Property - which way is best?
By rainbow
@rainbow (6761)
February 1, 2007 3:45pm CST
I have seen a 4 bedroom in 1.42 acres needing renovation for £150,000 about 12 miles away from home.
What I want to know is should I use the equity from my bungalow and rent the bungalow out to subsidise the 2 mortgages or Do I sell my bungalow and take on the £50,000 extra mortgage, my partner is a self employed bricklayer and general builder so this could cuase us problems, what would you do?
1 person likes this
5 responses
@snowflake5 (1579)
• United States
2 Feb 07
£150,000 for a 4-bed set in 1.42 acres, sounds like a bargain!
There are several things to consider.
1) is your partner's income stable? If it's not, then don't take risks with extra mortgage.
2) how much rent will you get for your bungalow? I would find this out before making any decisions. It could be that the income from the bungalow will pay for both mortgages.
Good luck!
@rainbow (6761)
•
13 Feb 07
this was going welluntil Shrek went to see the cottage, we knew one corner needed rebuilding - not a problem but it would be easier to knock it dow, it's a bit too far gone, which makes it too expwnsive for the price of the land and getting rid of asbestos tiles etc at £1200 per 3 tonnes,so it's back to looking for land.
We would have had to buy a static cvaravan to live in because the chimneys kitchen and heating were dangerous or non existant when he looked properly and with only about £50 a month clear profit from the bungalow as we would loose my carers allowance for Bong it might easily turn into a disaster.
Stll 5 acres of farmland for £15000 tp£20,ooo guide price going to auction end of month, Shrek tempted, bless him!
@snowflake5 (1579)
• United States
17 Feb 07
Asbestos is nasty and expensive to get rid of. Oh well, I'm sure another property will come up.
@polachicago (18716)
• United States
1 Feb 07
I would rent bungalow. For that money (it is about $300,000) you can have renovated alredy house in many (USA) states. Europe is so expensive.
Is it close to big city?
@Willowlady (10657)
• United States
2 Feb 07
This one is tough, renting can be iffy and then they could harm the place and that is more work during and after. Do you work, for that would lead me to say sell the bungalow and take on the property! You will have problems possibly either way. Take our your paper and make the two columns of bungalow and property, each of them get two columns for good and bad. See which listing wins out. I hope to never leave my property. My kids appreciate it all too. Good luck with this decision.
1 person likes this
@rainbow (6761)
•
2 Feb 07
Thank-you for your advice, that's a good idea and way to compare the two properties.
I love my bungalow too and don't want to part with it as I have had it 11 years but the extra garden would fit my future goats into it and give my boys a lot more space to play. It also has some tatty workshops which would make Shreks life easier as at the moment he has things stored at both our parents houses as well as at home. If we sold we would be taking on about £50,000 extra mortgage. If we rented the bungalow out it would pay for itself and give us a little towards doing up the new one, life is so complicated sometimes, it's just awkward because you can have mortgate problems with Self Employed work.
@MsTickle (25180)
• Australia
2 Feb 07
These days when there are so many ins and outs of financial dealings I'd be taking advice from someone. Either the lending body, or a credit union or even a financial advisor. Your circumstances put you in the enviable position of having several options. You and hubby need to sit down and discuss these options with a professional because you will want to maximise any returns and minimise any outlay without paying huge taxes or fees. There is also the renovation to consider. A lender may stipulate certain conditions before giving you a "go ahead". You need to do some research I think. Good luck.
1 person likes this
@rainbow (6761)
•
2 Feb 07
Yes, the more I hear and learn the more complex it seems, when I bought the bungalow there was no chain so it was easy, if I decide to go for it this time we are going to need a lot of help making the right decision, a friend today said I'd lose 25% of the total rent to tax before I started, which could make a difference to our finances before we start even.
It's scary but if we don't try we will never have anything for our boys.
