Help. Using home to fund a house purchase

getmore4less

Ok you have decided to sell but this struck me

billy2shots wrote: »

We have a Ltd company of 2 care homes and I manage 1 on a day to day basis. I'm used to landlord certificates, insurance, having people live in the places we own. I'm not sure I want the responsibility for yet another property and the maintenance involved.

If this business owns the homes you already have a substantial exposure to property did you really want more?

I would effectively need a £200k mortgage on property 1 valued at £325k and £250k mortgage on property 2 valued at £425k. With my income (and potential rent income from property 1, £1k a month before tax)

Gross yield of 3.7% not that good and once you account for the extra costs(and a new roof soon ish) getting any return is going to be a long time.


Might you be better off investing more into the business to scale up.

Hopefully that is giving better than 3.7% returns.

billy2shots

getmore4less wrote: »

Ok you have decided to sell but this struck me



If this business owns the homes you already have a substantial exposure to property did you really want more?



Gross yield of 3.7% not that good and once you account for the extra costs(and a new roof soon ish) getting any return is going to be a long time.


Might you be better off investing more into the business to scale up.

Hopefully that is giving better than 3.7% returns.

Thanks for taking the time to reply but things have changed. See post above yours for my latest query.