13:12 PM, 14th August 2018, About 4 years ago 11
I am now tentatively looking into making my next investment steps, never one to be happy just coasting, rather striving for the next rung. The backstory….
1. Husband and wife (early 40’s), both low rate tax payers but on the cusp of tipping over.
2. Main residence approx. £400k value with 50% LTV on tracker repayment mortgage
3. Looking to move to a approx. £600k house when one suitable becomes available
4. 3 x B.T.L. properties – all 4 bed family homes, 60-75% LTV. Very good long term tenants – gross rental income £2850 pcm, all 5-6% ROI. Interest only mortgages are long term fixed mortgages. Personally owned.
5. In the South East in an area that is high rental demand with very low availability.
1. Buy a fourth BTL house and manage tax in most efficient way –(preferred option if tax issues were put to one side).
2. Buy a BTL flat as a toe dip in smaller investment – (ROI doesn’t seem as good?)
3. Buy a house to renovate and sell on with a view to do more- (Concerned about likely return when SDLT for second home is calculated in to figures.)
4. Pay down residence tracker mortgage in readiness for the move.- (will make new mortgage easier to manage)
5. Pay down current B.T.L. mortgages – (S24 appears to have put to be the advantage of having a high LTV on a BTL.)
6. Do nothing – (sit and wait and perhaps use cash in bank as leverage on new residential mortgage or wait for S24 to be reversed (we can hope!))
7. Blow it on some crazy midlife crisis flippant purchase??