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Buy - Do Up - Sell

will369
will369 Posts: 527 Forumite
edited 6 January 2018 at 11:30AM in House buying, renting & selling
Hi guys,

So I currently live at home with my dad, 26 years old.

In about 2 years I will have £20,000 saved. That would be for the Mortgage.


I do eventually want to move out. But I think I will struggle on my own earning what I do.

I live in Woodbury (Exeter). I would like to live in Exeter.

I currently earn, after tax. £400 a week.

What I would like to do is make money, who doesn't?

I would like to buy a run down place, do it up, and sell it. I have several friends in the trade who can do jobs at mates rates.

£20,000 for the mortgage.

How much would I need to do it up? Another £20,000?

Is there money to be made in buying a house, and renting it out daily / weekly to people?

I might be living in a dream world thinking I can do all that with 20k? My Dad may help me and give me some money, or go in with a friend.

Is there any advice you can give me, or is it best I just save as much as I can for the next 2 years?

Also, is it best I set up a 5% government savings account? Or just chuck all the money in 1 basic savings account?

Thanks guys..
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Comments

  • seashore22
    seashore22 Posts: 1,443 Forumite
    First Anniversary First Post Combo Breaker
    You haven't mentioned a mortgage. Are you expecting to buy a property and do it up with £20,000?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    will369 wrote: »
    Hi guys,

    So I currently live at home with my dad, 26 years old.

    In about 2 years I will have £20,000 saved.

    I do eventually want to move out. But I think I will struggle on my own earning what I do.

    I live in Woodbury (Exeter). I would like to live in Exeter.

    I currently earn, after tax. £400 a week.

    What I would like to do is make money, who doesn't?

    I would like to buy a run down place, do it up, and sell it. I have several friends in the trade who can do jobs at mates rates.

    I might be living in a dream world thinking I can do all that with 20k? My Dad may help me and give me some money, or go in with a friend.

    Is there any advice you can give me, or is it best I just save as much as I can for the next 2 years?

    Also, is it best I set up a 5% government savings account? Or just chuck all the money in 1 basic savings account?

    Thanks guys..

    Are you planning to live in the doer-upper or is your intention to keep living with your father whilst you do up and then sell the property?

    Don't be too sure about your friends doing you mates rates. They need to eat too and it's not as if you're doing this so you'll have a nice home to live in you're doing this to make a profit.
  • will369
    will369 Posts: 527 Forumite
    seashore22 wrote: »
    You haven't mentioned a mortgage. Are you expecting to buy a property and do it up with £20,000?

    Edited my post mate. Cheers.


    £20,000 for mortgage.

    Not sure how much extra I would need to do it up? I know it depends what I do. An Extra 10k? 20k?
  • will369
    will369 Posts: 527 Forumite
    Pixie5740 wrote: »
    Are you planning to live in the doer-upper or is your intention to keep living with your father whilst you do up and then sell the property?

    Don't be too sure about your friends doing you mates rates. They need to eat too and it's not as if you're doing this so you'll have a nice home to live in you're doing this to make a profit.

    I would live with my Dad whilst work is done on the house. I don't pay any rent at my Dad's.


    If there IS money to be made. My dad WILL help. I jsut need to know roughly how much I need.

    Cheers
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    will369 wrote: »
    I would live with my Dad whilst work is done on the house. I don't pay any rent at my Dad's.


    If there IS money to be made. My dad WILL help. I jsut need to know roughly how much I need.

    Cheers

    The HTB ISA and LISA are you help you purchase your first home. You would not be purchasing your first home because you have no intention of living in the property and would therefore not be eligible for the bonus. Furthermore, you would require commercial lending not a residential mortgage, and will need to pay income tax on any profits you make flipping the property.

    You have given no indication as to what sort of property you are planning on buying and therefore what kind of property price you are looking at so it is impossible for anyone to say how much you will require, roughly or otherwise.
  • seashore22
    seashore22 Posts: 1,443 Forumite
    First Anniversary First Post Combo Breaker
    I'm still not clear, you want to borrow £20,000 via a mortgage? You keep saying that you have £20,000 for the mortgage, so it's a bit confusing.

    You will also have £20,000 saved, so that's a pot of £40,000 in 2 years time. That's not much.
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Name Dropper First Post First Anniversary I've helped Parliament
    You are living in dream land.

    You need to be able to buy outright with no mortgage and have enough to do the renovation.

    You will be competing against others who may wish to live in the property so they don’t care about maintaining a profit margin, they are willing to pay more for the house than you.

    You are looking to buy at the point in the housing cycle where a house price correction is looking more likely than house price rises, buying to make a profit at this point is risky.
    When using the housing forum please use the sticky threads for valuable information.
  • seashore22
    seashore22 Posts: 1,443 Forumite
    First Anniversary First Post Combo Breaker
    Have you even looked at the cost of a property? You can get a 1 bed mobile home for £60,000 in Exeter. I think you're on a hiding to nothing.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    will369 wrote: »
    I would like to buy a run down place, do it up, and sell it. I have several friends in the trade who can do jobs at mates rates.

    You might get mates rates on a house you are buying to live in, as your home. You wont on a house that's purely a business venture or if you do, you are almost literally stealing the food out of their mouth. Would you go and do someone else's job for them so they can profit from it?

    will369 wrote: »

    I might be living in a dream world thinking I can do all that with 20k?

    Yes, you are on two counts, mates rates and the money needed.
  • will369
    will369 Posts: 527 Forumite
    in 2 years I will have 20k saved (my money).

    At this point my dad will help me, he could give me 20k - 50k.


    If I am being perfectly honest. I just want to use the money to make money. Either that in property, or a business. I just dont have much to give other then the money :/
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