second property

tommytyrie

Me and my partner are looking to purchase a second property, we are currently with Abbey and have a mortgage for 2 thirds of the property value. We are looking at property in uk and overseas, would be better or possble to have one mortgage for the two properties or will it be better to seek a seperate buy to let mortgage?

Conrad

How much equity do you have? Please keep in mind prices have fallen and surveyors are tending to value very conservatively. ALL clients of mine have over estimated thier value in the last few months. Forget property where the sale was agreed say 3 or 4 months ago as prices have been falling every month.

I've been investing abroad a few years, and what I've learned is it's an absolute minefield, with costs around every corner, so getting it right is very difficult. In fact there is only one development I would consider at the moment.

Buying in the UK makes more sense I think as long as you buy at a heavily discounted price. Target motivated sellers.


Unless you are buying very cheaply I guess you will require 2 mortgages.

Obtaining mortgages abroad is more difficult than in the UK.

MY NUMBER ONE TIP RE BUYING ABROAD IS: Forget everything an agent tells you UNLESS its written into your own personal sales contract. Even statements such as 'a golfcourse' is being built are often just plain fantasy.

Do your own homework and trust no one. Ive seen it so many times where people are sucked in my seemingly large experinced agents with glossy brochures and an efficient looking head office, only for that company to dissapear in a puff, leaving buyers completely shocked. No one to call, no one knows where the money went etc. As an example a very large established firm called Superior Worldwide went pop recently. People are having to go to US courts with a vague hope the directors might pay something back!

TIP 2 - Agents will extole the virtues of new developments telling you the property is a great investment, yet if you need to suddenly sell, guess what? They will not be remotely interested in helping you re - sell. This is because they tend to want the next latest greatest new development and have no motivation getting involved with your little one off again.

TIP 3 - Rental season. You really want somewhere that can be let all year. Again many come unstuck here. My opinion is to go for waht I term 'Centre parcs in the sun', if you want a long rental season.

TIP 4 - Ongoing costs. Particularly if you purchase a property that is not brand new, expect never ending costs - things you probably would never have imagined such as a new bin, tracking down a remote for the TV, removing tile grout mould, replacing door handles, replacing the broom, new BBQ tongs, weed removal from the drive, pest control, replacing the cracked glass sauce pan lid, new can opener, dealing with neigbours tree shading you out and on and on and on.

I would prefer a fully managed, fully maintained 5* property on agated unique development to minimise hassles like this.