So you want to release equity of £150k to re-invest in something else. Why would you take equity from 1 property at 4% to invest in another property where you may not get a higher return? Any investment you make will require a net return of 4% simply to break even. Obviously to get a higher return than that you will need to take risks on your capital. From an overall risk perspective the proposal does not seem to make any sense. You are getting a gross return of 4% on your existing property with finance costs of €750 pa plus other costs of renting out the property. I.e. Your net return would be well below the 4% requirement.If I do go ahead with taking the equity, what is the best way to reinvest it? Should it be in property or elsewhere?
You appear to have no investment strategy or appreciation of risk (I'm taking this simply from the tenet of your post). You would be well advised to take professional advice before embarking on a risky strategy that could end up with you losing a substantial portion of your equity in this property.
Get professional advice! See both of the above posts! If you are not an expert in investing then you run the risk of losing your full investment in seeking high returns.What can I do with the equity to do this?
So what do you advise? Should I just keep everything as is?
Or would I be better off selling the property outright?
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