Pay off House or Buy to Let

kittenkicks

Hi folks, wonder if you might be able to help me.

I'm 31, engaged and into the second year of the mortgage on our first property ( 153k)
We've been overpaying and have got our LTV down to 73%

I work in the arts and earn £23k a year, my partner earns closer to 40 pre tax.
Although I've never earned much, I've been a saver since I was young and now I have stored away around £55k. It's split between S&S ISA, other ISA's and savings accounts.

We're keen to pay out mortgage off within 15 years or so and we want to try to start a family soon.
I've always been fascinated by property and I live in the North West where renting yields can be high and property relatively cheap.

I was just after opinions on whether I should invest some of my savings into a small buy to let property. Would this be a wise move? Or should I just concentrate on over paying our current mortgage.

I would of course keep a 6 month rainy day fund and a fund for planned maternity leave. I would potentially like to go part time after having a child and thinking maybe a rental property could be a good move.

My mother has recently retired with a little pay out which she is keen to invest in some way too. Would it be wiser for us to maybe come together to purchase a small buy to let ( I'm talking a 55-80k flat in a decent area)

OR am I just getting in way above my head? Any thoughts appreciated.

beanielou

I think it all comes down to what you are comfortable with.
Sounds quite a good idea if property prices are low & rent yeilds are good.
Also if you do it with your mum there is less risk

kittenkicks

Thanks so much for replying, really appreciate it. Think it's just a big leap but with the right advice maybe we could make it work.
Thanks again x

BookmobileBadGirl

My opinion would be;

- NEVER go into something like this with family, I know you think you wouldn't fall out but you would.

- Where do you live in relation to the North West/the intended rental property? would you be having to pay for a management company or be willing to be bother at all hours over a leak

- once you have a child, you will not want to be stressing about a rental property

I would just focus on your mortgage and keep stress to a minimum

kittenkicks

Thanks so much for all this great input, don't really have anyone in my circle to talk to about these kind of things so your experience and advice is greatly appreciated

BookmobileBadGirl wrote: »

My opinion would be;

- Where do you live in relation to the North West/the intended rental property? would you be having to pay for a management company or be willing to be bother at all hours over a leak

I would be living close by and managing it myself if I did go through with it- though I am started to have reservations now!