Sell my propery - rent - but buy to let with proceeds.

1957999

It looks like come the Spring I will probably have to put my house on the market.

I will be able to afford to buy what I would like, so I have been thinking of renting...and then using the equity from this house to buy two small properties to rent out.

This would pay my rent, and maybe a bit left over, either way at least I would still have property.

I am 53 have no children and single, so to release the capital and hopefully make life a little easier seems the way to go.

Does this sound like a reasonable plan for investing my money, as I still believe that property is a sound investment.

Thanks

CloudCuckooLand

Why not buy 1, live in it, and get another if you want to "speculate" a bit?

The problem with renting, especially in later life, is that you can be moved on at the whim of the landlord. Might be ok at 53, but when you are 63 you might find it less appealling.

1957999

There is not enough money to buy, I need some land, as I have animals, so this is my only option really.

Once all my animals have departed 4 years maybe slightly longer, then I will sell the rentals and buy my own little place.

I would not sell if I could hold on here, I have got to try and make the best from a not so good situation.

Thanks

CloudCuckooLand

You seem to have missed a "not" out of "I will be able to afford to buy what I would like", then...

If you cannot buy the land you need, then ok go into rented.

As regards buy-to-lets, and looking at your other posts, I wonder if the maths adds up?

1957999 wrote: »

The house was valued by them (2 years ago at £257.000) and I have a mortgage for £155.000, according to the estate agent it is still worth between £250.000 - and £260.000).

I actually bought out my ex, as we had owned the house between us for 15 years - I just changed the mortgage over to the Halifax.

Thanks

If you sell, you come out of it with about £100k. What sort of places will you get two of, for £100k? What sort of rents will they command? Will they be the sort of tenants you would want to deal with, or rely on for your own rent to be paid on time?

I'm not sure the profit of two tiny flats (presumably) is going to be enough to fund your rental of a house with land, anyway. And that of course assumes that the places attract good tenants, who pay reliably, look after the place, and so on, as many amateur landlords come a cropper find to their cost.

If two £50ks are deposits on BTL mortgages, to get bigger places, that means your profits will go in mortgage interest to the bank.

Its one thing to have a "punt" on BTL, being already secure in a place of your own. To have to make profits to pay your rent, is a bigger gamble altogether.

Not for me.

1957999

I was not asking if 'anyone' elsewould do this.....I was asking for advice for me!

Sometimes on this board you cannot win, if people post they cannot afford the mortgage they get slammed, and they when they ask for advice as to the best way to try and stay a float they get slammed.

Until recently I had other plans sometimes life comes along and all those plans go out of the window.

Of course, I could take all of my elderly animals and have them all put to sleep, take my money and buy a spot - then I would not have to buy two cheap places would I.

You, also assumed, I was a 'novice' when it comes to renting out places, which is not so - my family have had rentals for years, I was looking for help as it whether it would work for me, given my circumstances.

Thanks anyway

CloudCuckooLand

No-one here KNOWS you. Given WHAT circumstances?

We can only go on the detail you choose to post.

I haven't said you have to put animals to sleep. I haven't said you must buy. I have not slammed you.

I have had to assume a range of things, as you haven't told us anything.

In order to drag out of you some answers that might give a clue to your risk profile, attitude in life, etc, I have pointed out pitfalls to gauge your response.

No-one can answer "Does this sound like a reasonable plan for investing my money" without a clue to your attitude in life.

A Financial Advisor would sit you down and try to quantify your risk attitude, but that would cost you time and money.

As you haven't bothered to expand on any details, I'll leave the thread for others to waste their time.

1957999

CloudCuckooLand wrote: »

No-one here KNOWS you. Given WHAT circumstances?

We can only go on the detail you choose to post.

I haven't said you have to put animals to sleep. I haven't said you must buy. I have not slammed you.

I have had to assume a range of things, as you haven't told us anything.

In order to drag out of you some answers that might give a clue to your risk profile, attitude in life, etc, I have pointed out pitfalls to gauge your response.

No-one can answer "Does this sound like a reasonable plan for investing my money" without a clue to your attitude in life.

A Financial Advisor would sit you down and try to quantify your risk attitude, but that would cost you time and money.

As you haven't bothered to expand on any details, I'll leave the thread for others to waste their time.

You only had to ask if you wanted more info - you do seem to opt on the rude and aggressive side when you post answers - neither is there any need to shout!

I am more than willing (and will do so) when the time comes to pay for the correct information, I was only trying to get some 'helpful' advice before hand.

Thank you for your time I will not bother you again.

getmore4less

1957999 wrote: »

There is not enough money to buy, I need some land, as I have animals, so this is my only option really.

Once all my animals have departed 4 years maybe slightly longer, then I will sell the rentals and buy my own little place.

I would not sell if I could hold on here, I have got to try and make the best from a not so good situation.

Thanks

Before even looking at the profitability on a monthly basis of the rentals to achieve this goal you sell 3 times and buy 3 times in 4 years rather than the 1 buy 1 sell of the sell/rent/buy senario, thats a lot of cost to recover.

Ok there is the risk that prices rise a lot over the 4 years and price you out but what % befere you cover the costs of the extra moves?


What are the numbers for each place along the way? ( need these to have any chance of giving an opinion on the doability)

1957999

Give or takea little either way, I would probably take about £100.000 from selling this place once I had paid all the expenses etc.

Where I would be looking to buy I could get two 3 bedroomed terraces for about £30.000 each, plus fees - that is a rough guide, but two properties are certainly obtainable for about £75.000.

This is a University City, so there should not be any problem renting out, or I could let them straight to DHSS claimants, true the property will get knocked about a bit, but I am not thinking of buying into the luxery end of the buy to let.

For what I am looking to rent for myself I would be talking roughly £750 a month tops.....it could be £550 (I went to look at 2 places last week, which offer what I want and they both fall between that price bracket - but £750 would be my ceiling.

I work for myself and that could move with me, no problems, plus a small part time job which I would loose, but there are others.

All I am really wanting to do is protect what I make from the sale of the house, and I think buying property is the best way as there are still lots of bargains to be had.

If, at some stage in the future if I need to release that money then I will have to sell one or both, I may even own more if my business well and truly takes off.



Thanks

Thrugelmir

1957999 wrote: »

I will be able to afford to buy what I would like, so I have been thinking of renting...and then using the equity from this house to buy two small properties to rent out.

Often one of the criteria for obtaining BTL mortgages is that you already have own your own property (albeit mortgaged). As this gives a degree of security to the lender.

1957999

But I would be paying cash for the properties.

Thanks