Would love a second home,how to fund?

littlereddevil

Advice required please although I realise this may be an impossibility
I would love to buy a second property ( in another city) to use now for breaks and then move into when we retire (maximum 10 years)
The house I would like to buy costs around £215000
We live in a house valued at £200000 with a mortgage of around £85000
We have savings of around £100000 and an annual income at the moment of over £70000
Would it be feasible to buy this second property and if so how best to fund it?
When we retire we would sell the house we are in at the moment
thankyou n advance for any advice

JCR

I have done this with my sister. She had a house which she remortgaged, in order to give me a 15% deposit for a house, which is what is generally required for this type of purchase. I lived in that house for two years and she has now remortgaged again and we have bought a house together and are renting out the other two houses. It is the only way to finance a second property unless you are a very wealthy person. Good luck.

manhattan

why dont you use the 100k to pay off the first mortgage? surely you would be better off than it sitting in a high interest account?

brainiac44

Advice required please although I realise this may be an impossibility
I would love to buy a second property ( in another city) to use now for breaks and then move into when we retire (maximum 10 years)
The house I would like to buy costs around £215000
We live in a house valued at £200000 with a mortgage of around £85000
We have savings of around £100000 and an annual income at the moment of over £70000
Would it be feasible to buy this second property and if so how best to fund it?
When we retire we would sell the house we are in at the moment
thankyou n advance for any advice

my personal advice to you is go right ahead. full steam.
dont think twice about it. just plough all your hard earned and saved equity into a speculative bubble. then wait for the massive profits your hoping for...its as easy as that....

this will devastate your retirement.
wait until your ready to retire - then sell your home and buy the new one.

dont own two houses on one wage.
not unless you really dont want to stop working.

you might find the comfortable retirement fund you have now will be shot to bits by negative equity and rising interest rates.

dont forget your pension will only follow the cpi index. not booming house prices or falling house prices. the debt will be yours to pay.

there is NO ADVANTAGE moving into that now. wait. please have some sense and wait.

littlereddevil

Thanks brainiac44 have got my sensible head back on and have decided to forget about it