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How to step on and walk the property ladder
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twyly75
Posts: 2 Newbie
here are my advice on how to DEAL with properties and go up the property ladder quickly based on my experience. Please let me know if you agree or have more to add.
1) as soon as you have a wage and a little saving, buy a property you can afford even if in a different part of the country! example: saving of 10k and a wage if £15k/year you can afford to buy a flat for £70k. Shop around for places in the north, which is a cheaper area, buy it and rent it out and put everything into the mortgage.... even if value might not go up too much, your pot/equity will grow.
2) Get a mortgage for at most 15 years: i never understood why people get long term mortgages... you just pay interests! the aim is to pay it off asap or you might as well pay rent. Very often the monthly difference is not much, but paying £40 less per month can mean prolonging your payments for years!
3) Make as much overpayments as you can: akas, do not keep savings in the bank while having a mortgage. Just keep a buffer of 3-5k for sudden things, but then save as much as you can and aim to reach that 10k overpayment limit! My mortgage at 13 years became a mortgage at 6 because for 3 years in a row i overpaid by 10k.
I have more but... what do you think?
1) as soon as you have a wage and a little saving, buy a property you can afford even if in a different part of the country! example: saving of 10k and a wage if £15k/year you can afford to buy a flat for £70k. Shop around for places in the north, which is a cheaper area, buy it and rent it out and put everything into the mortgage.... even if value might not go up too much, your pot/equity will grow.
2) Get a mortgage for at most 15 years: i never understood why people get long term mortgages... you just pay interests! the aim is to pay it off asap or you might as well pay rent. Very often the monthly difference is not much, but paying £40 less per month can mean prolonging your payments for years!
3) Make as much overpayments as you can: akas, do not keep savings in the bank while having a mortgage. Just keep a buffer of 3-5k for sudden things, but then save as much as you can and aim to reach that 10k overpayment limit! My mortgage at 13 years became a mortgage at 6 because for 3 years in a row i overpaid by 10k.
I have more but... what do you think?
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Comments
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I think your English could use some work. It almost sounds as if you are selling something.0
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I disagree with the first two.
1, buying a BTL can be a risky investment with lots of pitfalls and isnt for everyone. It also takes work, ts like running a small business. My brother does it and often says it isnt worth the hassle.
2, very few people can afford a 15 year mortgage and even those who comfortably can now would be better to take a longer term and overpay.
3, yes overpay as much as you can. But save aswell I would say more than 3 - 5k.0 -
BTL need 25/30% deposit and most lenders like you to own your own residential property.
You also face fees and survey, legals etc0 -
Clearly an idiot at large - who'd be better off practising their English than trying to give utterly ridiculous "advice" online...
Every point is laughable.....0 -
PasturesNew wrote: »Clearly an idiot at large - who'd be better off practising their English than trying to give utterly ridiculous "advice" online...
Every point is laughable.....
:doh: School's out. Slow today! Since when does one "walk" a ladder? Give me strength.0 -
Aaaand where do you live meanwhile?0
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Will you tell me the rest if I send you my bank details?An answer isn't spam just because you don't like it......0
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Astonishing how much worse their English is than it was in May.
https://forums.moneysavingexpert.com/discussion/5837025/smart-electric-heaters0
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