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[Jabberwocky]

http://m.bbc.co.uk/news/business-28648704" onclick="window.open(this.href);return false;

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[racechick]

If you live in a place where you can't afford to buy how about this for a plan. I'd do something like this.

Do some research into which areas in the country have the fastest growing house prices but aren't the most expensive areas. Usually on the edge of expensive areas. Also places that yield high rental incomes. I know that a while back Lincoln was such a place. Look for a place where it's still possible to buy a small property/ flat for around 100k. If you can't raise a deposit maybe go in with a relative who can provide that for a stake in the flat, or even as a loan whereby you pay them back at slightly over what they would get by putting it in the bank ( and you'd get it way cheaper than a bank loan) . Put tenants In the flat immediately and their rental will pay the mortgage with maybe a bit over. Sit on this property and let it go up in value , maybe 5 to 10 years, depends on the house market. When it's made enough money for a deposit in a place where you want a house, move into the flat yourself for a while making it your primary residence( thus avoiding Capitol gains) , then sell it. You can now use that money as a deposit and what you were paying in rental will now pay the mortgage your own house.

[Hammer278]

If you live in a place where you can't afford to buy how about this for a plan. I'd do something like this.

Do some research into which areas in the country have the fastest growing house prices but aren't the most expensive areas. Usually on the edge of expensive areas. Also places that yield high rental incomes. I know that a while back Lincoln was such a place. Look for a place where it's still possible to buy a small property/ flat for around 100k. If you can't raise a deposit maybe go in with a relative who can provide that for a stake in the flat, or even as a loan whereby you pay them back at slightly over what they would get by putting it in the bank ( and you'd get it way cheaper than a bank loan) . Put tenants In the flat immediately and their rental will pay the mortgage with maybe a bit over. Sit on this property and let it go up in value , maybe 5 to 10 years, depends on the house market. When it's made enough money for a deposit in a place where you want a house, move into the flat yourself for a while making it your primary residence( thus avoiding Capitol gains) , then sell it. You can now use that money as a deposit and what you were paying in rental will now pay the mortgage your own house.

You know your sh!t in planning ahead alright.

I'm facing a slight dilemma and your post comes in handy......at this mo since I'd be looking to go into a risky investment (kind of an expensive landed corner unit) early next year and want to live in it. In order to do this I've put one of my apts for sale, to help me with the DP. Problem is the new place would be a bit of a journey from the city center (where I'd have to open an office for my boss sometime October) and the installments would be raking me on the edge every month. But I have a lot of confidence in this area picking up in the next 5 years....so yeah, maybe just rent it for a low sum at partly furnished (they can destroy the furnitures if they want) and then move in a bit later (a year or two later) than planned.

[racechick]

I'd let it unfurnished. Just ready for someone to move their own stuff in ( kitchen and bathroom obviously have to be in) check the tenants rights as well because I think they're different depending on whether they rent furnished or unfurnished. But that's probably different from country to country.

[Jabberwocky]

If you rent furnished in the UK it has to have the appropriate BS labels.

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[spankyham]

Perhaps landlords have way better rights in the UK. In Australia, you buy a flat at the lower end in market price you will get the lower end in rent paying capacity. Tennant gets in, trashes the place pays no rent, complains about anything. If you have every bit if paperwork done perfectly, and the tenant doesn't claim to have nowhere to live them maybe you may get them out in 120 days - given you get speedy court dates. All that time you have to make your mortgage payments plus your own rent payments all from your personal income. I'd strongly advise against the lower end in any property market. If you only have 100k, perhaps look for an aggressive property trust in a promising market. If you're keen, there are plenty of good tools for all sorts of trade options. Pick and study one you like, get some good rt analytics sw and do your own investing. Stay well clear of all fin advisors - they are mostly parasites who are full off themselves but know bugger all.
I think real estate is a must in every investment portfolio, but it should be balanced with other instruments.
Personally I use RE as a banker from other investments. Personally shares have yielded the best roi both short and long term. But roi isn't everything.