.com/whitehotlaser-about11.html Link to comment Share on other sites More sharing options...
Pat P Posted August 6, 2006 Share Posted August 6, 2006 Thank you Johnsandywhite Have printed off as am a bit busy at the moment but not for long becaaauuse....... Only one week and six days to go...................................... :-D PS when you have time could you post something about how to get a computer to work in a motor home? We have a pc at the moment but will probably have to get a laptop??? Any help would be very much appreciated. Pat Link to comment Share on other sites More sharing options...
johnsandywhite Posted August 6, 2006 Share Posted August 6, 2006 B-) Hi Pat P. We have always had a Full-Size computer with us. But we also have 2 Laptops. We use an Invertor to power them all. But we also have a variable Laptop power supply that works from the Cigarette Plug-in. ;-) For internet connection we used a Nokia 5110 and Nokia Datasuite. That was mainly for emails and a little surfing. While in the USA we used Wifi for 100% surfing, emails and phoning around the world (FREE for most calls) using Voipbiuster. Hope to use Wifi more in Europe. ;-) Link to comment Share on other sites More sharing options...
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