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BTL debt has personal recourse so from a risk perspective it’s the same as clearing out the offset account on your primary residence to buy equities. Or portfolio margin loans (which do exist).
At current rental yields there really isn’t very much rent left when you take maintenance, voids, interest and taxes into account.
NickCJ-
BTL debt has personal recourse so from a risk
Yes, sorry, I wasn’t clear. I meant no risk from the point of view of using the money to give to your child as a house deposit - if house prices rocket it works, if they don’t your child will find it easier anyway.
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At current rental yields there really isn’t very much rent left when you take maintenance, voids, interest and taxes into account.
No, not immediately but rents go up over time too. Obviously recent tax changes and interest rate rises make it far less attractive but residential property done carefully remains a sensible thing if that’s what you fancy.
Hefty
Well, yes, but can you even get that sort of borrowing?
And like your reinvested dividends my fictional investor could reinvest their rental income.