How much would it cost to build a 1000sq foot house on my own house within Cumbria?
This would be a bungalow with garageAnswers: A lot depends upon the specification of the property - expect to wages anywhere from lb100k to lb200k. Your first hurdle though is getting planning permission, assuming you haven't already get this.
cant really say minus seeing any plans,if you have plans might know how to answer
I am going to rent out my house but I won't get nearly what I pay in mortgage... is this ok if we can swing it
Answers: You can write of the negative cash flow as a business expense, so it could be a good thing. You need to discuss this with your accountant.
Depending on where you live, this is the only way it can be done. For example in NYC most properties are negative cash flow ones. That's why many NY investors look to other cities to purchase properties so they can make some cash flow.
If you are OK with covering the remainder of the loan, then go for it.
If you are doing this because you may not get what you paid for he house, you need to sit down and crunch some numbers. Lowering the price of the house to sell it may e in your best interest.
Look at it this way. If your house has lost $20,000 of value, meaning that you owe $20,000 more on it than it's currently worth you might think that renting is a good option until the housing market recovers. Sometimes it is.
Consider that you will rent the house out and get a shortfall of $200 per month, which you will cover out of pocket. That's $2400 per year you will be paying.
Now consider that historically, price increases for property is around 3% per year. We are still on a downward slope so I expect at least another 1-1.5 years before house prices go up.
I'll assume that we are talking about a $200,000 loan. Prices will drop for another 1 year, so lets figure that the $20,000 I said earlier will go to $25000.
Now the house is worth $175,000. You need to get it above $200,000 to break even with what you owe. Figuring the average of 3% increases beginning after next year you are looking at about 5 total years before you get up to that price range again. During those 5 years of renting the property out you will spend $12,000 of your own money to cover the difference between the rent and the mortgage payment.
Hopefully there won't be any maintenance issues that need fixing. 1 hot water heater could cost you $500 as a repair. Roof, electrical, etc. should all be in good repair.
Now take into account that you will most likely not have 1 person rent the place for the entire 5 years. Lets be generous and say that you have 2 months total in vacancies during those 5 years. That's 2 months where you are covering the entire mortgage payment. Did your tenants damage anything when they left? Carpet needs replacing? How about a fresh coat of paint.
Adding in the cost of covering the full mortgage payment for the 2 months it was vacant during the 5 years, a fresh coat of paint in-between tenants and other small misc charges and we are talking about another probable $3000 in charges. This brings your total carrying costs roughly to $15,000.
Think then, would lowering your price and coughing up the 15k now be worthwhile? You wouldn't have the headaches of dealing with being a landlord, working with tenants, collecting rents, etc.
Good Luck!
How can I seize a give in so I dont loose my home to forclouser?
I was out of work for a lenghthly amount of time. My home is going to be taken due to forclosure. How can I apply for a admit so I dont loose my homeAnswers: Despite what the guy in the examine mark suit say, there isn't free money out here for the taking.
I don't know of any grants to free your house.
Try working with the lender, see if you can gain a hardship exemption until you obtain back on your foot.
No such thing and no pretext to be out of work for months.
You could have worked two lower paying job in direct to make the payments while you be out of work.