Gallygirl's "A journey of 121,226.67 pounds begins with a single penny" diary

gallygirl

inigma wrote: »

Hi GallyGirl, I have just learnt how to subscribe to threads and yours is the first one I have subscribed too! Looks like you are properly slaying your mortgage!

Don't know about slaying it - giving it a good poke in the eye with a sharp stick though

Slept in this morning then hit all the traffic, just arrived at work :mad:

edinburgher

GG - is there a 'Wednesday is finished and we're nearing the home straight' smiley?

Mortgage_Reduction_Novice

I don't know... I'm away from MSE a few months and when I return GG's handing out houses! Crikey!

Mortgage_Reduction_Novice

edinburgher wrote: »

GG - is there a 'Wednesday is finished and we're nearing the home straight' smiley?

Wednesday is of course "half past the week" day. And Thursday is weekend-eve.

gallygirl

edinburgher wrote: »

GG - is there a 'Wednesday is finished and we're nearing the home straight' smiley?

Not sure - how about this?

Mortgage_Reduction_Novice wrote: »

I don't know... I'm away from MSE a few months and when I return GG's handing out houses! Crikey!

:rotfl::rotfl::rotfl:

BlueMoo

I always say Thumbs-Up Thursday and Fist-Pump Friday!
'Fraid the names for the other days of the week shan't be mentioned!

cathybird

I really must look into putting some money into my mortgage ... If I can save £1,000 a month, some of that at least could go into paying it off.

gallygirl

What's the saying - 'Man plans and God laughs' :rotfl:. Tenants in btl 1 have given in notice, to move out start of December. I'd already contacted them to see them at weekend re 'damp' which is actually condensation but has the same impact really. My initial reaction, and Mr GG's, was to sell as we can't seem to resolve this condensation problem. However, have been doing sums. Projected equity after clearing mortgage is around 53k, plus say 22k savings by the time we sell. That's not enough to buy somewhere and am guessing btl2 (the one the tenants want to buy) will take a bit longer to progress. So, options are either:
1. keep and relet
2. sell and bung into various 1,2 and 3% accounts. Wait till btl2 is sold then buy 2 properties with joint pot.
3. sell and then borrow money off Mr GG temporarily till btl2 sold and can repay him
4. sell and buy with flexible btl mortgage with view to paying off asap.

Pros/Cons to follow.........

gallygirl

Pros
Gross yield is around 7% :eek: :T
Simplest option - too many 'what ifs' with others?
In good 'location'
Low turnover of tenants as offering a 'council house' style property - only 2 tenants in 8 years. Have the impression generally higher turnover in newer, private-build properties?
Cheapest option
Other property would need up to 40k put to it and then would be getting much lower yield (not much more rent for a lot more money)

Cons
Ex-council house.
Condensation problem - can we nail it? Will it come back?
Not in best 'area'. Won't get good capital growth - but that's not what we bought it for.
Older house (50's?). Possible roofing problems at some stage in future?
Newer house in better area would be cheaper to maintain and likely to get better capital growth.
Bathroom - needs doing at some stage so do now? Can get decent set for £300, need to fully tile or reskim walls. How much will this cost in total? Worth doing anyway, even if we're selling as it lets down rest of property?

gallygirl

Pros
Could make informed choices with large budget
Think of the fun of picking 2 houses


Cons
Being out of the market - prices definitely on the rise.
Think of the stress of buying 2 houses :eek:
More work to get 2 new properties ready to rent at around same time.
How long would this take?
Missing rent not offset by piddly interest
End up with lower yield.