rent or buy second property?

Pixie5740

Neither. I think you should remain living with your parents until you're capable of making decisions on your own. Fair enough to ask for advice on a forum when you get stuck but when you ask the same thing a dozen times and still can't decide it just shows you're not ready to leave home.

jamels2

yes but there have been changes in second property stamp duty and tax so the answers now could be different to a year ago.

H_C_2

Hi all


I would be very grateful for ANY advice or help? The situation is :


*Put offer in on house for £335,000 - offer accepted house taken off market ready for us to complete.( Been accepted on mortgage of 270,000.)


*Our house up for sale for £240,000- we have just swapped agents after a month of chaos from other agents. We are now with TWO agents on a fixed fee basis.( about £135,000 left on mortgage.)


*Can we release equity form our existing home ( home up for sale?) to buy new home? - we can then release £88,000 for our deposit and rent our home out.


I have never sold or bought a home in 15 years so really need help with this been to a financial adviser but they just want sell me products?


Many thanks for taking your time to help me

Cakeguts

What I think you are asking is can your remortgage your existing home for the extra £88,000 on a buy to let mortgage and then rent it out? How do you think you are going to pay two mortgages?

If you can't sell your existing home then the price is wrong.

Start again. What are the recent selling prices of houses similar to yours in the same area. You can find out by looking on Zoopla and Rightmove. Take no notice of the estimates of prices they are usually wrong just look for actual selling prices. These will tell you how much your house will sell for. Estate agents don't actually know what your present house is worth until someone pays for it so the selling price they have given you is an estimate not an exact amount. When you have worked out what you are actually likely to achieve then you can either market the house at that level or just above it to get offers at that price. If you price that your house is being marketed at is very different to what you have researches about actual selling prices you won't get any offers. So it is a good idea to do your own research.

jamels2

if i were to rent i would divide my income so my wages covered all my living costs and all other income from rent and money owed to me would go to the mortgage.
that means i can pay £1750 a month to the mortgage and clear it in 2 years.
then i could save for extending the lease.
how do you think doing that compares with buying? i feel it could be safer as i wont be worried about interest rate and pay no mortgage fees or stamp duty?