V
virtualtechie
New Member
Approx. 80K deposit
INTENTIONS – invest money so don’t blow off , have more space to live for 3 years.
OPTION 1 – buy a house approx. 350K for 3 years, which gives extra space but is not in the best area This area will not be the one we want to settle in, live the house we want approx. 450-500K.
Save more deposit + let’s say house price goes up every year by 5% so 15% appreciation i.e. 50K value increased + 80K already in equity + 60K saved = 190K deposit for next house
190 K total – 60 K saved again = 130 K
Benefits – had more space to live in for 3 years , gained 15% of property price
Disadvantages – not in the best area, will have to move house again, a bit further away from station (5-10min) not a massive concern,
OPTION 2 – buy 2 buy-to-lets with approx. 40K deposit each and 120K buying price for each property
After 3 years – 80K (2 houses) equity + 18K gain @ 15% (3 years) X 2 houses + 11K x 2 houses (rent / profit @ 300 month each) = 138K deposit
Advantages – money saved, living in the same area, will only have to move house once only, close to the station.
Disadvantages – less space for 3 more years
OPTION3 – Do Nothing.
INTENTIONS – invest money so don’t blow off , have more space to live for 3 years.
OPTION 1 – buy a house approx. 350K for 3 years, which gives extra space but is not in the best area This area will not be the one we want to settle in, live the house we want approx. 450-500K.
Save more deposit + let’s say house price goes up every year by 5% so 15% appreciation i.e. 50K value increased + 80K already in equity + 60K saved = 190K deposit for next house
190 K total – 60 K saved again = 130 K
Benefits – had more space to live in for 3 years , gained 15% of property price
Disadvantages – not in the best area, will have to move house again, a bit further away from station (5-10min) not a massive concern,
OPTION 2 – buy 2 buy-to-lets with approx. 40K deposit each and 120K buying price for each property
After 3 years – 80K (2 houses) equity + 18K gain @ 15% (3 years) X 2 houses + 11K x 2 houses (rent / profit @ 300 month each) = 138K deposit
Advantages – money saved, living in the same area, will only have to move house once only, close to the station.
Disadvantages – less space for 3 more years
OPTION3 – Do Nothing.