Property investment advise needed BTL

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AndyP

New Member
Hello

Looking for some help on investment in property. normally I’m pretty good at decision making but definitely hit a wall lately as I don’t want to make a big mistake !

To set the scene:-

I have a 450 k house with no mortgage

3 x buy to let’s all with a mortgage and 30% deposit all producing income and capital increased by about 20% and worth around 100-120 k each .

i have around 150k in Cash to invest / currently work and am 40 so have a good 15-20 before retirement !

my question is I’ve always liked property but don’t work in it for a main job I’d like to create a secondary income stream to either supplement my job for retirement or to replace it(property restoration) but what option is best from the below or any other suggestions ? I’m slightly concerned by new tax laws clamping down on small buy to let landlords in resi.

1. invest my cash in more buy to let’s - residential and just keep buying more till you get a satisfactory retirement income ( at least 3k per month)

2. move into small commercial properties as the tenant manages the property more and tends to stay for 3-5 years On a lease so slightly less management

3. move everything into property flipping buying Property around. 250k funded by cash and gradually selling my resi Btl properties . Any advice on restoration loans / mortgages ?

4. borrow money against my main property to buy new residential or commercial let’s , and the cash I have to generate income outstripping the new mortgage - lets say I borrow at least 250k against the original 450k

5. Get fed up trying to make the correct decision and have a mid life crisis and buy a sports car !!!

any help or ideas would be helpful even If you did something different in a similar situation
 
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Luke1990

New Member
For what its worth if i was in your position I’d be inclined to use the 150k cash to buy house’s to refurb, let them out & refinance (hopefuly get all or certainly most of your money back out) & move on to the next one. Wouldn’t take you long to build up the £3k monthly passive income. Option 5 sounds good also
 
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Longterminvestor

Administrator
Hi @AndyP

You are in a fairly strong position with equity, cash, properties, etc. A few pointers:-

- If you are looking at BTL as your future and expanding your portfolio, have you considered using a limited company for tax benefits?

- I would look to expand you BTL investments which will increase your rental income.

- It would be sensible to release some equity from your current house, and use this together with additional available cash to really push ahead with your portfolio. I always say dont be afraid of debt, respect it , yes, but use all of your existing assets without over stretching your finances. Especially with interest rates so low.

- Commercial property - this would depend on what type of property. For example the high street is dead.

- There is probably enough scope to both increase your BTL portfolio and introduce an element of flipping within your current finances (releasing equity from your home).
 
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AndyP

New Member
Thanks for both of those I threw commercial in there because I was potentially thinking of a less hands on approach compared to my experience in residential but do you think that is the case ?
if I targeted street favourites beauty salons and a3 food joints rather than office or retail ?

my only other option would be to upgrade our residence and move into the 600-800k property area do it up and hope it’s worth circa 800-1mil in 5-10 yrs meaning we could downsize with a good pot behind us .
any further thoughts

I feel like I’m in the very confusing middle ground we’re certainly not wealthy but we have assets to leverage and its hard to make a choice when you don’t have millions to compensate for poor choices !
 
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