One of the advantages of being director of a national Quantity Surveying firm is that I get to see what other people are doing and where they are buying.
I also find out what other people’s “strategies” are when talking to them…
Due to the current state of the market and the affordability of property (or lack there of) – I have spoken to a lot of people who want to buy their first property, rent it out for 5 years and then move into it.
The majority of people using this strategy are graduates, and the theory is that they get the tenant to help with mortgage repayments before their own wages take off!
Not a bad idea…but the real kicker are the grants they might be entitled to and the realisation (while using the Washington Brown calculator), that the amount they can depreciate is the greatest in the first 5 years.
So like all good graduates…they want to have their cake and eat it too.
They want any government grants available, someone else to pay their mortgage and to suck the most out of depreciation while they can.
Guess that’s why they went to Uni!