I am wanting to start out into proprety investing. I have $10,000 cash. I have my own home worth £175,000 with £21,000 left to pay on the mortgage. I have a second mortgage which i took out to extend the house with £15,000 left to pay.
I am paying double on the second mortgage to try and get it finished and it wil be done in 3 yrs. The other mortgage in 7 yrs.
My question is should I pay the £10,000 cash off the second mortgage or should i use it as a deposit on a piece of property? Or should I sell the house, pay off mortgage and then start investing? Wife is not keen to sell though..lol!
Nigel, first learn all the different tactics and ways to do things, and then apply your area's laws to them.
Once familiar with what to do a lot of people do not have the monies needed to fixup and or pay closing costs. That is where you should use the value of your house to assist you. A Home equity loan is probably the least costly interest wise and when you do complete the sale you pay off the loan and do it again.
I would go ahead and pay down the higher interest rate mortgage loan and apply for an HELOC.
You only pay interest on the amount of the line of credit that you actually use.
You do make monthly payments, but can write a check (give yourself a loan) against the account at any time you choose to for anything you choose as long as the total amount does not exceed your credit limit.
I really give no other advice as to where to learn as this forum is the best around anywhere. You will want to spend a whole lot of time reading about different subjects. Use the search box uptop for certain subjects and READ.
I did notice the pound sign and dont want you to think that the things that work here will also work there.
They may and may not. It is best to learn but keep in mind the different laws that your country abides by and seek legal council for what you want to do.
My learning is underway and I am finding this site amazing as you said, all info is here.
I have a small question for you if you have time to answer? I called in my parents house today and they know nothing of my learning about property investing.
Any how they happened to mention that a neighbour of theirs has said he is going to sell his house as he is sturggling to pay his mortgage since his partner has left him! I know this opportunity has come way too early for me as I do not know enough. I am just wondering how you would approach and deal with this opportuinty?
I have been doing alot of learning. I have noticed whilst driving around a small ground floor apartment, it appears to be unoccupied, blinds are closed and i can see mail piling up between the glass door panel and the curtain over the door. The grass out front needs badly cutting.
How would i go about finding if this maybe for sale?
Jawsette you mentioned applying for a HELOC, how would I go about this? Is it easy here in UK?