Hi there,
I would really appreciate it if people could offer their opinions on the following situation. Is it wise or sheer madness?
Currently we have a mortgage of €230k on a property worth €400k.
A potential buy to let property is selling about €320k.
I want to borrow €350k (to cover stamp duty and initial outlays).
This will be financed by 92% investment loan and remainder by remortgaging current house.
It will end up giving a combined LTV of about 80%
Monthly income / rent will be about €850 and interest only repayments will be about €1150
This shortfall can be met from normal income of else from a small lump sum drip feeding into the mortgage repayments each month.
Similiar properties have appreciated by at least €25k pa in the area over the last while.
I am a pretty much risk adverse person but view this as a potential good investment. Does anybody have anything to offer on this?
All the best,
Centless
I would really appreciate it if people could offer their opinions on the following situation. Is it wise or sheer madness?
Currently we have a mortgage of €230k on a property worth €400k.
A potential buy to let property is selling about €320k.
I want to borrow €350k (to cover stamp duty and initial outlays).
This will be financed by 92% investment loan and remainder by remortgaging current house.
It will end up giving a combined LTV of about 80%
Monthly income / rent will be about €850 and interest only repayments will be about €1150
This shortfall can be met from normal income of else from a small lump sum drip feeding into the mortgage repayments each month.
Similiar properties have appreciated by at least €25k pa in the area over the last while.
I am a pretty much risk adverse person but view this as a potential good investment. Does anybody have anything to offer on this?
All the best,
Centless