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barry hughes

Under Leveraged

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Hi All,

My name is Barry and its my post on here so go easy on me! i am looking for some advice from experienced property investors that are usually mostly leverage to expand their property portfolio

My situation is as follows me and my wife have 11 buy to let properties 2 of which are unencumbered ( no mortgages on them) and the other 9 have buy to let mortgages with 60% LTV Mortgages our current cashflow is 4000 pounds a month but i want to get it up to 6000 pounds a month but i just cant get over my mindset of refinancing and releasing equity up to 75 % LTV on some of them, im kinda of old school where i would be more in the mindset of trying to pay the mortgages all of instead of releasing equity

i suppose what i am trying to ask is what is a safe point whereby you are not too much over leveraged and at exposure of interest rate rises or contrary where you are under leveraged and not getting full use of the available equity in your properties to further expand your portfolio

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Hi Imi-ezi

Section 24 has no real impact on us as we are both lower rate tax payers in fact my wife is at home full time with children and my job im uk non resident so only have to pay 20% income tax on profit from properties in my name

really tempted so leverage up some more but hard to know what to do thats why im reaching out here, i think its more a fear midset i have where i have a few already paid of and dont want to go back into debt on them although it makes sense to expand you passive income every month

Barry

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I guess it depends on your risk appetite. Finance providers do build in stress tests as a safety barrier. You can impose a stricter stress test yourself.

Do you have a target of number of properties to hit your cashflow goal ?

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Hi Kent

We are at 11 properties now and instead of going more buy to lets i am going to try and secure two serviced accomadation apartments in belfast one in my wifes name and one in my name that shouldnt be too far from where i need to be cashflow wise, there will be soem challenges especially for me getting the ex pat mortgage

im going to listen to the Two Robs, podcast yesterday which i see was on mortgages to see if i can take anything from it

what about your own property goals where are you at.?

Barry

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