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Equity release
Comments
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There are different types of equity release loans. You are presumably looking at one where you have to pay the interest each month?MarkStbarbe said:Was looking at around 6% would be able to borrow £200,000 and with savings buy another property for approximately £300,000. I know that I would probably owe them my original property. But I would still have the rental property to leave to my children .At 6% on £200k loan, you would be paying £1000 a month in interest. Would the rent on the £300k house be enough to cover that? There are a lot of costs involved in being a landlord, and you would have to cover those out of the rent, too.What would you do if the tenant defaults on the rent and/or trashes the property?No reliance should be placed on the above! Absolutely none, do you hear?0 -
OK thanks, will have to get advise off Financial Advisor0
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I recommend my financial advisor, he has helped me since my husband died in 2016. Private message me if you'd like his address, he is based in Norfolk but travels all over the country.£216 saved 24 October 20142
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The good thing is you have expressed your opinions here and now have a plan to seek financial advice👍3
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Would most IFAs be qualified to advise on BTL?MultiFuelBurner said:The good thing is you have expressed your opinions here and now have a plan to seek financial advice👍No reliance should be placed on the above! Absolutely none, do you hear?1 -
I didn't state who to go to for financial advice there are many specialist BLT firms and experts out there. Are we supposed to promote individuals that we have used for our own property portfolio and interests on the forum I don't know the rules on that?GDB2222 said:
Would most IFAs be qualified to advise on BTL?MultiFuelBurner said:The good thing is you have expressed your opinions here and now have a plan to seek financial advice👍0 -
I am just not sure why you want to do this? You lose your original property but gain a BTL to leave to your family?
Are you hoping to make an income from BTL is that why?0 -
No, I don’t suppose we are. I was just pointing out that the OP needs specialist advice that some (most?) IFAs could not provide, so he needs to choose carefully.MultiFuelBurner said:
I didn't state who to go to for financial advice there are many specialist BLT firms and experts out there. Are we supposed to promote individuals that we have used for our own property portfolio and interests on the forum I don't know the rules on that?GDB2222 said:
Would most IFAs be qualified to advise on BTL?MultiFuelBurner said:The good thing is you have expressed your opinions here and now have a plan to seek financial advice👍Many IFAs will just guide in the direction of collective investments for the £100k savings the OP has, which might not be at all a bad idea, but isn’t what he is looking for at the moment.No reliance should be placed on the above! Absolutely none, do you hear?0 -
What makes you think you'll make money renting it out??MarkStbarbe said:Hi,
Would someone be able to advise me, we are thinking of taking equity out of our house to buy another property to rent out, any advise if this would be possible would be helpful.
Thanks
Can you afford to take BIG financial risks??
Do you have the financial AND emotional reserves to cope with the tenant=from-hell (or agent-from-hell) who doesn't pay you for 7 months whilst you keep paying mortgages/legal fees & repair bills etc etc .. Repair bills you ask?? If you want judge to sympathise with tenant don't do repairs and you'll be in an even bigger hole full of mines...0 -
Very high risk idea.
Example: You get a great rate on the equity release, buy the perfect BTL and find a kindly, professional couple to rent it. Two months in their relationship breaks down and neither want to pay the rent, one moves out and the other cannot afford to pay you. Despite your best efforts the remaining occupant refuses to pay anything for the remainder of the term and your local courts are backlogged and it takes 18 months to get your property back. Both halves of the couple have no meaningful assets anymore and your outstanding rent and court fees are paid off at a rate of £5 a month. When you get access to the property you find ££££££ damage has been done and you can either fix it and try renting again or sell at an vast loss.
Net result: Financial loss, huge stress leading to earlier demise due to the toll on your health.
Of course it may work out for you - but wouldn't be easier to bet on Red Rum in the 4:15 ?0
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