We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
One mortgage free property or multiple BTL's?
msjl13
Posts: 2 Newbie
Hi I hope you can give me some advice, I have £150,000 cash for the purpose of buying a property to rent out. Shall I just buy one property mortgage free and rent that or purchase 3 properties with a £50,000 deposit each and then get a BTL mortgage for the remainder?
I am aware I will need to make enough in rent to cover the mortgage of each property and know my rental area very well.
My thoughts are that when i retire in 25 years, the mortgage will have been paid off (hopefully sooner) and I will have 3 properties mortgage free with the value hopefully have gone up.
Or am I just making it a lot harder for myself, and should I just go for the one property, any help greatly appreciated!
Cheers
I am aware I will need to make enough in rent to cover the mortgage of each property and know my rental area very well.
My thoughts are that when i retire in 25 years, the mortgage will have been paid off (hopefully sooner) and I will have 3 properties mortgage free with the value hopefully have gone up.
Or am I just making it a lot harder for myself, and should I just go for the one property, any help greatly appreciated!
Cheers
0
Comments
-
It depends on how risk-averse you are and how much time and energy you have to devote to your business.0
-
business_man wrote: »I think its your first BTL purchase and you need professional advise.
Leverage your debts as much as you can is all I can say.
Like it goes
EUREKA - LEVERAGE! Don't get rid of mortgages, take on as many and as much as you can!
Of course there's no chance that that strategy has any potential downsides
0 -
If this is your first BTL, I would buy one property mortgage free and see how it goes for a couple of years. You can then then buy another using the equity in your first property.
I think buying 3 BTL properties all at the same time is too much for a first time landlord.0 -
you could always one cash, get used to being a landlord and then borrow from the equity once you feel comfortable to finance another. That's what I'd do in these uncertain times. But I might just wait a bit longer as prices predicted to fall further.0
-
business_man wrote: »Leverage your debts as much as you can is all I can say.
Like it goes
EUREKA - LEVERAGE! Don't get rid of mortgages, take on as many and as much as you can!
Bad advice. You buy 3 properties in a falling market each £50,000 parcel in equity will be hit equally. If you have it in 1 property the reduction is far more limited.
However if you want to invest in the property market surely it is better to do this in a few years after prices have fallen. In the mean time you can invest in shares and high interest accounts. Share investments are out preforming property investments.
Always spread the risk with investments rather than one bucket.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
btl in these times..you are joking? i just see high risk...
Property investors are in for a rude awakening
http://www.moneyweek.com/investments/property/property-investors-are-in-for-a-rude-awakening-10904It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Where do you want to buy a property for £150k plus all associated legal costs what will be the return on your investment per month as for the cost of the property its only going to be about £600 pcm.0
-
If you have the cash then rents are going up in certain parts of the UK.
i have the cash but no way would i put it at such high risk.
Property investors are in for a rude awakening:T:T
http://www.moneyweek.com/investments/property/property-investors-are-in-for-a-rude-awakening-10904
UK house prices: falls to come
http://www.ft.com/cms/s/68cd02d8-4978-11e0-b051-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F3%2F68cd02d8-4978-11e0-b051-00144feab49a.html&_i_referer=http%3A%2F%2Fwww.housepricecrash.co.uk%2FIt is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
I didn't say how much cash, if you have £400k buy a flat in zone 2 London and you should be able to ride the storm. £150k in this day and age isn't really that much.i have the cash but no way would i put it at such high risk.
Property investors are in for a rude awakening:T:T
http://www.moneyweek.com/investments/property/property-investors-are-in-for-a-rude-awakening-10904
UK house prices: falls to come
http://www.ft.com/cms/s/68cd02d8-4978-11e0-b051-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F3%2F68cd02d8-4978-11e0-b051-00144feab49a.html&_i_referer=http%3A%2F%2Fwww.housepricecrash.co.uk%2F
Also 8% interest rates used to be the norm as I remember the interest rate getting to 13/15%0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards