100k What to do?

[Crimp]

Got a BTL property with 100k equity in it.
I'm a bit risk averse but is it worth taking out the equity and using it to get a couple more BTL's?
Quite interested in making the money work somewhere and is building up a portfolio worth it?

[LDN]

If you know exactly what to buy then may be worth it... but careful you don't buy a place that doesn't do much and ends up not going up in value; has happened to me! Massive waste of time and energy; having said that - it was one of a few; just be as sure as sure can be that the places you buy - put that money to work.

[jonah35]

Crimp said:

Got a BTL property with 100k equity in it.
I'm a bit risk averse but is it worth taking out the equity and using it to get a couple more BTL's?
Quite interested in making the money work somewhere and is building up a portfolio worth it?

That's not really risk averse especially if gearing.

[Frimley111R]

I am in the same boat but do the numbers still work if you buy more properties (presumably at higher cost now)?

[nikaiyo2]

Meh go for it, but I would say the opposite to one of the other posts. I look for BTL to be profitable from the rental income alone, capital growth if any is the icing on the cake.

[Timmy40]

Very similar situation, I'm being slightly different in that I've a bit more equity than that and I'm going to build a 5 bed house with it, I figure that will generate a very good return a lot quicker than the BTL will given prices have risen so strongly of late ( surely they must be topping out ).

[Crimp]

I'm figuring getting another 2 or 3 for now, maybe 80-90k properties, terraces and or apartments, quite achievable in certain areas and will hopefully bring in 500 each a month. Obviously got to take into consideration the BTL mortgages and tax on earnings but gotta be better than cash in the bank

[Frimley111R]

Crimp said:

.. but gotta be better than cash in the bank

Most things are as long as the risk is not high

[Russwhitehouse]

nikaiyo2 said:

Meh go for it, but I would say the opposite to one of the other posts. I look for BTL to be profitable from the rental income alone, capital growth if any is the icing on the cake.

This. I have three bought for cash. Two student renters and one to "young professionals". With another on the way. The student renters are good in terms of no council tax to pay and all the money up front which you retain regardless of whether the student decides to leave or not. The downside is they are students! Young pros look after the place better but there is more turnover of tenants as their job situation/ circumstances change. The rental income is the primary objective and has to be profitable, the long term capital gain is the bonus. Based on current showing I will be going down the BTL route from now on to expand the portfolio further. If you can manage the properties yourself so much the better although agents fees are all tax deductible. We have no choice at the moment as we are not in the UK and the properties are. You can't go wrong with bricks and mortar unless you really fk up. But tread carefully!