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Barrow to buy to let or just use my own cash
Tourneo
Posts: 1 Newbie
Hi,
I've recently come in to some money and I'm going to invest this in buy to let properties (already have a few mortgage free properties)...let's say for arguments sake, I've got 500K
1) would you stay mortgage free and just buy upto 500k's worth of property, or
2) borrow 500k, and use my 500k to buy 1 million pounds worth of property ?
Obviously using the rental income would more than cover any interest on option 2, plus I don't need the income to live off as I've got a good income from my job.
Any thoughts / suggestions welcome ?
I've recently come in to some money and I'm going to invest this in buy to let properties (already have a few mortgage free properties)...let's say for arguments sake, I've got 500K
1) would you stay mortgage free and just buy upto 500k's worth of property, or
2) borrow 500k, and use my 500k to buy 1 million pounds worth of property ?
Obviously using the rental income would more than cover any interest on option 2, plus I don't need the income to live off as I've got a good income from my job.
Any thoughts / suggestions welcome ?
0
Comments
-
You need at least 25% deposit, so with 500k you could buy £2m worth of property. Well less than that since you'd need to pay for the purchase costs.
It all depends on the level of leverage, and thus risk, you are comfortable with.
Since you already have a mortgage-free portfolio, I think you should consider at least your option 2.0
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