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What would you do??
joeblack066
Posts: 1,757 Forumite
Hi guys!! Okay, my life is complicated, but here goes anyway!!
Current Situation; Have a house on a mortgage, Interest Only, £920 pcm. Rented out for the next 9 years, currently getting £760 pcm for it, and I can't increase the rent for another 2 years. That means I have to add £160 pcm to it, which I have been viewing as my pension. I live in a rented property at £450 pcm. There is approx £11k equity in the property after ant redemption fees paid.
Have just looked at a house £96k, which would be perfect for me and mine. If I sold the other house, then I would have £610 pcm for the mortgage on the house to live in, meaning I could pay it on Repayment, not interest only. I would also be able to clear my debts, leaving me with an extra £100 pcm. The added bonus would be that I would be in my own house! Current Landlords won't even let me put a pic up!!
I have a friend who is happy to buy the £96k house immediately for me, and rent it to me, so that I don't miss out on it while I sell the other one. (he's a good mate, lol!!)
So the upshot is, after my other house is sold, I would be investing in the property, would be rid of the millstone that is the rented out house, and debt free!! Would you go for it??
Current Situation; Have a house on a mortgage, Interest Only, £920 pcm. Rented out for the next 9 years, currently getting £760 pcm for it, and I can't increase the rent for another 2 years. That means I have to add £160 pcm to it, which I have been viewing as my pension. I live in a rented property at £450 pcm. There is approx £11k equity in the property after ant redemption fees paid.
Have just looked at a house £96k, which would be perfect for me and mine. If I sold the other house, then I would have £610 pcm for the mortgage on the house to live in, meaning I could pay it on Repayment, not interest only. I would also be able to clear my debts, leaving me with an extra £100 pcm. The added bonus would be that I would be in my own house! Current Landlords won't even let me put a pic up!!
I have a friend who is happy to buy the £96k house immediately for me, and rent it to me, so that I don't miss out on it while I sell the other one. (he's a good mate, lol!!)
So the upshot is, after my other house is sold, I would be investing in the property, would be rid of the millstone that is the rented out house, and debt free!! Would you go for it??
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Comments
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If it works out for the better on paper then go for it but check and double check everything before going ahead.Total 'Failed Business' Debt £29,043
Que sera, sera.
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Thanks IA, will be digging deeper tomorrow!0
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It sounds like a good idea but remember tenants have rights I would discuss this with a solicitor first.0
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I won't pretend to know the property market mate coz I don't. But....
If you are banking on your current property being your pension I'd be wary. Whats to say in 10 years time it won't be worth a quarter of what it is now?
As much as people think buying to let is the made to make a fortune it isn't risk free.
Me personally? I'd want the security and safety of paying off my own place as quickly as possible.
Does seem weird to me that you are paying someone elses mortgage while someone else is paying yours! :rotfl:0
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