Updating post from Reddit.
Hi
I am looking for some advice, I am currently thinking about using the equity in my flat to buy a second property for me to move into and to rent my current property out. I am in two minds about to do this or not, and would appreciate some real life advice.
Is there any hidden costs that I should look out for? Any hints and tips would be greatly appreciated.
If it makes a difference I am based in Scotland.
Thanks for your help.
Are you leasehold? Some require permission.
Are you secure in your employment? Could you cover two properties without impacting on your lifestyle?
Would you require an accountant to support your filings?
Would you retain an emergency fund that would cover unforeseen repairs on the property? Would this equal 10% of the property value?
Some question that might help. Good luck!
You will need 25% deposit as a minimum for the BTL mortgage. I would also think about how you want to set this up. Buying an additional property in your own name will attract additional taxes. If the plan is hold multiple properties then it would be better to purchase them via an SVP Ltd company. However this will likely require an accountant to file the accounts for you.