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[tunnie]

Decided to pop into an Estate agents today, asking for project type houses.

Got given one that was a repo, he pointed out that even the car in photo was included  

Its only worth £1k at best, looks like a VeccyB 1.8 CD, but i was quite surprised to see it being included.

I have a few questions...

1) Do you have to pay Council Tax on a house you own, but do NOT live in?

2) If you own a house do you have to take out gas/electric/water contracts? Can i choose not to have these?

3) Would 2.5k total costs of buying a house be reasonable?

4) What do you lot pay for house insurance?

5) If a house was intact (got double glazing and so on) would 8 weeks be an ok timeline for internal renovations?

- Rip out kitchen and replace
- Rip out bathroom
- repaint everyware

6) Are there any fees extra to pay, if you take out a mortgage, but then pay it off 10 weeks later?

Thanks in advance  

[Lazydocker]

Decided to pop into an Estate agents today, asking for project type houses.

Got given one that was a repo, he pointed out that even the car in photo was included  

Its only worth £1k at best, looks like a VeccyB 1.8 CD, but i was quite surprised to see it being included.

I have a few questions...

1) Do you have to pay Council Tax on a house you own, but do NOT live in?

2) If you own a house do you have to take out gas/electric/water contracts? Can i choose not to have these?

3) Would 2.5k total costs of buying a house be reasonable?

4) What do you lot pay for house insurance?

5) If a house was intact (got double glazing and so on) would 8 weeks be an ok timeline for internal renovations?

- Rip out kitchen and replace
- Rip out bathroom
- repaint everyware

6) Are there any fees extra to pay, if you take out a mortgage, but then pay it off 10 weeks later?

Thanks in advance  

1. I don't think so, but you have to notify and prove it to council.

2. Easier if you do TBH. It'll make your life easier when working there and most companies are only 28 day contracts now.

3. Depends on value of house

4. About £20/mnth I think.

5. Depends how hard you want to work and how much time you'll spend there... But, as long as you have no problems, yes.

6. Speak to a mortgage adviser and don't go on any ofthe deals, just the Lenders SVR

Hope that helps. Just my opinions and understanding though

[Bandit127]

No. 1 - Devon & Cornwall charge because of the high amount of holiday homes. It is extremely difficult to avoid this, but not impossible.

Don't know about other areas.

[HolyCount]

Agree with Lazydocker on most points.  Regarding council tax -- yes you will have to pay a percentage as a second home if your sole or main residence is elsewhere in the UK.  I think if varies from council to council but down here it's 95% !

[Marks DTM Calib]

1) The official line is that you must pay council tax if the house is furnished.....(this is how they get the holiday homes etc)

2) Easier if you do and minimal amount....plus not all now having a standing charge.

3) For a cheap one.....just about.

4) Mine is 37 a month but, I have a bigish house and lots of contents cover

5) No, not unless you were not working and even then it would be a push for one person. Unless of course you do a shite job!

6) No but, you are limited as to the type of mortgage you can get.

One other note.....capital gains tax.....you cna only get round this if you live in it for 6 months (or can at least prove it was your main address )

[tunnie]

would almost be better then if i buy to rent, rather than sell. One i saw had 25k in it.

Its on the market at 140k, guess i could get it for 135k.

Ones in good nick go for 170k

[HolyCount]

Again regarding Council Tax -- this is copied from my councils website:

Furnished unoccupied properties
A discount will be applied to properties which are unoccupied, but remain furnished. For Council Tax charges relating to periods prior to 1 April 2004 the discount will be 50%. However, for Council Tax charges from 1 April 2004 onwards the discount will be reduced to 10%.

Caravans, boats and certain 'job-related properties are exempted from the reduction in the discount and will continue to receive a 50% discount. For more information please contact Revenues Services.

Empty unoccupied properties
Properties are regarded as being empty for Council Tax purposes where they are 'substantially unfurnished'. Empty unoccupied properties are exempt from Council Tax for the first 6 months. Thereafter, where they remain empty and unfurnished' a discounted Council Tax charge becomes payable.

For Council Tax charges relating to periods prior to 1 April 2004 the discount will be 50%. However, for Council Tax charges from 1 April 2004 onwards the discount will be reduced to 10%.

[Marks DTM Calib]

would almost be better then if i buy to rent, rather than sell. One i saw had 25k in it.

Its on the market at 140k, guess i could get it for 135k.

Ones in good nick go for 170k

yes, upto 25k less capital gains tax, costs, estate agents fees, re-furb costs.

[tunnie]

would almost be better then if i buy to rent, rather than sell. One i saw had 25k in it.

