10:02 AM, 12th November 2014, About 7 years ago 19
I’m a landlord because I doubt that a pension alone will feed me in my dotage…
Anyhow…I generally know what I want to do and how, but the next decisions I make could be critical and I feel that some wiser heads than mine could be very useful. I may need to review my strategy! Here’s my portfolio as it stands:
1) worth £365k, mortgage 22k
2) worth £160k, mortgage 76k
3) worth £255k, mortgage 56k
4) worth £190k, mortgage 127k
5)absolute turkey – negative equity 🙁
Apart from #5, the others all look hopeful; rising prices, in demand areas, regeneration, improved transport links and lots of goodies coming soon.
So good news is equity galore.
Being an earnest type I want to pay all these off as soon as possible so I can retire and live off the proceeds.
Before I do that I was thinking of borrowing back the £25k deposit I put into #2 to pay off property #1 completely, or to invest in equities or to save towards a bigger residential property.
The new EU laws coming about affordability tests make me wary about going on an equity spree in case I can’t remortgage in future if the powers that be decide I’ve bitten off more than I can chew or they regulate BTLs and we all have to get repayment mortgages etc etc so I’ve been focussing on the overpayment/repayment plan instead.
I’m not much of a risk taker, but something makes me think I might also be missing a trick. I could buy a ton more properties with my equity or use the money to invest in stocks or something else, but I had more properties and got rid of them as they were stressing me out and I realised I don’t want to own 100 properties after all. More hassle than it’s worth sometimes… I want a simple life, but to also live well. If I make some savvy choices now I feel I could be laughing…
Am I being an idiot?
Shall I play it safe and repay and leave it there?
Have I overlooked some brilliant options completely?
Thanks very much in advance.
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