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How can I get the most out of my property, financing. leverage

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  • 01-02-2022 2:36pm
    #1
    RichardDoyle
    Registered Users Posts: 5 ✭


    I own a property outright without a mortgage. Currently being used as a rental.

    Wondering how i can use this property more to my advantage. Any strategies that could be used.

    What type of professional would be best to speak to for advice ie. financial advisor, accountant, mortgage advisor??

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    #2
    Timmaay
    Registered Users Posts: 11,394 ✭✭✭✭Timmaay


    Would be useful to talk to all of them lol. A mortgage broker will tell you straight up if you can remortgage the existing property. You'll still obviously need a cash deposit, and usually 70% max LTV except 1st time homeowner. Do you actually want to remortgage the existing property is a reasonable question, it would be cleaner not to bother if you happen to have that 30% deposit (given your collecting rent mortgage free I'm assuming you got reasonable savings again?). Of course you need to consider the tax implications of all this, will another rental income be all in the high tax rate for you, and therefore roughly halving the take home return. And you absolutely need to be aiming for a 10% roi in my view, obviously that's not easy to achieve but I think you're wasting your time with likes of 8%, taxman takes 4%, and unexpected costs, poor tenants etc you could be back to 3% or less easily. Personally I don't bother factoring in the increase in property prices, that's more of a bonus, we have been on a crazy run the last 10yrs, and who the hell knows when it will pull back, last thing you want then is very average rental roi and the property losing value.



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