my husband and I have our own home for last 5 years. it is worth ~320k. we took out a mortgage for 20 yrs for sum 170k (original value 190k).
We plan to build a new home but will do it over a long period of time.we would like to keep a property as an investment.I think it would be wise for us to sell our current principle residence when our new house is ready to move into. This way we will avoid paying CGT on a large amount of profit (320-190 = 130k). This can then be pumped back into our new ppr.
In the meantime we have about 30k which we would like to invest and our SSIAS will mature in 2007(full amount for both of us).
We are thinking of investing in a property cost 200k. which if we got 80% mortgage we would use our 30k around about with stamp duty etc.
If we had an interest only mortgage we could earn ~750 per month on rent which would not be taxed. Our mortgage repayments each month would be ~950 over 25 years. So It would mean an extra investment of say 200-300 per month. We would look to holding onto this property for the long term.
Do you think this is a wise investment or would we be better off putting our money elsewhere.Maybe holding onto it to put into the new home we will be building in the next few years? Or am I totally off trach here?
I am unsure of how to calculate investment value.
We plan to build a new home but will do it over a long period of time.we would like to keep a property as an investment.I think it would be wise for us to sell our current principle residence when our new house is ready to move into. This way we will avoid paying CGT on a large amount of profit (320-190 = 130k). This can then be pumped back into our new ppr.
In the meantime we have about 30k which we would like to invest and our SSIAS will mature in 2007(full amount for both of us).
We are thinking of investing in a property cost 200k. which if we got 80% mortgage we would use our 30k around about with stamp duty etc.
If we had an interest only mortgage we could earn ~750 per month on rent which would not be taxed. Our mortgage repayments each month would be ~950 over 25 years. So It would mean an extra investment of say 200-300 per month. We would look to holding onto this property for the long term.
Do you think this is a wise investment or would we be better off putting our money elsewhere.Maybe holding onto it to put into the new home we will be building in the next few years? Or am I totally off trach here?
I am unsure of how to calculate investment value.