Baby boomer
Registered User
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- 735
With respect I suggest that those who are advocating that Cremeegg should diversify are missing the point. If the entire property portfolio was owned outright, that would be absolutely the correct strategy. But it isn't. BTL 1 and 5 are owned outright and there's a reasonable argument to sell and possibly switch into a diversified equity portfolio or ETF.
But BTL 2, 3 and 4 are leveraged so it's the bank's money doing the heavy lifting while you, ahem, creme off the profits. Basically, you've got nearly 600k of the bank's money working for YOU. And better still, you're renting that money at an absurdly low interest rate. The going rate for BTL mortgages with your LTV is 5% or so. You have it for less than 1% averaged over the three mortgaged properties. You would be mad to let that go.
If you want to cash in, buy all means sell BTL 1 or 5 and have a bit of fun. But your mortgages are the gift that keeps on giving, a historical anomaly that won't be repeated. We will probably never again see sub 1% IO trackers in our lifetime. Keep her trucking!
But BTL 2, 3 and 4 are leveraged so it's the bank's money doing the heavy lifting while you, ahem, creme off the profits. Basically, you've got nearly 600k of the bank's money working for YOU. And better still, you're renting that money at an absurdly low interest rate. The going rate for BTL mortgages with your LTV is 5% or so. You have it for less than 1% averaged over the three mortgaged properties. You would be mad to let that go.
If you want to cash in, buy all means sell BTL 1 or 5 and have a bit of fun. But your mortgages are the gift that keeps on giving, a historical anomaly that won't be repeated. We will probably never again see sub 1% IO trackers in our lifetime. Keep her trucking!