House Portfolio Strategy Question

markmetcam

Hi all,

*Background*

I'm slowly building a property portfolio with a view to gain some financial security and a passive income stream.

Currently I have one BTL property I own with no mortgage, bringing in 7% net return p/a.

I'm also currently exploring placing a 30% deposit on a second BTL property and am weighing the options avaialble via an ex-pat mortgage or the option of a peer to peer mortgage with my parents (I can pay them at higher interest than the bank, whilst paying less than bank mortgage rates). This is TBC.

Within 1-3 years I'll be moving back to the UK at which point I hope to have gained further savings to out towards our first home to live in.

*Query*

For my first home:

1)Would I be able to free up the equity in my BTL property, such as mortgaging 50% out?

2)For my first non-BTL property, i.e. my own home, would a standard mortgage then be avaialble to me?

3)Would any further fees/restrictions apply?

Finally, any general feedback on this strategy would be greatly appreciated. Your feedback will help me decide on whether to proceed with a second property or to sit tight.

Many thanks in advance!

Mark.

sparky130a

1} To what end?
2} Maybe, depends how long you've been back in the country.
3} Higher rate SDLT for a start...

You really need to consult a broker not the internet. Oh, and one property does not constitute a portfolio!

csgohan4

are you aware of the strategy the government has in place for BTL with the new Tax on income streams coming in soon?


Have you put this into consideration when calculating your capitol?

markmetcam

csgohan4 wrote: »

are you aware of the strategy the government has in place for BTL with the new Tax on income streams coming in soon?


Have you put this into consideration when calculating your capitol?

Hi csgohan - No I'll check that out - thanks for the advice.

markmetcam

sparky130a wrote: »

1} To what end?
2} Maybe, depends how long you've been back in the country.
3} Higher rate SDLT for a start...

You really need to consult a broker not the internet. Oh, and one property does not constitute a portfolio!

Hi sparky130a,

Thanks for the reply. My thinking was more to understand my options; if money would be locked up in the property or not.

Agree on the broker point, however out in HK there's limited help for people just learning the ropes on property over in the UK ...hence coming here.