One house or more, what would you do?

ellie27

I wouldnt dream of buying a property just to rent out until I was mortgage free on my own home.

System

Shares do best I think held for a long time, like property, held for the dividends, not short term capital gain. Don't try to time the market, pros will always beat you to it. Buy and hold, buy and hold

Ellie - although you'd be relying on employment income to get there, depending 100% on the fate of one company, therefore riskier than share income, and forgoing the ability to invest for years

System

The time period that slowpoke shows is too short to recover all losses but you can pretty much draw a straight line through it and upwards. Over the last century through all the crashes shares generally have still returned about 4000% I believe

Marvel1

Option 1 because I have no desire to be in the landlord business.

caprikid1

Are you sure that a 75% mortgage on a BTL will actually achieve a monthly income ? It rarely does.

chelseablue

If I had 100k I would either:


Pay the whole lot off my £228,000 mortgage


Or pay 50k off my mortgage and put the other 50k in my S&S ISA

Cakeguts

Can you afford to pay two mortgages? 25% equity in a rental property will mean that you won't make enough money to cover all of your costs. Remember you have to have spare cash for repairs to two properties.

hazyjo

theartfullodger wrote: »

Spend it on mistress/toy-boy (both?) , alcohol, fine dining

...and waste the rest


What sort of thing would either price give you? I'd not want to be a LL so that discounts that option for me. Also depends on your age and if you intend staying there or moving to something bigger. Buy too small and it won't appreciate as much in value so unless you're saving a lot, you might want to think about the future. I've always pretty much maxed out on mortgages, but am hoping to be mortgage free next year having built up a lot of equity.


Jx

teddysmum

I'd go for a property to live in. This gives you security and if prices go up or down , the relative cost of other properties in the area (should you want to move), will be more or less the same. (ie if your house loses value, other properties will also do this )


Some make a lot of money from being a landlord (but these are mainly the multiple owning 'professionals'), some just struggle to break even and some lose a lot.


You can see the latter on tv programmes and ,yes, they do choose sensational cases, but a lady local to us had two properties and because of bad payers and vandalism had to get out at a huge loss to herself.


Do you want all the responsibility and risk of being a landlord, as it isn't just a case of buying a property and collecting the rent ?

System

Funds expose you to less risk due to diversification than a small portfolio would, with none of the responsibility, and isa or pensionable