Reply to: After paying off mortgage, what next

[SuperZ]

Definitely let your current place and buy another two bed. Two beds are the optimum for letting, and of course if you upgraded then you would not be able to let without lots of inconvenience. Property prices will appreciate if you buy in the right areas, so go for it !!

I thought one bed flats were the optimum but maybe it depends on the area.

Personally I think what has been the best investment vehicle of the past may not be the best investment of the future. Some people are planning on buying in a year expecting the mega % returns of the last 10 years but that may not happen, we might have a sustained period where prices remain flat

So diversify.......

Personally I`m not a big fan of property as an investment vehicle, it can be costly to maintain,comes with it`s own risks, not easy to sell and it can take a while to sell also and there are big costs involved in buying and selling. Oh yes, I am talking from experience. I have a rental property and have no desire to sell but it`s not the easy ride some people think it is.

[KentPhilip]

Bet it was worth it though. I plan to do something similar......in about 18 years

No I don't think so. When I got home I thought I had been a bit of a nob too...

ho hum.

[Cyberman]

Definitely let your current place and buy another two bed. Two beds are the optimum for letting, and of course if you upgraded then you would not be able to let without lots of inconvenience. Property prices will appreciate if you buy in the right areas, so go for it !!

[oracleslave]

Must have thought I was a right nob

Bet it was worth it though. I plan to do something similar......in about 18 years

[TinTrump]

I would get a BTL if a) I was still in the UK b) thought that prices had bottomed out and c) I could afford it! My house back in the UK is rented out and my flat here (Middle East) is paid for by my employer. So although its my main home its functioning as a BTL for the time being.

But I would also suggest that you diversify. I wouldn't (and don't) put all my money in one investment vehicle. Nothing exotic, with one exception:

One suggestion a friend made to me was buy art at a students' graduation exhibition. For a couple of hundred quid you get something you like (otherwise why else buy it) and there's the slender chance that it becomes valuable. I've bought a couple of paintings; no jackpot yet but they look good.

[Menelaus]

Say you are single and have paid off the mortgage on your 2-bed.

What next? Get another flat and buy-to-let?

Buying bigger house with a new mortgage seems strange and unecessary.

Pay off mine? Just a thought

[moorfield]

Say you are single and have paid off the mortgage on your 2-bed.

What next? Get another flat and buy-to-let?

Buying bigger house with a new mortgage seems strange and unecessary.

Remortage on an offset and repay keeping the balance down under £5k.

Use the offset funds for cheeky cash offers (+ small mortgage if necessary) on bigger piles being sold by desperate sellers.

Depending on the state of the market then sell or rent the 2-bed.

[contractor79]

would be nice to get buy-to-lets providing main income, say £40,000 rent each year, then I'd go and work contracts if I need some pocket money

think that's a long way away. I don't want all my income to be down to my personal work effort.

[TykeMerc]

Max out on the ISA allowance + save cash and then buy another property in a year or two.

That's probably the best advice.

I'm not convinced that the property market has hit bottom although it could easily be close in some areas.

While I doubt that property will rocket like it has done in the last decade or so it's probably a sensible investment in the long run if rented out wisely.

[s2budd]

My advice would be to....

If you are living away from home at the same location for a long, long contract then buy another place there.

else

Max out on the ISA allowance + save cash and then buy another property in a year or two.

[Evil Hangover]

Vegas

[contractor79]

How about forgetting property whilst the market is in the middle of a crash? Save your cash and dip in in 3-5 years time when the market has dropped. I mean, it's not like the economy is booming at present, so why lock cash away in a depreciating asset.

Nomadd

hmm, you think it will drop even further? wow, that's gonna really hammer some people I know. Some bought 2-bed flats for 200k+ ! And now they're asking 165-170k. I bought mine for 135k lately and in my view it's better flat than what they paid 200k for in the 2005/6 boom time.

[KentPhilip]

I remember walking into the Nationwide a few years ago and saying "I'd like to pay off my mortgage balance please" loudly at the counter.

They told me I had to phone in instead.

Must have thought I was a right nob

[nomadd]

Say you are single and have paid off the mortgage on your 2-bed.

What next? Get another flat and buy-to-let?

Buying bigger house with a new mortgage seems strange and unecessary.

How about forgetting property whilst the market is in the middle of a crash? Save your cash and dip in in 3-5 years time when the market has dropped. I mean, it's not like the economy is booming at present, so why lock cash away in a depreciating asset.

Nomadd

[zamzummim]

Say you are single and have paid off the mortgage on your 2-bed.

What next? Get another flat and buy-to-let?

Buying bigger house with a new mortgage seems strange and unecessary.

How about letting your 2 beds and buying a bigger property - the let from your 2 beds should pay for your new bigger property mortgage.