8:19 AM, 4th August 2014, About 7 years ago 7
Having embarked on property ventures last year after a health scare forced me to embrace self-employment, I certainly fall into the camp of novice investors. This site is a constant source of advice, inspiration (occasional entertainment, those jokes were good) and I have recently become an accredited landlord with a national association. It’s true: you are a friendly bunch, happy to help each other and I am pleased to have joined your ranks.
Investors – load your calculators – here is my question ….
Poring over hundreds of Property118 posts and having grown my own modest portfolio on gut feeling and good fortune I am now curious to know if I have exposed myself to too much risk, or whether I should be on the lookout for further investment. Mark Alexander – I suspect you will tell me gearing is too low! I retain a £10k contingency. All opinions/advice welcome, constructive criticism is fine and I look forward to receiving it. Figures are rounded for simplicity:
My own home is a large freehold detached period family house value £500k – finance: £200k – residential mortgage fixed until 2018 at 3%. Potential income: £1900
Two small one bedroom purpose built flats with adjacent garage, 999 year lease, well managed, value £150k – finance: £80k, BTL mortgage fixed until 2019 at 4%. Income: £600 pcm
The two properties above are in a desirable market town, both beside mainline station (50 mins from Central London) and in catchment for very oversubscribed state schools.
I also own 3 coastal properties. They are are large two bedroom purpose built split-level apartments with integral garage/driveway, well managed, also 999 year lease, value £200k – income: £800 pcm – finance: £100k BTL fixed until 2019 at 4%.
Fortunately my health has improved and I have now resumed my main career; the sort of profession that lenders love and includes verifying passport photos and so on. I mention here as it is not my aim to make property a full time pursuit, although I shall always source and manage tenants personally. Rather I hope that as soon as my own children have finished benefiting from those super state schools mentioned above I can let property my current home for another family’s enjoyment, scale down work commitments and relocate to the coastal property. However, always good practice to make the best use of one’s ‘gold’, and being in business can be quite enjoyable.
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