Need advice. What to do with houses and money

[Lucky boy]

I have found my self in a fortunate situation.

I am now the owner of a 4 and 3 bed property in the south east of England. Ruff values 260k and 185k
Have received 40k in cash.

My personal situation until recently is. Me and the Missus happy in a two bed semi in the midlands. Worth 115k 75k 19 year mortgage. She is happily employed earning well in the area. I'm currently unemployed...

My early thoughts are keep the properties and rent them out for a combined 2100 PCM. Thus generating me a modest income of what 1200-1500 PCM? I have a few of my own small business ideas and that income would allow me to pursue these and the time.


However not really having anyone else to discuss this with other than my Missus anymore. I'd like some more thoughts.

Cheers.

[stevenjhepburn]

You say "I" a lot but also mention your "missus". Are you married? If so, you are both now the owner of the properties and cash.

Keeping the properties and renting them out is certainly a viable option. If you are going to do that you need to consider how much to keep aside/put aside from the income for property bills/upgrades/repairs/empty periods.

If you jointly decide that the extra income allows you to pursue your business interests, that's fine too. However I would agree a time-frame after which you both review the viability of your business ideas (maybe 6-12 months). If at that point your businesses are not generating income or won't be soon, your wife may prefer you to find gainful employment again and contribute to the household income.

[thekingisdead]

You'll need to do the sums yourself, you may be better off putting a 75k BTL mortgage on one of the rentals, and clearing your own mortgage. The Interest on the BTL mortgage is deductible for income tax purposes.

Suggest you get familiar with excel and play around with a few scenarios :-)

[Kudos]

Any money owed on the btl's? what other debts do you have?

[Lucky boy]

Hi thanks for stopping by. Not married no kids no debts other than mortgage. Which is fixed for 4 more years. Going to make the maximum overpayments allowed. Will be more cash when vehicles and other stuff sold probably another 20-30k.

Edited by Lucky boy on Tuesday 6th August 16:32

[audidoody]

If you live a considerable distance from the "new" house and want to rent it out you will likely need a managing agent. That's around 12 per cent of your rental income spent on agent's commission right there (deductible).