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1 month mortgage free wannabe
Comments
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Sounds good
have you taken into consideration the tax paid on rental income when there is no mortgage to off-set?0 -
My accountant is sorting out the tax side of things. To be honest, I'd rather pay a bit in tax and not have to carry the weight of 2 mortgages (I have my own property too!).
Once I have dealt with this house, then I need to go back to saving to pay off my own mortgage which I'm tied into til June next year. Thereafter, I hope to be able to pay it off. But that's for another thread!OVERDRAFT TODAY:£36,100
CASH PAID TOWARDS SISTER'S HOUSE NOW: £123,9000 -
Just booked a late meeting tonight to start at 7pm - I'm not sure I would have ordinarily agreed but it all helps towards my goal, so I said an emphatic yes!OVERDRAFT TODAY:£36,100
CASH PAID TOWARDS SISTER'S HOUSE NOW: £123,9000 -
Hi, your attitude is amazing and I really think you'll acheive your goal. One thing has occured to me though... I can understand if you were doing this to pay your own residential mortgage off but why a buy to let. property..You can get the same return by taking an interest only mortgage at 85% the cost of the property..example.
you have 150k cash to spend and you buy one house to rent out, in 10 years that property doubles in price so you have 300k...great 150k profit.
However if you put only 15% of your money into that property and used the other 85% of the banks it would allow you to use the rest of your 150k to buy several other properties.
So 150k as a 15 % deposit on property would allow you to purchase several properies worth a total of £1 million...
So if those properties doubled in value in 10 years that would be property worth a total of 2 million, take off the banks 850,000 in mortgages and you are left with £1.15 million in equity.
All along the way your rental incomes have paid the interest only mortgage payments and any surplus can be used for repairs etc...
I guess it all depends if you want to be a property investor, it just strikes me that someone with your commitment could save up 15k a time and buy a property say every 6 months to build a portfolio... you could aceive a real investment tool in 2 or 3 years!
I don't know about you but 150k doubling to 300k in ten years or 150k changing to £1.15 million in ten years... I know which i'd do (if i could )
Property on average has doubled in value every 10 years since around 1930, no reason for the trend to stop now...0 -
You put forward a really good argument there however I'm not doing this to build an empire. My sister and her family have seen this house but are not in a position to buy at the moment so I'm going to rent it to them and sell it to them at market value when they decide the time is right for them to get a new mortgage. Whilst it will make me money, it's not my primary aim.
Having said that, what it is doing is demonstrating how much I can achieve when I apply myself!
I think once this house is done and dusted I'll focus on paying off my own mortgage (my tie in ends in June next year) and once I am all clear, then I'll start building a bigger property portfolio.
Whilst the quickest way is to borrow and speculate, my mindset is pay cash or you can't afford it!
Just a quick update, tonight's meeting went well so that should come in fairly quick and be another 4% towards the house.Happy days.
Also an old deal I chased up the end of last week has now come back to life which is another 1.5% towards the house.
Law of attraction in action!OVERDRAFT TODAY:£36,100
CASH PAID TOWARDS SISTER'S HOUSE NOW: £123,9000 -
Great!
I wish you the best of luck, your attitude will bring riches in itself, and not just one's measured by money!
keep us updated!!0 -
I hope you manage to achieve your goal, you are obviously working hard towards it, so good luck, we will keep our fingers crossed and wait with interest to see how you get on!!!!0
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OK today's not been the most financially rewarding so far. Got £500 in.
Anyway, I'm editing a letter I got from consumeractiongroup.co.uk to my bank to reclaim my bank charges for the last 5 years, as this will be another few hundred quid towards the house.
I'm also working on bringing some deals to conclusion as that also means a lump sum payment and whilst they might not come in today, they will this week.OVERDRAFT TODAY:£36,100
CASH PAID TOWARDS SISTER'S HOUSE NOW: £123,9000 -
Today is going to be a day full of challenges!
1) I don't have a passport, I have no idea where my drivers licence is and I haven't seen my tax code notification.
2) My accountant doesn't appear to be in any rush to chase the Inland Revenue for it and I don't know what the hell I'm doing so can't take over.
3) My mortgage broker goes on holiday for 2 weeks on Friday.
4) My sister wants to move in at the beginning of September as the kids go back to school and I can see the timing being stuffed.
5) The solicitor I want to use is not available til later today and we need to crack on with this stuff pronto.
Argh, vent over with. That feels better.
I now have an extra £910.90 to find for solicitors fees so... I'll update my pie chart tonight with this woeful addition and get myself fired up again to make shedloads of casharoo.
Nothing happening on the sales front just yet but I'm determined I shall not be beaten. I thought about spiders this morning and the "law of attraction" sent a big spider into my house and I swear that has thrown my whole day out!OVERDRAFT TODAY:£36,100
CASH PAID TOWARDS SISTER'S HOUSE NOW: £123,9000 -
lifechanging wrote:
Nothing happening on the sales front just yet but I'm determined I shall not be beaten. I thought about spiders this morning and the "law of attraction" sent a big spider into my house and I swear that has thrown my whole day out!
Have you never heard of money spiders!!!??? Me thinks you need to be positive towards your little spider friend!!! Laws of Attraction and all that!! :rotfl:2024 Challenges- Grocery Budget (January £0/£300)
- Decluttering (Underway!)
- Frugal Living (January £0/£500
- 24 in 2024 (0/24)
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