Good deliemma to have

capstain411

All those 7 day a week slog paid off. Sold business. Net saving after tax £119k.

Current mortgage 92k. Property value : £260k. Current rate 2.99% fixed till Nov 19.

Currently employed combined with wife savings of £2k per month,if mortgage paid off.

Market conditions horrible so will not invest in another business.

Shall I clear mortgage with ERC of £2700 or buy 2nd 1 bed house in outstanding school catchment on cash.

We both are 35 with two children.

2nd property will not be sold for atleast next 10 yrs.

Could I please mention, we are in this position courtsey of great guidance and advice from this website as well as amazing support and partnership by my wife in saving every single penny. It is hard but doable.

ACG

Are you aware of the upcoming tax hanges on BTL properties?

You should probably speak to an accountant to discuss the figures.

getmore4less

1bed school catchment!

Who are the target for this property?

capstain411

My kids really. None of schools in my area are good. Even if I keep property empty, will be cheaper then private education for two and hoping property price will grow cumulative by atleast 4-5% in next 10 years. Definitely realistic.

I love my existing property. One thing for sure. Will never move. This house is like our first child,renovated from scratch. Everything perfect except schools.

NYM

Not many families would be interested in a one-bed property no matter how good the local school is

_CC_

Why limit the investment choices to property?

capstain411

Thanks CC. What you'd be your options.

ACG

stocks, shares, classic cars, gold. Or one of those peer to peer business investment sites.

Jenniefour

ACG wrote: »

Are you aware of the upcoming tax hanges on BTL properties?

You should probably speak to an accountant to discuss the figures.

Agree - and there were 3 or 4 pages in yesterdays Guardian about the possible impact of all the new BTL tax and stamp duty changes on investors, the rental market and the housing market. Consensus seems to be that the small investors e.g. one or two properties, could find themselves in difficulties and seriously subsidising their small BTL portfolio's. It seems some BTL investors are now selling up. Well worth a read.

Keep_pedalling

capstain411 wrote: »

My kids really. None of schools in my area are good. Even if I keep property empty, will be cheaper then private education for two and hoping property price will grow cumulative by atleast 4-5% in next 10 years. Definitely realistic.

I love my existing property. One thing for sure. Will never move. This house is like our first child,renovated from scratch. Everything perfect except schools.

So are you saying you are going to fraudulently claim this as your residence, when applying for school places for your children?

getmore4less

capstain411 wrote: »

My kids really. None of schools in my area are good. Even if I keep property empty, will be cheaper then private education for two and hoping property price will grow cumulative by atleast 4-5% in next 10 years. Definitely realistic.

I love my existing property. One thing for sure. Will never move. This house is like our first child,renovated from scratch. Everything perfect except schools.

Some schools are wise to that scam and some areas you will get outed by true locals.