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Advice on whether to get a buy to let mortage
me107
Posts: 26 Forumite
I am intending on purchasing a buy to let property and would like to canvas opinion on whether i should buy this outright using cash, or whether i should put down a decent deposit (100k), and fund the rest using a mortgage. Property likely to be in the range of 250k-300k. I am in the fortunate position of currently being mortgage free and so i am a bit reluctant to take out another mortgage. On the other hand, provided i have no trouble securing tenants, the rent will comfortably cover the mortgage each month, and provided i don't run it to too many difficulties being a landlord (this would be my first venture into this), i would look to purchase another two BTLs, using the remaining 200k to fund the deposits.
I have sufficient cash reserves to fund the purchase outright and still have plenty of cash in reserve, so i could buy outright.
Genuinely torn on what is the best to do (i realise this is a nice dilemma to have). Would be interested to hear views on this, or if i have overlooked anything.
I have sufficient cash reserves to fund the purchase outright and still have plenty of cash in reserve, so i could buy outright.
Genuinely torn on what is the best to do (i realise this is a nice dilemma to have). Would be interested to hear views on this, or if i have overlooked anything.
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Comments
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You will find some answers here https://forums.moneysavingexpert.com/discussion/6197308/advice-sought-should-i-buy-a-buy-to-let-outright-or-with-a-mortgage#latest where OP asked the same question.2
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Offering cash quick sale may get you a good price. Then mortgage after 6 months0
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Have you made the most of your stocks & shares ISA allowance (£20k per year) yet?
Also, are you making the most of tax relief on pension contributions?
If not, it would make a lot more sense to do that, before considering a second BTL. Taking a mortgage if needed. More lucrative and a lot more tax efficient than a second BTL property.2 -
Will leaving the cash in taxable investments more than cover the taxed cost of the mortgage? If so, borrow. If not, it's cheaper not to. And we all know the answer, really...
Don't get hung up on "Oooh, mortgage!". It's leveraging a business venture. No more than that. How do the numbers work out?0 -
SDLT_Geek said:You will find some answers here https://forums.moneysavingexpert.com/discussion/6197308/advice-sought-should-i-buy-a-buy-to-let-outright-or-with-a-mortgage#latest where OP asked the same question.Hahahahaha!Well spotted SDLT!0
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