Can I buy a second House

May I buy a second house?

We did it, but only to complete our moving chain. To help you, you need a cushion of money that you can buy. Shall we buy a second house for rent? No.

I would like some advices please... we own a house worth £450,000 and have a £130,000 mortgages. Now we are considering the acquisition of a second real estate for about 170,000 pounds, which we are renting out for investment use. How much rental can you count on on the land? 5 percent of the sale value is quite good these times, but not much of a yield.

Keep in mind that as a lessor you have to bear all expenses for servicing - where would the funds come from? Could the real estate be "ready for rent" or would you have to re-decorate, upgrade or renovate it? â We currently have practically no cost reductions and therefore no pillow if something goes sour.

This is a very difficult situation even without the cost of a lessor. Are you sure that with increasing energy prices and the prospect of higher mortgages being repaid, you can now do without a second one? Possibly - at least I think you are not prepared to face the unexpected of a lifetime and your main concern should be to have enough money to cover all your expenses for 3-6 month if you have no earnings.

When real estate values rise in the long run (10 years and older), you make a decent gain over the sale value. However, before that, you have all the maintenance expenses for a second real estate. You have to keep "gaps" (times when you don't have tenants), poor renters who make a walker or damaged the property/furniture/equipment... and you have to recall the pure grief of having to keep all the pertinent notes so you can file your IRS.

IMHO, invest in real estate is quite a full time job.

Purchase of a second house and rental of the first house

As there are hardly any other 4 berths in the area, we chose to rent them out to buy them. £100k interest is charged, which is only allowed to buy a mortage (£120 per month) to make the security for our new buy. As we have opted to take a 2-year fixed-rate mortgages so we can repeat and sale things in 2 years if we want as we would get the higher Stamp Tax back at this point.

Obviously there are operating expenses, managerial expenses that need to be deducted, but we feel that the figures work for us and we already have rental expertise. And we already know the house, we know what we have done with it (many) and we know what work is likely to be done in the next few years, so we can make a corresponding budgeting.

But I' m not sure whether the forecasted rentals revenues were contained in it or not as revenue for us. I would definitely suggest chatting with a brokers to find out the possibilities.

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