Originally Posted by K5SSY
the way i see it: the rich are getting richer and if you have to lend money to do this then its a deffo nono. only people who have loads of money and been in the game a long time are benefitting from the situation.
in my area: 100k property £600 a month mortgage, and the rents around here would be about £500 on a 100k property. you work it out its not rocket science is it.
it's not rocket science that the word is 'borrow'
it's not necessarily essential to for the rent amount to cover the mortgage payments if you see it as a long term thing for the future where you have it on a repayment mortgage and will one day own it outright (in addition to your house that you live in) and can sell it off as a form of pension (or keep taking the rent from it for your pension after the mortgage payments have finished)
as long as you can afford to pay both mortgages without problems, even if the rental one goes unrented for a period of time and/or interest gates go up further, then you cannot really lose long term. although you can win by more if you don't buy now when prices are high and buy if there's a drop in the market (although you will not have as much, if any, equity in the first house then)