Buy with cash or mortgage my first BTL property?

Reply to the comment left by "JMc Lancashire" at "27/01/2016 - 18:40":

It is all a personal decision about how much risk you want to take but if you want to expand the portfolio at a reasonable rate buying 1 property with cash is not the quickest way I have seen people go about it...
I've seen quite a few people who have done the Ltd company route and not had issues with employers but yes it is best to check, also depends what type of employment you are in if there are any conflicts or not.
A lot of people are put of the limited company as they fear the "responsibilities" of being a share holder and director although it really isn't as bad as some people fear. There are some decent finance products out there for people putting the properties in to ltd companies as well instead of doing it personally, seems some of the lenders are trying to get in to this market more.

Reply to the comment left by "JMc Lancashire" at "27/01/2016 - 18:40":

If fear is the obstacle that`s fine but just work on that aspect
Its brave of you too to acknowledge that. Many don`t
It can be beaten with logic/ hypnosis / mentor /books / meeting with fellow investors/ action .
Some investor clients i advise wont acknowledge fear . They use 101 other reasons / excuses as to why its not quite the right time to invest. If they do admit it and cant deal with it i go boot camp style on them sometimes. Sometimes they need TLC. Everyone's different .

I have high net worth clients who are strong minded and very successful in their own businesses but act like babies in property. Thats ok . Im a baby in their fields of expertise but to them of course its child's play. We face fear all our lives. First day at school. first date, first driving lesson , first interview etc etc But we kinda overcome it dont we...

Inject yourself with anti fear drug

https://www.goodreads.com/work/quotes/2067235-feel-the-fear-and-do-it-anyway

Feel the fear and do it anyway

( well after you have had your breakfast anyway )

This is me and i mention a little bit about fear in it

https://www.youtube.com/watch?v=rVJmBFYPHl8
.

Jen, Give me a call ,i want to sell our 5 x flats ,

Surely as a higher rate tax payer, unless you can go down the Ltd Company route, B2L is no longer financially viable if you need a 70% LTV mortgage?

In this situation surely it's better to have one unencumbered property?

Reply to the comment left by "Graham Durkin" at "30/01/2016 - 12:46":

Sorry Graham flats aren't the market I'm interested in.

Reply to the comment left by "Paul Fay" at "30/01/2016 - 13:13":

Looking at longer term equity and leverage in future one property won't do it for me. Also there's the all my eggs in one basket scenario with one property so spreading my risk is also a positive for me

Reply to the comment left by "JMc Lancashire" at "30/01/2016 - 15:08":

Technically all your eggs would be in one basket (property), but the key point that Paul Fay is driving at is that as a higher rate tax payer, once the tax changes kick in, a 75% LTV portfolio would be cash flow negative ie. you would pay out more in tax and interest than you receive in rent. Banks are still lending at these LTVs to higher rate tax payers, but possibly for not much longer. This may make remortgaging harder.

I would suggest lower LTV - say 50% on fewer properties. When houses prices rise further, you can add to the portfolio.

Reply to the comment left by "H B" at "31/01/2016 - 16:12":

It's pretty much break even based on the tax changes, but that does depend on mortgage rates remaining low. Any change would put me into a negative situation so yes you're right - 2 on a 50% LTV would be more sensible - rates won't remain low forever. In terms of eggs in one basket I was referring more to rental voids - although I'm aware that you could have voids all at the same time in multiple properties, so nothing is ever guaranteed!

Jen

Just do the maths and you will get your answer.

Raj