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tweedlover

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About tweedlover

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  1. OK, I guess I was hoping for some analysis of whenhow best to structure including things like mortgage insurance to try to hedge the risk of a dip in the market... To get some conservative advice... Assuming lots of you also thinking about buying in this overheated market. But I get the sense this is pretty emotional for a lot of you so I'll stop bothering you!
  2. Thanks for the constructive response count (!) Guess that really depends on what happens to rental prices as Will already highlighted and how likely that scenario is, but serve me right for not reading the name of the forum and expecting balanced analysis do you think rent prices would fall as far as buy prices ? When is the crash going to happen btw? Let's face it, most people with a mortgage will be in trouble if that happened, but you are right, btl-ers would be in more trouble. How much of a margin would you set aside ?
  3. Thanks for the reply Will, I hoped like the 700pm buffer was a reasonable way to hedge against interest rate moves for the mortgage. Do you think that is enough? Also, I pay more tax than the interest on the remortgage so wouldn't be affected by moves on that one. Rental prices - zoopla tells me that 1400 is in the middle of the range I could expect, and I'm assuming that estate agent rental fees can be claimed against tax (can anyone confirm or deny this ) but you're right I shouldn't assume full utilisation, and I may not be able to achieve that rate which could put pressure on. Is there a rule of thumb on this ? I work as a civil servant on the top rung below senior civil service, currently earn 55k, paying about 12k tax with around 70k in savings / investments. This plan does feel like it pushes quite hard, but the place I'm currently living just feels wrong now I'm single, and I'm really motivated to use a new central place as a sort of new lease of life (excuse the pun;)
  4. Hi there, I own a 2bed house in East London worth 320k now which I'm lucky enough to have paid off, and unfortunately recently become single so would like to move more centrally closer to my work in Westminster, ideally cycling distance. THE PLAN I can scrape together around 100k deposit if I save hard this year, and think I can get 200k remortgage on current property (which I would then rent and write off interest against tax). So I'd pay around 800 pm for 20 years on this remortgage (including tax write off, assuming I can include agent charges in tax write off too). I think I could then get a 300k mortgage on a central property, which would cost c. 1400 pm and which I could finance through rent on my current property. This leaves me with a bill of 800pm on a new property worth c 600k, the old property still mine, and not too much risk I think. (might not be able to let old priory consistently so need a buffer but I can save c 1500 pm ok so would have 700pm buffer fund, could also buy mortgage insurance in case of losing my job) My questions --Do you see any big issues for my plan? --Could you recommend any good advisors to discuss with? --Have you any recommendations for good areas to buy around the 600k mark? (I like Kennington, elephant, Vauxhall, Angel, Pimlico, would like a nice view, trendy feel and easy to go out from.) Thanks for reading and really appreciate any help! TL;DR I'm looking to buy relatively centrally at 600k. Any recommendations for areas and can you sense check my plan?
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