General (main property discussion here) - A little help?

For me the answer is simple: remortgage, then buy -rent out, buy -rent out again and then buy some more! A simple business model with remorg again after 6 - 12 months...

Regards, Malik

Hi James,

I am new to this forum so I hope you are all gentle with me! Having just read all the post. I have my own property mortgage free. I bought another a year ago and now I have taken out an advance baste on the increase value of this property @ 4.7% to gain fund to deposit on the next property. I didn't want to re-mortgage or look for a lender @ today’s rates as it would have been more expensive.

Now I have the deposit and found a property can anyone recommend a good lender? My current lender has no ties if I want to sell straight away @ a three-year fixed 4.7% taken out last year. Their interest rate has gone up to 5.2% or 5.5% but is there better out there?

I think it all depends how much capital you will free up by remortgaging (given rental coverage 125%), and how much you actually need.

I remortgaged recently at a rental coverage of 100% and a LTV of 60% freeing up a small sum (early 40s) to invest in 3 properties. Given the fact I work full time that was quite enough to be going on with!

My personal preference is not to sell (if at all possible). Once you have an asset let it sit there and bring in cash for you. Obviously, as you are talking about a property that is or was your Principle Property the tax breaks are also obvious, i.e. Taper Relief (max after 10 years), Personal Capital gains allowance 18k (each for you and your partner), and lettings relief (40k each for you and your partner) not to mention the fact you get full relief for a period of up to 3 years from having leased it out.

Hi David, I initially had a small deposit on the first property. I took a mortgage out on an interest only so the monthly re-payment to the lender would be low, leaving the rental income per month to cover the mortgage and any problems, which could occur, with the property and initial void periods when tenants leave.

I have not re-mortgage against my family home, the borrowing is totally independent in case there is a down turn in the market. Do you have a good buy 2let lender? Or anyone on the forum? I will provide my email address! If no one is willing to divulge on the forum.

Michael

Hi James,

I thought most good mortgage adviser didn't charge, their income is based on introduction or new business to the lender?

Well that's from someone whose adviser hasn't charged me for his services.

Michael

Hi James,

My advisers name is Jason Lloyd Mobile 07974 367451 or 0800 040 9025. If you say Michael recommended you he'll look after you. And it cost nothing!

Michael

James last year he was able to find a lender @ 4.7% three year fixed, which enabled me to take out an advance this year, based on a valuation survey of the property which had risen. He is a up front chap and you have nothing to loose as you are not paying £350 J

michael,

i think you have had some good tips but to be honest the property investment game can only been played within the parameters and objectives which you are comfortable with.

for example if you are uncomfortable with have a great deal of debt against your name then don't over stretch yourself. at the same time, when prices rise those that are the most highly leveraged will make the most money so don't be jealous that those with higher leverage make more money.

in terms of selling or holding property it is very much down to what you want to achieve. that said, given the aspirations that you seem to allude to perhaps holding property might make more sense. but really i can't judge.

tom

Tom,

Thanks for your views; as I read more about this game as you put it, I feel the rules ever expanding. The debt against my name is not a problem, we all have some form of debt, and I can always sell. As for making money we all strive to better ourselves in some way or another, jealously only comes to those who are insecure.

Now I'm trying to get my head round your last statement, "given the aspirations that you seem to allude to perhaps holding property might make more sense, but really I can't judge.

I think you have already judged given the aspirations that I seem to allude to.

Michael

when you said "...... think thats everyones aim. Its like one big game of monopoly" sounds like you would be more interested in holding for the longer term than flipping.

that said perhaps that was just a comment and not a reflection of your investment style/ risk profile.

tom

Hi Tom,

I don't play "MONOPOLY" try reading the post properly! JAMES on the other hand equates property investment to monopoly. Let's hope your not flipping! lol

Regards

Michael