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  • Buy-to-Let

    Decisions! Help need to take next step ...



    Hi members!

    I’m 32 years old live in Essex and currently have 3 single btl’s on repayment mortgages. 

    All 3 are within 45 mins drive of myself. 

    I’m looking to refinance one of them and purchase another. Currently looking at houses in South Ockendon/Grays. 

    Can anyone suggest any other local areas with potentially good yields?

    Have also been told to look at going interest only as this is a quicker way to build up my portfolio? 

    Opinions please! 

    Thanks
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    I think everyone's circumstances are different so there is no right way to say what is good for one person will work for others. It depends on whether give precedence to cash flow above other things in your business plan.

    Also remember that by buying your 4th property you might be classed as a portfolio landlord depending on the lender, so the lending criteria might change. Some lenders may insist on you having 75% LTV across your property in which case your might strategically choose to keep some on Interest only and some of C&I or some combination of that or none. So if you don't have enough LTV already that you might need to continue building that first before buying your 4th property. 

    I don't know if that gives you the answer you were looking for but hope it helps. The best people are the mortgage brokers and tax advisors who can tell you what works for your individual circumstances
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 


    Hi Brad, welcome, and well done for what you have achieved so far. Smile

    It sounds like you have been building a portfolio without having all the insights you need to scale up?

    This can be easily remedied through education. Smile  Consuming the information on Property Tribes will dramatically help you raise your property game.

    The quickest way to grow a portfolio in the current market conditions (imho) is to buy something in need of refurbishment.  Buy at a deep a discount as possible, using bridging finance and your cash, then undertake the refurb asap, then re-finance on to a BTL mortgage at the end of the refurb, to re-cycle as much cash as possible.

    Rinse and repeat!

    If you know the area well, then it's probably lower risk to remain within the area you know.  Look for "cash buyer only" properties to take advantage of your position.

    The team at Property Tribes Financial Services on 01206 654444 can assist you in raising the most efficient and effective finance for what you are trying to achieve, starting with releasing equity. A specialist broker will help you raise your game and grow your business faster.

    With regards to interest-only, most landlords view this as the most efficient option over the long term, but a lot will depend on your personal circumstances and property goals, so that is something to address as well.

    There are pros and cons for both of course - and these are discussed here >>> Interest only vs. capital repayment BTL mortgage 

    I hope that helps for starters?

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    Thanks to you both for your replies. 
    Thanks Vanessa for the thread ‘interest only repayment’ some very good arguments for both ways. 
    Need to decide what is best for myself!
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    I'll give my twopenny worth: So who would I rather had my money?:


    1 - me, in my pocket

    2 - a bank,  who at the first sign of a down-turn will review lending

    The 2 reasons I favour the former is that I can make more money than I can save by paying down my mortgage & interest even post section 24 is tax deductable. By repaying you decrease profits over-time. It's also a risk-management strategy, to use to negotiate with the lender should they want more security if things go pear-shaped...

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