how do i go about getting more properties under my belt?

Well hello, adzldo, and welcome to the forum.

You don't really seem to need any advice from those of us mortals who have one home that we live in.

I wish you every success.

Personally adzldo,and welcome to money.co.uk,as Feline123 commented you seem to be very astute and organised with your properties,and finance.I have a friend that ownes a lot of property,but i remember him telling me that you can only purchase 2 properties a year now,so all depending when you purchased your other homes..please check this info..If i were you i would be looking for somewhere to put your spare cash ,fore the taxman gets his hands on it.Good luck.

thanks to blondie and feline123 for your comments but as i am only 2 yrs into properties i am well out of my depth and comfort zone on how to work my money. my aim is to get more properties using this money obviously to generate more income as my only income is from the 2 rented properties. so i dont want 2 waste my spare cash. so what do you all recommend is the best way forward.

Hi,

Normally you'd mortagage your mortgage free properties and use that money as a deposit on further houses. Always go for an interest only mortgage as it's fully tax deductable against rental income.

The trick is to make sure the rental income is greater than all the bills on the property - mortgage, buildings insurance, boiler insurance, landlords insurace etc. - with some left over to provide a cushion against necessary repairs (e.g. replacement boiler, new bathroom or kitchen) which typically crop up every 7 - 15 years. If you can't get the rental income to cover all these expenses then don't get a property. Plenty of people ignored this basic tenet and were renting out properties the expenses for which were not covered by the rent. They were hoping to make their money back by selling for a profit later. That's not investment, that's speculation.

Always look at the cash flow first. If that doesn't work, don't try going for a balance sheet approach by hoping for asset appreciation. It's a house of cards, as many wannabe landlords have found out over the last 4 years!

I've been wondering what to advise as I'm not a property expert, but G-Man's advice sounds good to me.

Yes,i have to agree with G-Mans response,sounds very positive advice..Adzido,do you feel that you need more property and more hassel?

Hi adzido and welcome to the forum.

I can only look at your situation from my point of view and to be honest I would be content to have what you have in assets and income right now. As such, I don't think you really need any advice, do you?

Having said that, I would be interested to know what part of the world these properties are in as the values are low as is the rental income. If you really want to boost your property empire, I think I would be tempted to see how this year pans out with interest rates rises and the capping and reduction of housing benefits. You may well find some bargains at auction towards the end of the year, I suggest.

thanks again to you all the properties are in the northwest.g.man your comments are food for thought.for instance you said go for interest only however wouldnt that be abit foolhardy as the interest rates are bound to go up in the near future and also wouldnt that mean i wouldnt be gaining any asset in the building unless the value goes up?so even though you pay more on a buy to let you do eventually own the property. also are there not fixed rate buy to let mortgages about? i woould love to hear comments from all thanks

Something that noone has mentioned so far, despite all the excellent advice you've received, is your age and how much income you want. The fact that you already have 3 properties mortgage free and substantial savings would indicate that you are probably not someone at the start of their career. Certainly without remortgaging any of your existing properties you could buy another outright when your policy matures which could presumably bring you in a similar amount as your other rental properties. However, it would reduce your capital significantly. Would this be a problem for you? If you are already retired and you followed the interest only route suggested then yes, you would be relying on the value of the property going up, and the value of the rents received, to provide you with an appreciation on your investment and this may be many years away in the current climate. It almost certainly will happen but noone knows for sure when this will be. A young person can afford to wait many years but an older person may want a speedier return. Only you can say for sure which route to go. There are pros and cons whichever route you choose. There are more companies coming back into the buy to let mortgage business again at the moment.

Good advice below, but I would like to point out something not mentioned below.

You already have a lot of exposure to residential property and all in the north. Do you really want another property and more exposure to the same asset class. Maybe take a look at commercial property??

Hey! Who am I to advise you as you have 3 mortgage free properties and I am still paying of my mortgage in the house I live in.

cheers hsp i tend to find that commercial properties these days tenants come and go to easily leaving debts and also find costs to put it back to a reasonable condition expensive. however i havent totaly ruled it out. i must admit it always takes me along time to decide which avenues to take but when i do everything moves quickly. a piece of advise never rush into anything it could save you thousands.
i have a golden rule 3 strikes and out ie if you go to buy a property you realy fancy and have 3 problems such as just getting a viewing or vendor stalling or even just solicitors on holiday let it go it wasnt meant

have you never considered buying more commercial properties? You seem to have managed well enough thus far, but know people who own properties for rental and a lot of them seem to be getting too trashed and require expensive repairs.Good luck.