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Looking to take Equity out of a house but want to learn more.

londonsw6
londonsw6 Posts: 29 Forumite
in House buying, renting & selling
Our family has a house in Fulham, the house is worth about 2.2 million pounds,we have a morgage of about 250k pounds. We just Renovated it and rented it out for 1200 pounds a week. What we want to do is take cash out and buy other properties, 1 bedroom flats to maximize out rental yield. I just want to know whats the best way to do this, we're overseas landlords. I have my british passport we all lived in the house until 1990, then moved to california, any advice would be greatly appriciated.

Comments

  • anselld
    anselld Posts: 8,684 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    At that yield you will effectively be paying someone to live there.
    It would surely be better to sell and use the proceeds for other purchases.
  • londonsw6
    londonsw6 Posts: 29 Forumite
    Yeah, the rental yield isn't worth it, considering our morgage is 900 pounds a month and we have to pay 10 percent to the agent. Would you sell and buy flats with more rental yeilds.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Is £1200 a month the market rate for a property of that kind in Fulham? That seems pretty cheap to me.
  • Nebulous2
    Nebulous2 Posts: 5,754 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pixie5740 wrote: »
    Is £1200 a month the market rate for a property of that kind in Fulham? That seems pretty cheap to me.

    Pssst, its a week Pixie, a week.

    These Southerners have a quaint habit of avoiding pcm as it makes their rent look too expensive.
  • ellie27
    ellie27 Posts: 1,097 Forumite
    Ninth Anniversary 500 Posts Combo Breaker
    Pixie5740 wrote: »
    Is £1200 a month the market rate for a property of that kind in Fulham? That seems pretty cheap to me.

    £1200 a week, OP said!
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Thanks. That makes a lot more sense. This is what happen when I read things without my glasses on.
  • londonsw6
    londonsw6 Posts: 29 Forumite
    it's a week, just trying to maximize the investment, it's only getting 2 percent yield. We had a nightmere tenant, it took us a year to get him out, he was nigerian.
  • specialboy
    specialboy Posts: 1,436 Forumite
    Sell up and buy some flats in the Battersea power station development.
This discussion has been closed.
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