making money from property!!

Doozergirl

I'd wait for a year before taking the plunge. If you're starting out you really need the market on your side because you are going to make mistakes when you start and you don't need the market wiping out the rest.

The golden rule is always to buy cheaply. It's so important - it might take me four months to find the right place but I'm a calculated risk kind of girl and I look for big margins. Don't look for renovations as such, look for cheap or potential in square footage.

Set yourself up with an account on rightmove. Watch the market all the time, get to know what's worth what so when the time comes, you know what's cheap.

Cleaver

elliotskeeper wrote: »

hi all this is my first post so i apolagise if this seems a stupid question but any helpfull replies would be greatly appreciated.

me and my partner live together in a house currently on a mortgage. when we bought the house it was an empty shell, so with a friend i did the plumbing, electrics fitted the kitchen etc, pretty much did everything with my friends help although i had no prior experience.

ever since i have been waiting for the chance to buy a run down house to do up and re-sell at a profit, recently i was left around £70000 and i am really keen to use this money to to do just that. i have got some knowledge of the housing market but not enough that i am that that 85+ % i want to be before i carry out my plan.

basically my questions in the current market is it wise for me to start in my scheme? or should i leave it a while?

my long term plan is keep doing this to make a living. i am in the army and see this best way to a financially better life for me and my family, if anybody can give me any advice it would be greatly appreciated?

thanks
elliot

A few people are being a bit cruel in their responses... but they are also correct.

Buying in to property to renovate and re-sell at the moment is a bit like buying a football club: If you're doing it for fun and don't mind throwing your money in to it without ever seeing it again, I imagine it'd be an interesting hobby. If you want to make money, look elsewhere.

My advice: put £69,800 in a savings / investment product. Then invest £100 in to shares of a housebuilding company (Redrow?) and £100 in to shares of a football club (Millwall?). Then when you get statements that show these investments going down and down they will be a nice reminder that you didn't put your 70k in the same place.

Cleaver

teabelly wrote: »

If you get a deep enough discount then you won't get a price drop as what you have bought will always be worth more than what you paid. If it isn't you just hang on and wait until it is again. Negative equity is only a problem if you have to sell or remortgage. If you don't do either it doesn't really matter what prices are doing which is why you don't sink all your capital into deposits. All drops are notional until you sell or refinance. You can always live in house, you can't live in an ISA.

With first direct dropping their rates it is a sign that the banks are out to make money again as their shareholders won't let them sit in this sulk for much longer.

'Fraid there isn't one line of that I agree with!

Well, I obviously concur that you can't live in an ISA. But by the same logic I can't live inside a tea bag, but I still purchase them on a regular basis.

Trollfever

Some lots in these auctions that appear to have been bought as doer uppers and I guess that the owners have run out of cash.
And we are only in the very early stages of the downturn.


http://www.cliveemson.co.uk/download.asp

geoffky

I Am Sure Their Are Plenty Of Btl People Willing To Offload Theirs......for A Small Loss..I EXPECT you will treble your money by the year 2099

leftieM

teabelly wrote: »

Right now the only sensible way to make money in property is over the long term.

A long term investment is a short term investment that didn't make any money.
Someone (probably on this site) said that and it's so true!

rizla01

I just feel that it aught be pointed out that absolutely NO-ONE on this planet (or on this Forum) can tell for sure that property will go down any more!! It MIGHT even go up.

It Might!!

It might NOT!!

One thing for sure is that the price of property doesn't alter if nothing is sold. How can it?

Most properties out there wouldn't sell today if they were to reduce by 10% - 20% - 30%.

Prices mean nothing without buyers.

GDB2222

You know, Rizla, that there's around a 1 in 10 billion chance of you being killed by a falling satellite in the next year or two. It might happen.

It Might!!

It might NOT!!

By the way, personally, I don't spend any time worrying about being killed by a satellite or house prices going up. Maybe, you're even more cautious than me.

Also, some transactions are still going through. It's a thinner market than we've been used to, but it's still there.

rizla01

GDB2222 wrote: »

You know, Rizla, that there's around a 1 in 10 billion chance of you being killed by a falling satellite in the next year or two. It might happen.

It Might!!

It might NOT!!

By the way, personally, I don't spend any time worrying about being killed by a satellite or house prices going up. Maybe, you're even more cautious than me.

Also, some transactions are still going through. It's a thinner market than we've been used to, but it's still there.

I was simply pointing out that the forgone conclusion echoed by everybody, that property prices ARE going to plummet, simply may not happen.

I have seen Property Prices do the opposite of what is expected but I have never been hit on the head by a satellite.

Reading your comment I might assume that you have, though.:beer: (Joking)

(Are smileys working for everyone else or is it just me?)

GDB2222

Of course you're right. Forgive me being facetious, please. There! I've hit myself over the head AND ironed my hands. Bad GDB2222!