Is buying a holiday let/2nd home FIRE suicide?
•39f no kids
•95k salary with 10% annual bonus (I salary - sacrifice down to basic tax)
•500k value home with 185k mortgage remaining
•25k on 0% credit cards
•236k across ISAs (40k cash 56k S&S), HYSA (90k), Premium Bonds (50k)
•230k Pension/Sipp
•Looking at a coastal cottage, 2 bed, walking distance to a popular beach location.
•Deposit 40% @ 104k
•Stamp duty about 16k plus legal fees survey etc.
•Needs some work which estimate will cost about 5k.
•Plan to holiday let until mortgage is cleared and use as second home when not let. Family close by to keep an eye on it.
•Will cost about 1000 per month to run all in until I can qualify for business rates instead of double council tax, should then drop to about 650
•Annual rental estimate 25-30k.
Is this a mad idea?! I’m not desperate to become a landlord but I like the idea of a part investment part lifestyle property, and could even see myself living in it full time in the future, at which point I could either sell my current main home or rent it out.
I only started learning about FIRE about a year ago and have aggressively been trying to catch up by maxing ISA contributions and salary sacrificing, but am holding off investing more cash until I’ve decided whether I’m buying a 2nd property or not….thoughts welcome! 🙏🏻