Hi,
I am considering buying a property simply because I currently have a large chunk of cash and it seems it may be safer and more productive in property than in a bank so this has lead me to ponder the question; Are there any general rules-of-thumb which one should follow to gain the most financial benefit when buying a property ? I am currently single and I may die that way or I may have many offspring in the future but there is no way of knowing so I want to look at this from a purely financial perspective. So, is there a generally accepted wisdom ? Should you stretch yourself to buy the most expensive property you can get a mortgage for or should you aim to have as small a mortgage as possible eg. use your cash to buy 90% of a one bed apartment or 33% of a 3 bed house ? Or indeed if your cash pile was large enough to buy something without a mortgage is this neccessarily inherently preferable than getting a mortgage ?
I'm thinking of factors such as:
- First-time buyer's grant
- Mortgage interest relief
- Tax relief on rental income (if I buy a 3 bed I would rent out rooms)
I realise some or indeed all of the above may no longer exist but this is the sort of factors I am interested in. Also, given such a broad question I accept that there may be no universally applicable rules-of-thumb but at a minimum I would like to know that I have considered all the relevant factors. So, can anyone suggest a list ? Are there any rules-of-thumb which apply to such a broad question ?
Thanks,
Mochac
I am considering buying a property simply because I currently have a large chunk of cash and it seems it may be safer and more productive in property than in a bank so this has lead me to ponder the question; Are there any general rules-of-thumb which one should follow to gain the most financial benefit when buying a property ? I am currently single and I may die that way or I may have many offspring in the future but there is no way of knowing so I want to look at this from a purely financial perspective. So, is there a generally accepted wisdom ? Should you stretch yourself to buy the most expensive property you can get a mortgage for or should you aim to have as small a mortgage as possible eg. use your cash to buy 90% of a one bed apartment or 33% of a 3 bed house ? Or indeed if your cash pile was large enough to buy something without a mortgage is this neccessarily inherently preferable than getting a mortgage ?
I'm thinking of factors such as:
- First-time buyer's grant
- Mortgage interest relief
- Tax relief on rental income (if I buy a 3 bed I would rent out rooms)
I realise some or indeed all of the above may no longer exist but this is the sort of factors I am interested in. Also, given such a broad question I accept that there may be no universally applicable rules-of-thumb but at a minimum I would like to know that I have considered all the relevant factors. So, can anyone suggest a list ? Are there any rules-of-thumb which apply to such a broad question ?
Thanks,
Mochac