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

gallygirl

Pros
Could progress quicker
Stay in market

Cons
Lower yield.
Couldn't cope with stress of increasing Mr GG debt :rotfl: (even though he'd be lending to 'the business' i.e. both of us )
What if DS wants to buy house quicker than expected, no funds available (we've talked about Mr GG buying 1/2 of my mum's house to fund this and I would then clear Mr GG debt)
Now not a good time for Mr GG to commit due to various other background plans

This isn't really a goer I think.

gallygirl

Pros
Could progress quicker
Stay in market

Cons
Lower yield.
Decent btl rates at 2.5% attract an arrangement fee of around £1,300 :eek:. For fully flexible no fee the rate is 4.5% (same mortgage I had on mum's previously).
Silly to pay interest and costs for the sake of a few months

This isn't a goer either really.

gallygirl

Either keep and let out or sell and wait.

Haven't had convo with Mr GG - won't need to bother now, will just let him read this

Arkers

Hi GG - what a nice dillema to be in....I have two x student lets fantastic retun, but a bit more hassle at times. I sort of get the impression from your posts that you are looking for an exit plan in the not to distant furture, so you have to ask yourself(and probably have) "how much do I want to take on in the future," in view of this you either bite the bullet on BTL1 and get the repairs done and sit back and reap the rewards, or you get rid now. All the essential repairs can then be tax dedcuctable. I factor in 10% per annum for repairs and the like. I spend this regardless, and update things. There is a myth that students will put up with the young ones' digs, this is not so.

Whatever you decide it looks like a win win! :j

I hope this post was not too serious for you....dig your SOH!!

gallygirl

Arkers wrote: »

Hi GG - what a nice dillema to be in....I have two x student lets fantastic retun, but a bit more hassle at times. I sort of get the impression from your posts that you are looking for an exit plan in the not to distant furture, so you have to ask yourself(and probably have) "how much do I want to take on in the future," in view of this you either bite the bullet on BTL1 and get the repairs done and sit back and reap the rewards, or you get rid now. All the essential repairs can then be tax dedcuctable. I factor in 10% per annum for repairs and the like. I spend this regardless, and update things. There is a myth that students will put up with the young ones' digs, this is not so.

Whatever you decide it looks like a win win! :j

I hope this post was not too serious for you....dig your SOH!!

You're right, a nice dilemma :T. Not really looking for an exit strategy from btl's, just from the UK :rotfl:. That's partly why I'm thinking of selling and going for newer property as less maintenance to worry about (though DS will be managing them and I have a good team of workmen I trust). What I'm concerned about isn't so much sorting out repairs but doing upgrades - how can I make a decision if a bathroom needs just a lick of paint to last a few years, some new tiles or a total rehaul? With newer properties I won't have to worry about that for a good while. BTL1 has a reasonable kitchen and new boiler and replastered walls so is in good nick apart from bathroom (picture a lovely peachy/gold corner suite with faded gold taps :eek:). If I could just sort out the condensation.......

I'd probably go for student accomm if we had a uni/college near here.

Edit: I can do serious you know, just generally choose not to

gallygirl

Off to London later. Plenty time so think I'll walk (not to London obviously, once I get there :rotfl:). Just checked tfl website and should take 57 minutes, looked at route and I actually know it so I shouldn't get lost . Directions include bearing right at St Paul's Cathedral which is kinda groovy .

Will be wifi pirate on train obviously

BlueMoo

Wow! Envious of your options.

I know you are not expecting capital growth, but depending where you are, the SE in particular seems to be very strong and prices rising. (yes, it is a prediction and a risk - just stating what is currently being reported)

Are your BTLs in your area? Would your son consider moving into one of them?

AlexLK

Gallygirl: If you were round here £77k is enough to buy a BTL property outright, which you'll get £475-500PCM for. :rotfl: Perhaps you can see why I would like to get into this now.

2 tenants in 8 years is rather good. Mind, my parents have one house they've been letting out to the same couple for over a decade! :eek: Not sure on the new build type places.

In regard to the bathroom suite; do you have a "friendly" plumber? Parents have one that will fit a basic (read CHEAP) bathroom suite for £200.

gallygirl

BlueMoo wrote: »

Wow! Envious of your options.

I know you are not expecting capital growth, but depending where you are, the SE in particular seems to be very strong and prices rising. (yes, it is a prediction and a risk - just stating what is currently being reported)

Are your BTLs in your area? Would your son consider moving into one of them?

Midlands, and very cheap house prices, though they are rising. BTL's all local but not what son would want and he is looking to buy next year.

AlexLK

If I recall correctly you have 6 BTLs? Sorry to pry but are they all mortgaged?

As for your son, are you set on giving him money to buy a house or can he fund himself?