Its on the market at 140k, guess i could get it for 135k.

Ones in good nick go for 170k

yes, upto 25k less capital gains tax, costs, estate agents fees, re-furb costs.

At least that way my total costs should stay below market value, then let the rent pay the mortgage.

Seen the bubble burst on buy-to-rent. BUT People bought when the prices where high, and now the lower rents do not pay the mortgage.

However if i can buy when its much lower in value,  the mortgage will be lower than market value of the house too, the rent should cover the mortgage.

Apparently nice houses on that road, the same size get £800 a month in rent.

[Golfbuddy]

Don't forget, you would have to pay income tax on the difference between what you pay out every month and any income from rental.

And, when you come to sell, you will still be liable for capital gains tax unless, as has been said, you actually live in the property for a period of at least six months.

Have a look at the local paper to see how many properties are available to rent on the local market and what the market rate for rent is. Don't forget, you will have to factor in the cost of any repairs if you rent the property out. These repairs could prove very costly if you have to replace a central heating boiler for instance. You will also need to get a safety certificate for any gas installation. It's best if you give all of this over to a property letting agent, who will draw up the legal rental agreement, although you would need to factor this into the rental each month.

The good thing is that they deal with the tenants and just send you a cheque each month, minus their fees and any other expenses.

[Field Marshal Dr. Opti]

1.50%....I think....if you own but do not live in a house.

4.Usually two parts to house insurance.....buildings cover....which the mortgage company will insist on.....and contents which is up to yourself.

I accept no responsibility for any errors in my answers.

[Danny]

Decided to pop into an Estate agents today, asking for project type houses.

Got given one that was a repo, he pointed out that even the car in photo was included  

Its only worth £1k at best, looks like a VeccyB 1.8 CD, but i was quite surprised to see it being included.

I have a few questions...

1) Do you have to pay Council Tax on a house you own, but do NOT live in?

yes i'm certain you do, they dont stop ours when we go on holiday

2) If you own a house do you have to take out gas/electric/water contracts? Can i choose not to have these?

depends how else you choose to get by!

3) Would 2.5k total costs of buying a house be reasonable?

including purchase price or just all associated fees??

4) What do you lot pay for house insurance?

not completed sale yet

5) If a house was intact (got double glazing and so on) would 8 weeks be an ok timeline for internal renovations?

all depends on your own circumstances/intentions of the property's future, the one i hope to be in soon is livable, therefore we dont plan to rush, room at a time

- Rip out kitchen and replace
- Rip out bathroom
- repaint everyware

6) Are there any fees extra to pay, if you take out a mortgage, but then pay it off 10 weeks later?

normally an early pay-off fee, can be substantial in some cases, like thousands!!

Thanks in advance  

sorry i can't help more but genuinely wanted to be as helpful as i could

[Taxi_Driver]

Its worth paying a tenner a month for gas/elec/water to each utility.....while its being done up.....I did that on a property i was doing up......elec....u use a small amout with lighting/power tools/kettle/fridge for milk for coffee's   ....so thats fairly covered.
Gas u probably wont use any.....i didnt.....and built up a nice reserve for when i did start using it   Or if u dont move in, and tenants do, obviously it will change of name on the bill, so you get a nice refund from the utility comp. Water, you will use some.....for coffee and coffee and coffee   oh and maybe a bit for other things  

[Taxi_Driver]

6) Are there any fees extra to pay, if you take out a mortgage, but then pay it off 10 weeks later?

Thanks in advance  

If u are thinking of doing it up and selling it again in 10 weeks.....that aint gonna happen tunnie....

Basically you wont sell it......house prices are still falling and nobody is buying for short term gain.....or buying fullstop! unless its for a long term investment.

If you do buy......look at keeping it 2/3 years and thats being optimistic that the UK pulls out of reccession in that time scale.

Several smallish developers in Swindon have gone bankrupt in Swindon not being able to sell brand new homes. The big developers have stopped all building work on new houses..and just leaving them unfinished. The only building work still going on is commercial building....ie hotels/factories/etc .

One developer around the corner from me......has dug all the footings for a new small appartment complex....got as far as concrete floors.....and the plot is now up for auction......so guess he's gone bankrupt too  

So be cautious mate  

[Kevin Wood]

If u are thinking of doing it up and selling it again in 10 weeks.....that aint gonna happen tunnie....

Agreed. It's NOT the time to buy project houses. Prices have fallen but it would be a brave man that put any money on this being the bottom of the market, or the market starting moving in months. Plan on buying to live in it. If that doesn't fit in with your plans, don't do it!

Kevin