Buy second property or rent for time being?

jamels2

I'm 37, single, work full time on average wage and living at parents. I own a buy to let on a 5 year fix with a long term tenant. That has 70k equity and since moving back I have saved another 40k. I am also owed over 100k ( no official agreements) being paid 1k a month to me. My objective now is to move out before I'm 40, sooner the better. I'm just unsure which of two ways to go.
1. Let to buy: View my buy to let as retirement income , let it pay for itself. Use 40k or more ( I am saving 3k a month) as a deposit on another property ( I can borrow another 150k on my income). Live in the new property. Once I'm happy in my own place then start paying off the mortgages .
2. Let to rent : Stick to owning just one property and aim to pay it off early . Let tenant stay as long as they want but in the meantime rent somewhere for myself for a similar price to the rent I receive. Pay off 10% mortgage a year and save the rest of the money or maybe invest in index funds. If/when tenant moves out then sell up and but somewhere to live myself.
Advice welcomed

Fire_Fox

Why wait until you are 40? What do you want from life aside from a comfortable retirement?

Go backpacking and surfing/ partner/ dog no kids/ kids no dog/ get your five minutes of fame/ write and publish a book/ complete the Marathon de Sable/ do a PhD or DPhil?

You are 37, dream a little, live a little.

hazyjo

This all sounds VERY familiar.

Looking at previous threads, it seems to be a question (or very similar ones) the OP asks on a fairly regular basis.

https://forums.moneysavingexpert.com/discussion/5856238/rent-or-buy

00ec25

jamels2 wrote: »

I'm 37, single, work full time on average wage and living at parents. I own a buy to let on a 5 year fix with a long term tenant. That has 70k equity and since moving back I have saved another 40k. I am also owed over 100k ( no official agreements) being paid 1k a month to me. My objective now is to move out before I'm 40, sooner the better. I'm just unsure which of two ways to go.
1. Let to buy: View my buy to let as retirement income , let it pay for itself. Use 40k or more ( I am saving 3k a month) as a deposit on another property ( I can borrow another 150k on my income). Live in the new property. Once I'm happy in my own place then start paying off the mortgages .
2. Let to rent : Stick to owning just one property and aim to pay it off early . Let tenant stay as long as they want but in the meantime rent somewhere for myself for a similar price to the rent I receive. Pay off 10% mortgage a year and save the rest of the money or maybe invest in index funds. If/when tenant moves out then sell up and but somewhere to live myself.
Advice welcomed

you should sense check your work of fiction before repeating it every few months
save 3k per month on average wages, so you save £500 pcm more than you earn...:rotfl:

as said many times before, posting history reveals all we need to know about your "story":

https://forums.moneysavingexpert.com/showpost.php?p=74407548&postcount=2