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Would you buy a buy to let with a mortgage? A wwyd thread!

(2 Posts)
Eachpeachpearwherestheplum Mon 17-Feb-14 20:18:31

Dh is a builder in his 30s with no pension. He is really talented and wants to do something to make more income and create a pension pot.
We are able to release equity from our own home and get another mortgage for up to around £250000.
We have see a house for £145000 that is in a very grim area but gains £765 per month in rent. Done up the estate agents think it would sell for £165000 max now.

Because of the area we would have to have it managed and after that cost and the cost of taking the equity out, we would be only gaining about £250 a month.

We could do the work in around a month and sell it straight away. But would only gain about 6k.

We could turn it into flats but every agent I speak to says they are not ideal conversions and hard to sell, but they are being marketed at 120k for down and 80k for up. But they are yet to sell!

We really want to use his skills and do something sad

Help any ideas!

OnePlanOnHouzz Mon 17-Feb-14 20:51:11

what about moving to a 'do er up er ' and living in it for a year or so - then sell and do another - might be a better way to increase your equity ?

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