Would be interesting to see how the numbers stack up if the market goes south. So with leverage gains comes leveraged losses. I still think prices will rise. But nice to see the risk to the business model on high leveraged balance sheets
Thank you for this content. Could you explain a scenorio where the current residential property will be used to release equity to buy second home to live in and occupy, placing the first property on rent as the area attracts good rental income.
I’ve a 2 bedroom house bought for 159 k ….its now worth 200,000 K as of a valuation about two months ago ……………..I’d like to invest , am I in a good position
Would it be viable to only leverage capital if you can buy a property outright with the new mortage? I do want to start leveraging my capital when rates are low, but I don't want to be risking too much in LTV for my portfolio
You need to work out your tolerance for risk, also dont over leverage which is sounds like you wont. You can take out a decent chunk if what you buy you can add value and create extra equity.
Bought house in DE1 in 2006 155k, selling now for 185k. Good area as well. Then I also tried equity release on another property and was told that there was a clause in the mortgage that would not allow them to take into account new valuations? Does that mean you have to switch from resi to BTL in order to free up equity every time?
Please correct me if im wrong... So you can remortgage to release equity from your first property, and use the extra funds to take out a second mortgage to buy another property? The lenders dont consider the fact that you already took out one mortgage?
On the second property if its investment all they care about is does the investment stack up. Do you earn enough rent to cover the mortgage and make profit. Its much easier to get an investment mortgage than a residential mortgage.
@@propertyaccelerator So say there is £75k left in current residential mortgage, and one can remortgage £160k based on 4 times current salary , so that will leave £85k cash. Say after stamp duty and fees there is £65k left towards deposit (25 percent of property price), so one should be able to afford a buy-to-let foe £260k?
I have 2 buy to let’s fixed 2027/28 6% shall I take Early exit payments to refinance at lower rates and release equity ? Or wait till further rate reductions ?
I live in south, if I remortgage and borrow some money from my property my mortgage will increase dramatically, is it too risky ? say I managed monthly mortgage and buy a house with potential to do all renovations extentions and loft conversation but not going to rent it I wanna sell once finishes is it still BTL mortgage I need ?
If you take out money your mortgage payments will go up. But the rent from a buy to let should cover that for you. I would only do this if you fully understand how it works. We have made a course thats the cheapest around to help - property-accelerator.co.uk/fundamentals-of-property-investing/
I have a mortgage with a high street bank, as I live in Germany now they would not let me release any equity, I would need to remortgage but the deal I have is from 5 years ago so very low.
If you are renting the property you can move onto a buy to let mortgage to release equity. However as you said if you locked in a super low rate take that into account.
So lets say i take 50k on my 250k house. Can i pay the bank i took it from their money and no longer have anything to do with them after some time? I mean, I've watched a few videos but i still don't quite get that part clear enough.
I only recently found out that as long as you are using the equity for another purchase then you don’t pay the capital gains tax. The money stays with solicitors during the process and you never get it. I think that you are just kicking the can down the road until you do pay but not sure.
I know this works, it works for a lot of people. However, it does mean you're mortgaged to the tits. Non-paying tenants, losing your job etc. Could cost you this empire built on someone else's money. Wise move would to also ensure you have an adequate emergency fund sat to one side to cover these properties that you add to as you take on more risk.
@@propertyaccelerator was looking at this to but I've started watching Dave Ramsey and he doesn't like debt. I'm not sure how I'd get to where I want to be without leverage.
