What to do financially

Buy a personal pension plan. You get extra tax relief, and boy, are you gonna need it!

Ask your IFA which plan they recommend.

Yes, that's almost one foot in the grave :-)

Tony

If many houses are around £100k where you live why don't you buy another? Ensure that the mortgage interest is enough so that you don't pay any tax on either rental income. If prices are depressed then eventually you should make significant capital gains.

The downside to that is that, if prices still have further to fall, the OP would make a significant loss.

Same with the house he already owns. Would anybody suggest he sells that?

From the OP:

"I am currently renting a house with several friends so my outgoings are very small."

If I were in his position then I would.

I don't understand the relevance of this comment. If you're trying to suggest that the fact he is renting means he doesn't already own a house, I draw your attention to this from the OP:

"I have a mortgage of 25k left to pay and equity of at least 75k" "My house is being rented out"

Ah yes, I missed that bit. My mistake.

So the OP does already have some exposure to the property market. At this point he might want to ask himself if he wants to buy *another* house in the same area or does he want to diversify his assets?

Hi and thanks for all the comments so far, please find below my own replies.

Quote: Buy a personal pension plan. You get extra tax relief, and boy, are you

gonna need it!

Reply: I have been in a pension plan since the age of 18 but not for the past

3 years due to a change of employment and not really sure whether it's worth continuing.

Quote: If many houses are around 100k where you live why don't you buy another?

Reply: I have thought of buying another house in the same area as the rental market there is good but as yet I have not made up my mind as to whether or not I want to be tied into something long term. Another reason for the uncertainty is because I am planning on giving up work in 5/7 years time and embarking on a 3 to 5 year travel plan (The financial side of this plan will be taken care of)

Quote: Same with the house he already owns. Would anybody suggest he sells that? If I were in his position then I would.

Reply: Why would you suggest I sell my house?

Quote: So the OP does already have some exposure to the property market. At this point he might want to ask himself if he wants to buy *another* house in the same area or does he want to diversify his assets?

Reply: I would be interested in diversifing my assets if only I knew what options were available.

Thanks again to those who have been kind enough to reply and let me appologise in advance if I appear naive in anyway to the workings of the financial market.

James