Are you looking for a couple of off-plan units sold with gifted deposit, which will wash their faces when rented as HMOs?
Not sure?! If you're new to property investment & want to speak the lingo like a pro, then are a few of the key terms to get familiar with...
- Unit - a single new-build property - either an apartment or a house.
- Site - a new housing development.
- Developer - a company that builds houses, such as Redrow and Bellway.
- HMO - a 'house of multiple occupancy' - a way of renting a property to more than one person under separate contracts (normally lower income tenants such as DHSS or students).
- RICS - Royal Institute of Chartered Surveyors - the official body that licences surveyors to make valuations on behalf of mortgage lenders.
- Gifted deposit - where a developer contributes part of the deposit on a property.
- Off-plan - exchanging contracts to buy a property before the actual building work has finished.
- A unit that will 'wash it’s face' - a property where the monthly rental income is higher than the monthly mortgage costs - normally because the buyer puts down a small deposit i.e under 10%
- A unit with a rental shortfall - where the monthly rental income is less than the monthly mortgage payment - normally where the buyer puts down a large deposit i.e over 30%
- Rental void - a period when a property is untenanted.