Buy to Let, still worth doing ?
Discussion
Been pondering it for years and was never really in the position to do it but now my wife is working
and the kids are older have got to considering it again, my wife doesnt have a pension so was thinking this may be a better vehicle than a private pensions as we can take an income and then eventually transfer it to the kids.
We own our house outright so dont have a mortgage, nor any debt, we have some investments and a decent income, was thinking of starting off with a small property for around £100 - £120k, there are some good deals about in an area near us, plus they are putting in a new rail extension which makes the area more attractive for commuters into the city centre.
I get the impression that buy to let mortgages tend to make the whole thing not worth doing due to the interest being a lot higher, do we have to get a BTL mortgage ? we are a good bet for a lender for the reasons outlined above, we have perfect credit scores, equity, cash and income.
Theory is to pay for the house over the next twenty years whilst we are still working and potentially if able buy more.
and the kids are older have got to considering it again, my wife doesnt have a pension so was thinking this may be a better vehicle than a private pensions as we can take an income and then eventually transfer it to the kids.
We own our house outright so dont have a mortgage, nor any debt, we have some investments and a decent income, was thinking of starting off with a small property for around £100 - £120k, there are some good deals about in an area near us, plus they are putting in a new rail extension which makes the area more attractive for commuters into the city centre.
I get the impression that buy to let mortgages tend to make the whole thing not worth doing due to the interest being a lot higher, do we have to get a BTL mortgage ? we are a good bet for a lender for the reasons outlined above, we have perfect credit scores, equity, cash and income.
Theory is to pay for the house over the next twenty years whilst we are still working and potentially if able buy more.
I am thinking it is worth doing based on the comments, need to do my sums and ensure a decent contingency fund is in place, i.e. enough to pay the mortgage for a decent length of time just in case.
Potentially thinking of interest only and then if we have any windfalls/spare money paying off some of the capital, with the intention of it being paid for by the time we retire in 23 years (assuming we still can at 65).
Would be nice to have rental income split fifty fifty in retirement of a couple of grand a month and then be able to transfer ownership to the kids before we die but keep the income until we do.
Potentially thinking of interest only and then if we have any windfalls/spare money paying off some of the capital, with the intention of it being paid for by the time we retire in 23 years (assuming we still can at 65).
Would be nice to have rental income split fifty fifty in retirement of a couple of grand a month and then be able to transfer ownership to the kids before we die but keep the income until we do.
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