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Buying & Selling Property

S

Spursman

Neil Sullivan
Hi Guys,

ive got some money sitting in the bank doing nothing on a useless interest rate, its not a massive amount but id like to make it work better for me.

I have already go 2 properties, one that i live in and one that i rent, both have good equity. i have saved up again and want to buy another property as an investment. However when i bought my last house i had to put a large deposit down which i haven't got.

What is the best way to buy a property to rent out? I would like to put 15-20k down as a deposit. price range is 250-300k. My wages arent massive so based on the mortgage calculators i wont be able to borrow as much to be able to afford a 250-300k property.

Do i need to release equity on my current mortgage? not sure how it all works.

any property investors on here?
 
TBH 15-20k won't get you a great mortgage deal interest rate wise - around 90% LTV according to your figures.
Also they will question you on affordability issues and check these. Make sure outgoings are low
 
Buy to let mortgages are still unregulated (believe it or not) so personal affordability won't come into it. Affordability will be based around expected rental income and size of your deposit.
You will need a bigger deposit than what you have, (have to get at minimum to 80%LTV) it will also open up a much wider provider choice and therefore better deals.

You may be able to equity release on your current properties for that bigger deposit.

Keep an eye on fees though....booking fees, arrangement fees, all the solicitor costs are a bit of a puss take these days.

Look to buy in Tottenham....it's going places.
 
Tottenham is very over priced already. Seems like the only way is to release equity or keep saving up for longer.

Interest rates on savings are a joke
 
Haven't checked if prices have already gone through the roof but have you though about buying in surrounding areas of London with soon to be transport links? Or in London in areas like Thamesmead?

Also, it sounds like you're pretty good at saving, perhaps going in on a government led scheme like share to buy? Will give you increased expenditure and help you to purchase more of the property outright over the coming years? Caveat is I've heard mixed reviews, some o my mates that have used this option have done very well, others feel they've been ripped off.


Sitting on my porcelain throne using Fapatalk
 
Spursman said:
Tottenham is very over priced already. Seems like the only way is to release equity or keep saving up for longer.

Interest rates on savings are a joke
Click to expand...

But those pee poor savings interest rates are giving you the lowest borrowing rates in history.

You're doing the right thing, gearing your savings to increase your wealth.

(that is, as long as the bullsh!t house price gravy train keeps chugging)
 
ricky2tricky4city said:
But those pee poor savings interest rates are giving you the lowest borrowing rates in history.

You're doing the right thing, gearing your savings to increase your wealth.

(that is, as long as the bullsh!t house price gravy train keeps chugging)
Click to expand...

The are a lot of people saying the housing market is due a sharp correction.

With record level of debts in Asia and Europe being a basket case(not being political just talking about growth) I was looking at a different investment strategy.
 
Danishfurniturelover said:
The are a lot of people saying the housing market is due a sharp correction.

With record level of debts in Asia and Europe being a basket case(not being political just talking about growth) I was looking at a different investment strategy.
Click to expand...

It's tricky to know what to do at the moment. A strategy (of any kind) is difficult atm.

should have stayed in the Witts. It's like effing Sandbanks round here now.;)
 
Danishfurniturelover said:
The are a lot of people saying the housing market is due a sharp correction.

With record level of debts in Asia and Europe being a basket case(not being political just talking about growth) I was looking at a different investment strategy.
Click to expand...

Like What?
 
Spursman said:
Hi Guys,

ive got some money sitting in the bank doing nothing on a useless interest rate, its not a massive amount but id like to make it work better for me.

I have already go 2 properties, one that i live in and one that i rent, both have good equity. i have saved up again and want to buy another property as an investment. However when i bought my last house i had to put a large deposit down which i haven't got.

What is the best way to buy a property to rent out? I would like to put 15-20k down as a deposit. price range is 250-300k. My wages arent massive so based on the mortgage calculators i wont be able to borrow as much to be able to afford a 250-300k property.

Do i need to release equity on my current mortgage? not sure how it all works.

any property investors on here?
Click to expand...

I was looking up north for better returns and not as over inflated as the prices in the south east. Would be interested to hear peoples opinions
 
ricky2tricky4city said:
It's tricky to know what to do at the moment. A strategy (of any kind) is difficult atm.

should have stayed in the Witts. It's like effing Sandbanks round here now.;)
Click to expand...

It was time for a change and we moved closer to my sister her family and a couple of other relatives. I love Bramber, one of the pubs not so much. I have not done much kitesurfing since leaving but shoreham and lancing beach is 5 miles away and great for that. I prefer the area we are now and we are closer to the downs.
 
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