second mortage on second property

GEORGYPORGY

hello all,
i have a few questions that i would hope you very knowledgeable people could help me with.
my partner and i have just completed on our first house,we have just purchased an ex-council home and we beleive we got a very nice deal with a good discount enabling us to get onto the property ladder and several rungs from the bottom, we have both lived on the same home together for many many years and feel that it would be a suitable time to move forward, we live in the very south east of kent, it's a particularly busy area for university students and during the summer months no end of foreign students.
we would like to investigate the possibility of taking a modest chunk of the equity out of our recent buy, placing that reasonable chunk of equity into a good sized deposit on a new build, renting out the first property as a year round student or corporate let,thus, receiving enough income from the rent on the inital property to pay the mortage and a regular over payment, then buying the second home and living there as a move forward and upwards.
are we asking to much of ourselves?
what are the possible pitfalls that we could encounter?
are there tax implications?
should we consider new builds or older properties with a view to refurbishments?

any advise would be warmly welcomed.

WildHaggis

I'd be very wary about property investments right now. New homes are particulary at risk if there is a property price slump.

Your only real option at the moment would be a secured loan out of your existing property, to fund the deposit. many of the lenders will need you to be in your house for six months before they grant you a secured loan. It is unlikely you will be able to re-mortgage so soon after buying the house.

Take care, and do LOTS of research.

heavenly_heaven

i have a similar case like u. just remortgaged my current council flat to BTL taking 82K equity out of the flat. i now intend to pay just interest only on my council flat knowing fully well that the rent will cover the mortgage payment for interest only and the service charge.
i and my partner are about to complete on a new house using a chunk of the equity taken as a deposit also helping to reduce payment but this is a repayment mortgage. personally i feel secure knowing thatn the new house is a home and not merely an investment while the flat is an investment and based on the market we can decisions along the way. i hope that helps!