Renting out property dilemma

[sb_]

UK : Suppose you have a good salary , a nice deposit and alternative sources of income access to a halal mortgage.

Would you prefer to :

option 1 : a house in a student area (so basically the rent is guaranteed) outside of London , averaging a profit of roughly 600-800£ a month (your mortgage is paid through their rent and you get 600-800 monthly on top)

Option 2 : buy a 2 bed apartment that you like, in London ( 0.3/0.4 miles from station, in a building that’s new and with amenities , and rent out the spare room, and that rent doesn’t fully cover your mortgage ? Renting out both rooms would cover my mortgage + 1.3-1.7k additional roughly.the con is that it would take me a bit more time to save some extra money that will be needed.

Edit : Mortage for option 2 would be 2k based on my salary, while mortgage for option 1 would be around 1972. I am not gonna buy through any first time buyer schemes . Properties similar to option 2 rent for 4k - 4.5k , while properties similar to option 1 rent for half of it.

I am not sure what’s better really

 

[princesst1]

@sb_ A simple calculation is Profit minus Debt is the best "option.

High Debt, Low Profit=Bad Deal

Low Debt , High Profit= Good Deal

 

[alinaseh]

@sb_ Who are you getting a mortgage from for option 2? Option 1 seems reasonable I guess but I am unsure what you mean by getting £600-£800 on top p/m. Could you expand on that?

 

[tessla]

@sb_ You have to consider whether you can afford or be eligible for a buy to let mortgage if youre not living in it.

 

[mauraftwi]

@sb_ Can you get a btl Sharia compliant mortgage in the UK?