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Advice please - 70k equity what to do with it?
Comments
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I think you are extremely rude.
Like I care what you think!!0 -
whambamboo, you appear to have low-balled the rental income there. That property is detached and waterside while properties currently available for 1200 a month rental are not.
No real need to worry though, since I found a property available for both rent of 1000 pcm and purchase for 257,000.
Interest only that one costs 963.75 pcm at 5%. Repayment over 30 years it costs 1241.67. Both for 231300 loan, 90% LTV. At 100% LTV interest only is 1070.83 and 30 year repayment is 1379.63.
1000 rent or 1071 interest only and you get 25-30 years of appreciation in property value? The interest only buy looks like a much better long term deal.0 -
jamesd wrote:whambamboo, you appear to have low-balled the rental income there. That property is detached and waterside while properties currently available for 1200 a month rental are not.
I live in just such a detached waterside property (with 1 extra bedroom) and pay £1100.My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.0 -
Good to hear that you got that price but it doesn't seem to match what I see there today. In any case, what are your thoughts about the property I pointed out and the price comparison for it?0
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jamesd wrote:Good to hear that you got that price but it doesn't seem to match what I see there today. In any case, what are your thoughts about the property I pointed out and the price comparison for it?
well your comparison is probably about par, but I'm not sure you're correct with your conclusion. Rents have historically been more expensive than owning, and with an example where renting is still cheaper even on 5% interest than owning. So logically prices should fall in the short-term, which suggests that although you'll be better of over 25 years, you won't be after say 5.My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.0 -
Perhaps. If there is a major crash it might well be less good to buy then rent for a few years.
Here's another property to consider, no links though: 77000 purchase price last December, 425pcm rent on BTL with rent raised from 395 to be exactly at the limit required to qualify for the mortgage. 25 year term and 5% for this one. 100% LTV repayment mortgage is 450 a month, interest only 321. Plenty of margin there between interest only mortgage and rent to make a buyer better off than a renter - 1250 a year so after buying costs you're probably ahead after the first year, ignoring property value changes. Likely to sell for around 86000, perhaps a bit more, today, based on recent sales and price changes in the street.
I don't disagree with your point that it can be more expensive to buy than rent but it does depend on the individual market and property.0 -
advent1122 wrote:Like I care what you think!!
Been working on your people skills eh?Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery0 -
Thanks to everyone for their advice/opinions!:T
Have seen IFA and am now researching all their suggestions plus all of yours.0
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