Posted: Tue Mar 10, 2009 9:31 pm Post subject: Releasing Equity and buy to let
I am new to your site and three days into my research. I joined after hearing you on the radio a couple of weeks back. I found your views very interesting and it has fuelled my recent actions/feasibility study.
I have had my house valued at £500k (down about £1.5k in last 2 years or so) in S. Woodford e18.
I am on a corner plot and considering a number of things. one is to release equity and buy to let
Estate agents are not trustworthy in my situation as they, naturally, need to look after their own business and push what is on their books. I don’t want to buy and find I can’t rent it easily or, if all goes wrong, sell at a loss or no profit. Also I want to ensure I get a very good price that reflects the current market. I am not sure how long I have got before prices start to rise. Both the fin/advisor and Estate agent consider they have bottomed out and interest is increasing. They said that 25% deposits has slowed the 1st time market and that the banks will soon start mortgaging at 90% and prices will rapidly regain ground.
The mortgage advisor says that I should release equity on my house and but two buy to let flats for around £150-200k each.
A local letting bureau says they can always source tenants for 1-2 bed flats at around £700-900 a month.
I am feeling a bit panicky as I don’t really want to error on this and ruin what has taken 25 years to put together.
I was also told to keep away from new build as it is less known for long term growth potential and no history. The letting agent said similar, yet I know from your site there are some good deals .
I am not sure whether to look at other areas or stick around Woodford and Wanstead . 2012 Olympics may help prices??
Any view, guidance, window to act would be appreciated
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