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Pay off mortgage or buy property to let?

accobra
accobra Posts: 7 Forumite
in House buying, renting & selling
Hi there,
I am in the lucky position of having some money gifted to me. I would like to know please, is it better to pay a large amount off our existing mortgage or use the money to buy a flat mortgage free to rent out and receive an income?
I Would be very grateful for some advice. Thanks

Comments

  • mlz1413
    mlz1413 Posts: 3,095 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    pay off exsiting debts, highest interest first
    credit cards
    bank loans
    mortgage

    then buy some books on being a landlord, book and go on a course. then you can decide if you want to put a 40% deposit on a B2L and you will be able to work out the yield in a rising interest climate.
  • accobra
    accobra Posts: 7 Forumite
    Thanks MLZ1413 for your speady reply.
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    Yep, pay off all debts then the mortgage. Being a landlord isn't simple or trouble-free but I suppose it all depends on how risk-averse you are.
  • rfowler
    rfowler Posts: 486 Forumite
    Part of the Furniture Combo Breaker
    I would buy a Flat mortgage free and witht he rent I would make over payments on my mortgage.
  • missile
    missile Posts: 11,812 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    rfowler wrote: »
    I would buy a Flat mortgage free and witht he rent I would make over payments on my mortgage.

    I am guessing you are not a LL?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • ladymarmalade1970
    ladymarmalade1970 Posts: 342 Forumite
    missile wrote: »
    I am guessing you are not a LL?

    I am and i would advise that as well.
  • accobra
    accobra Posts: 7 Forumite
    Thanks for your replies. I suppose I thought that if I bought a flat with the money, this would give me a nice supplement to my pension later on, and hopefully the flat would increase in value.
This discussion has been closed.
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