Leap of faith or road to disaster?Make Text Bigger
I’m teetering on the edge.
I have played it safe all my life and now want to do something for my son’s future. I have properties with no mortgage that I use for retirement income. Do I wait to save up the deposit for my next property which could take 3 years+ and houses will probably cost more by then, or do I take the leap, mortgage one of my existing ones now, and end up with up to 4 mortgaged properties instead while the market is slow and reduced income in the short term.
What is the sequence of events if you need to refurbish one before letting? This is what I have in mind:-
- Mortgage original house to 75%.
- Put 25% deposit on new house
- Get 75% mortgage on unrefurbished house
- Dip into the remaining money raised on the first house to refurbish it.
- Then pay to get bigger mortgage once it is refurbished.
- Then go onto next property?
Is that how it is done?
How do you all do it?
Paula – AKA “Felix Cited” (screen name on forums)
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