AngelaG Posted March 18, 2020 Share Posted March 18, 2020 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. Quote Link to comment Share on other sites More sharing options...
AngelaG Posted March 24, 2020 Author Share Posted March 24, 2020 My topic just got approved so I am concerned it was missed. If anyone has any insight please share Quote Link to comment Share on other sites More sharing options...
stop_the_craziness Posted March 24, 2020 Share Posted March 24, 2020 I'm guessing you haven't read this forum much before you posted? Quote Link to comment Share on other sites More sharing options...
Huggy Posted March 24, 2020 Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
micawber Posted March 24, 2020 Share Posted March 24, 2020 Release the hounds! Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted March 24, 2020 Share Posted March 24, 2020 Awooga! Quote Link to comment Share on other sites More sharing options...
lombardo Posted March 24, 2020 Share Posted March 24, 2020 Angela, you may be a very nice person but this is not the right forum to ask the question. Go to mumsnet or moneysavingexpert.com and ask people. You will find like-minded people there. Quote Link to comment Share on other sites More sharing options...
Simhadri Posted March 24, 2020 Share Posted March 24, 2020 Your equity has self isolated itself from your mortgage. It'll take 6-8 months at least to get any meaningful equity release unless lockdown is lifted and virus spread has stopped. Quote Link to comment Share on other sites More sharing options...
Smiley George Posted March 24, 2020 Share Posted March 24, 2020 1 hour ago, lombardo said: Angela, you may be a very nice person but this is not the right forum to ask the question. Go to mumsnet or moneysavingexpert.com and ask people. You will find like-minded people there. Gotta be a wind up!! Quote Link to comment Share on other sites More sharing options...
Dorkins Posted March 24, 2020 Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 24, 2020 Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
AngelaG Posted March 24, 2020 Author Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 24, 2020 Share Posted March 24, 2020 Thousands have plenty of credit and access to copious amounts of debt....they still would not touch a BTL......is that telling you something? Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 24, 2020 Share Posted March 24, 2020 What's your leverage? Quote Link to comment Share on other sites More sharing options...
AngelaG Posted March 24, 2020 Author Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted March 24, 2020 Share Posted March 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
Will! Posted March 24, 2020 Share Posted March 24, 2020 It's all about the leverage. Quote Link to comment Share on other sites More sharing options...
Simhadri Posted March 24, 2020 Share Posted March 24, 2020 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. Me too. Quote Link to comment Share on other sites More sharing options...
Locke Posted March 24, 2020 Share Posted March 24, 2020 On 18/03/2020 at 15:13, AngelaG said: buy This word is seriously under abuse. You are leasing the houses from the bank. Quote Link to comment Share on other sites More sharing options...
LandOfConfusion Posted March 25, 2020 Share Posted March 25, 2020 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. Quote Link to comment Share on other sites More sharing options...
cbathpc Posted March 25, 2020 Share Posted March 25, 2020 Top trolling this one! Mortgage up to your eyeballs I say Quote Link to comment Share on other sites More sharing options...
stop_the_craziness Posted March 25, 2020 Share Posted March 25, 2020 Buy now! Buy everything! Innit. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 25, 2020 Share Posted March 25, 2020 Equidie! Properdie! Release! Release the hounds! I want mooooooar! Quote Link to comment Share on other sites More sharing options...
erat_forte Posted March 26, 2020 Share Posted March 26, 2020 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. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 26, 2020 Share Posted March 26, 2020 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. Quote Link to comment Share on other sites More sharing options...
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