advice to reinvest money into property or pay off mortgage?

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    advice to reinvest money into property or pay off mortgage?

    I am wondering whether to pay off my existing mortgage or purchase another small property with my savings and another mortgage with my partner? We are currently renting and I hate to pour so much money down the drain. I don't feel very secure about it and would much rather my own property. I can not work so rental income is my only income. Would be god to get any thoughts on this. Many thanks

    #2
    Given your circumstances regarding employment and the need to maximise rental profit my advice would be to pay off the outstanding mortgage and if you have surplus capital to utilise towards the deposit on a joint ownership basis but ensuring that an agreement is structured for the repayment of your percentage share of the deposit plus the same for any increase in capital growth so that you are not disadvantaged and on a worst case scenario take steps to return to your unencumbered property. Others however may have different views and recommendations.

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      #3
      For most people investing in their own home gives the best return (because the gain isn't taxed).
      But if rent is your only income getting a residential mortgage might be quite tricky.

      Normally the best answer is to work out the options in a spreadsheet or calculator and compare the outcomes.
      There's usually different results over different time scales (and some of that depends on what your other plans are) and you need to make your own assumptions about interest rates and other things.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        #4
        If you have a spare bedroom, you can let to a lodger and if the rental income is below £7000 per year, not required to report in your tax return,.

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