Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Advice

4 replies

stayhomemum · 09/02/2008 19:44

Due to Mums death, we now have enough money to pay the mortgage off on the house- 43,000 which then leaves 15,000.
We have been thinking for a while about investing in property in Turkey, to rent out for the time being, until we decide what we want to do in the long run. His parents have offered to help out, and with savings over there, all money available adds upto 100,000.

This is where it gets complicated. Do we pay off the mortgage here, and buy property in Istanbul and rent out, or do we reduce our mortgage to 5 years, pay that with DHs wage, and use the money available to buy two properties, and therefore get two lots of rent in return. The rent from two properties would work out around 1000 a month, and that would be saved up in the bank over there.

If we reduce the mortgage to five years, we'd be paying 811.00 a month, yet if we paid off the mortgage and took out a long for the same amount to put towards the properties, we'd be paying back 740.00 a month over 5 years.

DH has fried my brain with this, so I told him Id think about it whilst he was at work. I cant even finish writing this without my brain hurting! Does anybody have any suggestions as to what we should do for the best?

OP posts:
lalalonglegs · 09/02/2008 20:56

Are either of you Turkish? Do you know the market in Turkey well? Do you speak Turkish? Who do you envisage renting to? Have you got a support system out there who can keep an eye on the property and let you know if your tenants are looking after it?

If the answers to more than of the above is no, then I would make life simple and pay off your UK mortgage.

lalalonglegs · 09/02/2008 20:57

more than one of the above

stayhomemum · 10/02/2008 09:20

DH is Turkish, and I have dual nationality (British & Turkish).
His parents will be ensuring the upkeep of the properties and of course making sure rent is paid.
They have four properties themselves and know the market considerably well.

OP posts:
lalalonglegs · 10/02/2008 10:26

Well, £740 is less than £811 so why not do it that way and save £71 a month? Seems a bit of a no-brainer. Always better to be mortgage free on your own property and load loans onto your investments - makes them more tax efficient.

New posts on this thread. Refresh page