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£50.000 Decision ! What would you do?


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Hey Fellow Investors Enthusiasts, I find myself in a scenario where I have 2 options both with their own pros & cons. I would be intrigued if you could provide me with your opinion on the matter; the 2 options are as follows.:)

 

Option 1

 

Should we extend our townhouse house for ourselves 3 people & convert the other part of the house into a 3-bed ensuite 1st-floor apartment to rent out.

 

Pros; add value, impressive yield, Cons; couldn’t sell the house

 

Or option 2

 

Buy a 3 bed for £50.000 to rent out, at this moment in time we don’t have access to credit, at this stage.

 

Pros; sell the house if needs be, access to credit, Cons; not as lucrative.

 

Just to note; we have a small flat on the grounds that provides a rent. Along with a commercial business in the front room of the townhouse that provides a rent also.

The idea would be to compile these 3 identities into an Ltd company in order to build a portfolio & access to credit.

 

Is there any other alternative?

 

Thank you for viewing, Regards Tom.

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Hi Thomas,


Congratulations on expanding your portfolio! 


Two great options and really like that you have weighed out the pros and cons.


I think you only person that can give advice to you is yourself you will know what is best for you and how you like to work. 


Would you like to expand your current property and have tenants close by? Is selling the property going to be hard after conversion when you get to that stage or would you like a second property? 


Choose what works best for you.
 

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Hey Katherine,

 

100% only I can really advise, however, perspective is always relevant.

 

The idea really is to use the funds to start the groundwork for a property business & develop a decent credit rating.

 

The extension wouldn't cost as much & would produce a better return, yes a second property would be attractive however it would appear to be more prudent to accumulate a second & third property after I could produce company accounts stipulating a year's takings in rent (3) properties.

 

When you say, Would you like to expand your current property and have tenants close by?  are you highlighting is it wise to be living so close to tenants/intertwined? If so fair point.

 

Thank you for your reply, do you invest?

Regards Tom

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Hi Tom,

Definitely other perspectives are always good to have. You have good knowledge in the field I just think sometimes it’s good to have a reminder to stay true to what you would like.

 

“When you say, Would you like to expand your current property and have tenants close by?  are you highlighting is it wise to be living so close to tenants/intertwined? If so fair point.”

 

Just something to think about as again that is completely down to personal opinion if you would like to have tenants close to yourself or not.

 

Your very welcome Tom and I wish you all the best, let me know how you get on if you can.
I do Invest myself.

 

Kind regards
Katherine 
 

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