All in on property?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    All in on property?

    Hi all, I'm a postman aged 37. I have one buy to let on a 5 year interest only deal. Value 230k, mortgage 150k long term tenant. I have 40k in the bank. I have one current account, no loans, credit cards, savings or pension. Only direct debits are the mortgage and mobile phone.
    I am currently living back at the parents but I would like to be out before I am 40.
    ​​​​​I have a couple of options I can see:
    1. I rent privately a small flat ( I don't need a lot of space) for a similar price to the rent I collect from my buy to let. Do this for a year or two and get a better idea of what sort of place and area I want to live in before committing to buy again. In the meantime I could invest the 40k in fixed savings, or index trackers so I'm a bit more diversified.
    2. Continue saving the 40k up to 50 k + for a deposit on a small flat with another 150k mortgage . So buy property 2 for around 200k or more depending on deposit. This means all my money is in property .
    I will also add I have a large sum of money (6 figures) being repaid to me weekly from a couple of friends. The weekly repayments (£150-250) cash pay for all my shopping , fuel and presents, and so on which is why I can save rapidly.
    Any thought or advice appreciated.

    #2
    If I didn't have 80 k invested in property already the answer to my living situation would be obvious - buy somewhere to live.
    ​In this case though I already have a property , just it's let out. Does the fact I'm happy to leave it let out give me free reign to rent somewhere myself safe in the knowledge im a property owner ? And then use my other 40k savings to diversify , possibly stocks , P2P or fixed savings?
    Or should I avoid paying private rent at all costs and go all in on another property, even if it's a small studio or one bed? Then view my let property as future retirement income and not worry so much about other types of savings/investments?

    Comment

    Latest Activity

    Collapse

    • Mortgage ERC
      Landlord4321
      Good evening,

      I would be interested if anyone had any views on mortgage early repayment charges. Unfortunately my circumstances have changed significantly over the last 8 months and I am in a situation where I am forced to sell my buy to let property, mainly due to a change in my financial...
      19-07-2019, 20:18 PM
    • Reply to Mortgage ERC
      loanarranger
      I think that your issue is experienced by many novice investors and naturally the whipping boy has together lender so may I take this opportunity of clarifying certain aspects of product pricing and by association funding.
      If you take out BM Midshires , The Mortgage Works who are funded by Lloyd’s...
      20-07-2019, 16:06 PM
    • Reply to Mortgage ERC
      Landlord4321
      I believe the ERC is a set rate. Some customers will pay the fee that will equate to less than the existing interest balance so will benefit. Other customers nearing the latter part of the deal will pay a charge considerably higher than the remaining interest balance.

      I guess like anything...
      20-07-2019, 11:30 AM
    • Refinancing BTL when beneficial ownership has been moved into an LLP
      StevieG
      I moved the beneficial ownership rights to my properties into an LLP two years ago in response to section 24; however, my existing broker is unable to obtain a new mortgage for one of the properties as the tax computations associated with my SATRs now have a line for 'income from partnership' instead...
      20-07-2019, 10:29 AM
    • Legal fees or cashback for remortgaging
      blinko
      Hi guys I'm doing my first ever remortgage I wanted to ask I have 2 products to choose from both are offering me a good rate 5 year fixed 2.1% £1,000 arrangement free with free standard valuation but one product offers free legal fees and the other offers £300 cashback which one do you think I should...
      16-07-2019, 17:18 PM
    • Reply to Legal fees or cashback for remortgaging
      loanarranger
      I agree it allows the borrower a greater degree of control over the legal processes.
      20-07-2019, 10:02 AM
    • Reply to Legal fees or cashback for remortgaging
      jpkeates
      Hello 2008, welcome back!...
      20-07-2019, 08:48 AM
    • Reply to Mortgage ERC
      loanarranger
      You are indeed correct that Fixed Rate Mortgages do have products which have an ERC on a reducing scale, a feature which is fully detailed in the Key Facts Illustration, unfortunately as in your case the ERC is set at a Fixed percentage throughout the initial incentive period, this in itself might have...
      20-07-2019, 04:11 AM
    • Reply to Mortgage ERC
      Landlord4321
      Most mortgage companies offer a progressive ERC where the fee changes every year which reflects the lenders actual losses. In this case the ECR is fixed for the entire period, and I'm nearing the end of my term.

      The charge they will make is a lot more than the interest for the remaining...
      19-07-2019, 23:20 PM
    • Reply to Mortgage ERC
      boletus
      If you accept you freely entered into a business contract where the terms were explicitly stated and you were aware of those terms, then why now say it is "daylight robbery" to be held to those terms?...
      19-07-2019, 22:39 PM
    Working...
    X