Equity and options

Pearl1

Hi, after some general options, advice, etc
I have equity available on a couple of properties, maybe looking a buy to let or doing a refurb, investments also maybe.

Property 1. Mortgage free, value £185000 (rented £705 PCM)
Property 2. Mortgage £130000, value £375000. (Sole residence)

Basically if you were in this situation what would you do to maximise the equity

Thrugelmir

Sell the let property. A gross pre tax yield of 4.5% is very low.

You'd be better off switching the equity into a pension fund.

Or using the equity to buy properties that had a far higher yield. I would be targeting at least 8%.

CLAPTON

Pearl1 wrote: »

Hi, after some general options, advice, etc
I have equity available on a couple of properties, maybe looking a buy to let or doing a refurb, investments also maybe.

Property 1. Mortgage free, value £185000 (rented £705 PCM)
Property 2. Mortgage £130000, value £375000. (Sole residence)

Basically if you were in this situation what would you do to maximise the equity

your equity is
185,000 + 375,000 - 130,000

what does the question mean?

Pearl1

Thrugelmir wrote: »

Sell the let property. A gross pre tax yield of 4.5% is very low.

You'd be better off switching the equity into a pension fund.

Or using the equity to buy properties that had a far higher yield. I would be targeting at least 8%.

A Buy to let with a 7-8% yield was initially what I was looking into.
Pension funds I have limited knowledge on so at present will opt against.
If I did sell the rental property I imagine CGT would take effect??