Jump to content
House Price Crash Forum

Question to release equity


Recommended Posts

Hi, 

I decided to take equity out of a buy to let I own so that I could buy another property. I haven't finished the process but brokers still seem to be contacting me and want me to proceed. 

I do believe house prices are going to fall due to Coronavirus, is this still a good idea or should I put this on hold?

In my head the value of the property I would be taking the equity from will be negative but I am not planning to sell. I am planning to buy more properties so having cash and cheaper property works but I am concerned that I am being to simplistic. 

I would really appreciate your thoughts. 

Link to post
Share on other sites
On 18/03/2020 at 15:13, AngelaG said:

Hi, 

I decided to take equity out of a buy to let I own so that I could buy another property. I haven't finished the process but brokers still seem to be contacting me and want me to proceed. 

I do believe house prices are going to fall due to Coronavirus, is this still a good idea or should I put this on hold?

In my head the value of the property I would be taking the equity from will be negative but I am not planning to sell. I am planning to buy more properties so having cash and cheaper property works but I am concerned that I am being to simplistic. 

I would really appreciate your thoughts. 

I like that you use the word 'property' instead of 'home'. Much more professional that way.

Link to post
Share on other sites

Hi Angela, in addition to taking equity out of your existing buy to let you could also extract the equity from your main residence, this should enable you to buy several properties and increase your future income stream and capital gains. Best of luck and let us know how you get on.

Link to post
Share on other sites
5 minutes ago, Dorkins said:

Hi Angela, in addition to taking equity out of your existing buy to let you could also extract the equity from your main residence, this should enable you to buy several properties and increase your future income stream and capital gains. Best of luck and let us know how you get on.

Definitely the way to go. The small print doesn't matter that much as the govt usually has the small investor's back.

Link to post
Share on other sites

This forum has a lot of topics relating to opinions on house prices, buying property etc which are actually discussed, so I don't see why trying to get different opinions on equity is such an issue. This is the first time that I would be doing this, so I was really hoping I could get some help to decide whether I am literally choosing the worst time to do it. 

Anyways if possible please can admin delete this topic? I will just read the topics that everyone else posts instead of starting my own or replying to anything in the future.

 

Link to post
Share on other sites
11 minutes ago, Dorkins said:

Hi Angela, in addition to taking equity out of your existing buy to let you could also extract the equity from your main residence, this should enable you to buy several properties and increase your future income stream and capital gains. Best of luck and let us know how you get on.

Hi Dorkins, just one more property is all that I could manage if I am honest. I don't want to be completely reliant on tenants paying rent in order to make repayments.

Link to post
Share on other sites
1 hour ago, AngelaG said:

Hi Dorkins, just one more property is all that I could manage if I am honest. I don't want to be completely reliant on tenants paying rent in order to make repayments.

Hi Angela, makes sense, I also stopped at two buy to lets as I felt pricing two families out of homeownership was probably enough.

Link to post
Share on other sites
On 18/03/2020 at 15:13, AngelaG said:

I do believe house prices are going to fall due to Coronavirus, is this still a good idea or should I put this on hold?

The government is now going nearly full whack on tacking on debt, so from that perspective they're going to need to engineer inflation which in turn will devalue the real value of everyone's debts, including yours.

They've had a few goes at this already (see house prices going up over the last few months) but with all this mass spending things are now going to get really serious. So it's either force inflation higher and make current debts worth less (worthless?) in real terms or allow the state go bankrupt. I'll let you decide which of those is the most likely outcome.

Link to post
Share on other sites

Hi Angela, welcome to HPC. Please ignore all those nasty people above, they are just trying to be mean.

I have a question for you though, which might help you understand your decision.

What are you offering potential tenants, to make this house that you are borrowing money to buy, worth them renting? What sets this house that you hope to acquire apart from other houses for rent or for sale? i.e. what is your business plan, what is your unique selling point, how are you planning to ensure that your house is let when many others are not?

Or are you just planning to try and corner the market and force people looking for a home into having to rent from you because you have bought places from under them giving them no option? I hope its not that because that would be very mean and unethical.

Link to post
Share on other sites
9 minutes ago, erat_forte said:

Hi Angela, welcome to HPC. Please ignore all those nasty people above, they are just trying to be mean.

I have a question for you though, which might help you understand your decision.

What are you offering potential tenants, to make this house that you are borrowing money to buy, worth them renting? What sets this house that you hope to acquire apart from other houses for rent or for sale? i.e. what is your business plan, what is your unique selling point, how are you planning to ensure that your house is let when many others are not?

Or are you just planning to try and corner the market and force people looking for a home into having to rent from you because you have bought places from under them giving them no option? I hope its not that because that would be very mean and unethical.

I suspect it has nothing to do with considered details and everything to do with dinner party conversations and status symbols.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.