yeah you kind of need to be in property already for renting. At a certain point you become immune t it all anyway as varying interest rates and house prices just change when you buy and when you remortgage (Im not there yet).
The problem with asking family and friends about mortgages is theyre all basing their knowledge on a couple of years back. Almost everyone who hasnt bought in the last year or two is going to say you ust get fixed rate for a first purchase. With interest rates at the level theyre at now and the short terms you can get its just not worth it. But theyll all tell you that because it made sense up until recently.
I always start with any new properties on Interest only. Gives a bit of breathing space for any work that needs to be done, light furnishings, etc.
Then when your discount/tie in is up, shop around & go for a fixed rate.
My last purchase (which is the one I do plan on moving to & renting out the current pad) as I said cost £85k. It needs a lot of work. Im estimating £15k - for that Ill be converting the Loft into a usable storage area with permanent access, removing 5x Chimney Breasts & its Stacks, etc. Replastering the whole house, decorating the whole house, Move Old Central heating boiler from upstairs & install a new combi downstairs, Landscape the back garden & build a Garage & Finally to Render the whole house as its plain red brick atm. Thats the 3yr plan.
Smaller Houses are already selling in the street for £95k. Its a big house (3reception rooms, 4 bedrooms) & theres a growing sub-indian continent community after some foreign investment.
Should push the price up to around £120k by then of 3 years. 50% equity.
Thatll be me done then.. I could then sell up & retire to Malaysia or Thailand.
Figure Ill have enough money to last me about 30years taking in account the rent money from the other gaff.
Then I just sell the 2nd property which should last me the rest of my life mixed in with my pension