Purchasing a second property....

orkali

Hello all, first time poster here looking for some advise.

I have the chance to purchase a second property which I would rent out in the winter and possibly holiday accomdation in the summer.

Now for some figures, the second property is valued at £95,000. Our current mortgage is £369 a month but we are overpaying an extra £100 a month on this. We have a combined salary of £60000. Would like to think we could rent the property for £600PCM going by other rental properties in the area.

Our current house was bought for £65000 but I have put an extension on since then, and have been told to expect a valuation of around £140,000.

So does this sound a feasable plan or do you think its pie in the sky and could be a burden round our necks:huh:

The property is situated on the edge of 20acres of land my parents own, but I croft this land and was looking to trying to own the whole area.

Thanks for reading and sorry it goes on a bit...probably more detail required but that is a broad outline of the story..

bigadaj

Holiday rentals would probably be considered higher risk than a normal buy to let, and you would need a good deposit presumably by remortgaging your own house. The income multiple would not be too bad, though you need to confirm your current mortgage, however this is a commercial venture so the rate could be comparatively high.