How best to fund re-development

Nick_ukay

Hi All

I have a seen a bungalow which in my view with some modernisation could be a good way to earn some extra bucks!

What I wanted to know is how best to fund the purchase / building works to get this project off the ground. Currently I don’t have a great deal of savings ..could possible stretch to 5% deposit of the asking price. I don’t want to sell my existing home as I intend to put the bungalow up for sale as soon as the modernisation is complete.

I have spoken to buildstore regarding finance and the best they could offer is 65% of purchase and build cost ...meaning I would have to find a partner to raise the short fall in capital. A re-mortgage on my existing home would not give me enough funds.

How about a bridging loan? what’s peoples view on these?

Any advise greatly received

PasturesNew

This is why most people have not developed property before - nobody had the money before the last few crazy years of over-lending.

Keep your money in your pocket. Forget it. You'd be over-indebted in a market in freefall and you've obviously not done one of these before or you'd not be asking the question, which means you'd have teething troubles getting it turned round in time and on budget most likely.

In this market if you don't have the cash to do the work then you're risking everything on a gamble.