can i do this???

lauren1983

hello
i wonder if anyone can help me.

i would like to get into property development.I seem to have most things sussed but ....


this is my problem!!!
i would like to keep the house i have now (on a mortgage) and rent it out.
and then buy a new house (with a mortgage) to renovate.

does anyone know if this is possible?

nmiah786

lauren1983 wrote:

hello
i wonder if anyone can help me.

i would like to get into property development.I seem to have most things sussed but ....


this is my problem!!!
i would like to keep the house i have now (on a mortgage) and rent it out.
and then buy a new house (with a mortgage) to renovate.

does anyone know if this is possible?

Watch out Kenny and Co will be over shortly to advise you

Doozergirl

In theory yes but it's not something I'd recommend. You'd have to speak to an IFA. You would have to swap your existing mortgage to a BTL. I suspect for a new mortgage application to be succesful, your rent will have to cover 130% of your mortgage repayments and you'll need a decent deposit on the next property. TBH, cash is king when you're buying a project as you'll be up against cash buyers and many houses go through auction.

You really need to know what you're doing to succeed in renovations now. There is no rising market to compensate you for your mistakes (especially if you're planning to sell on quickly) and mistakes always happen the first time, especially the budgetry sort. It also takes several developments to find good contractors, establish working relationships and get decent prices on work.

Even if you plan to do work yourself, it's a proper full time, exhausting, dirty, stinking job - you should smell my husband!

Apparently, if you invest in the stock market these days, you can shop til you drop and drink cappuccino all day!

nmiah786

Doozergirl wrote:

Apparently, if you invest in the stock market these days, you can shop til you drop and drink cappuccino all day!

:rotfl: :grouphug: _pale_

nmiah786

Like Doozergirl said its theoritically possible but there are big risks involved, especially if you are going to remortgage you current property and rent it out and live/work on the project (I'm assuming you are going to live/work on the project since you will be renting your current house).

On paper it might sound very easy to do but when you actually get into the project its completely different. Loads of stress, HASSLE, pressure will come your way if things start to go pear shape. Make sure you have budgeted correctly and make sure you always take a pessimistic view of what the house will be worth when you have finished renovating it, that way you might be pleasantly surprised.

Also please research, research and research the area the house is in to get and idea of the price in the area and compare it with your initial purchase price, expected cost to renovate and the final selling price (minus selling cost).

I apologise for going beyond the merit of the questions you asked;

i would like to keep the house i have now (on a mortgage) and rent it out.
Yes that should be possible but like Doozergirl said your expected rental
should be between 100% - 130% of the mortgage interest payment per calender month (varies dependent on lender)

and then buy a new house (with a mortgage) to renovate

Should be possible dependent on how much equity you have in you current property and how much you want to take out, the purchase price, and your salary.

Your best bet is to see a IFA.

All the best in your venture.





Quickly gets his coat and runs out before Kenny & Co turn up!!!! :wall:

Kenny4315

lauren1983 wrote:

hello
i wonder if anyone can help me.

i would like to get into property development.I seem to have most things sussed but ....


this is my problem!!!
i would like to keep the house i have now (on a mortgage) and rent it out.
and then buy a new house (with a mortgage) to renovate.

does anyone know if this is possible?

It is possible and is called let to buy. However, as everyone has guessed I would advise against this plan. It sounds too risky a venture as you will be burdened with debt on both properties in a flagging market. I have done this myself about 5 years ago, and am over £200k up on the house I rennovated and now live in, although it has taken a bit of a hit in the last 6 months, and I expect it to go down some more.

In a rising market as it was then it gives you a double whammy benefit, gain on both houses, but the opposite is true in a falling market. You can also use the 3 year taxation shield against your former main residence, subject to certain constraints which can be found via Inland revenue guides. Also it sounds to me as if this would be your first venture into this sort of thing, which will be a steep learning curve. It is not as easy as some of these programs make it out to be.

As for cappucino, I never drink it in the afternoon, as any person with a parent you comes from Italy would know. I prefer beer when it's going up when I check the FTSE :beer:, and coffee when it going down, so it looks as if I am going to be having lots of beer this year !! :beer: :beer:

Doozergirl

Kenny4315 wrote:

As for cappucino, I never drink it in the afternoon, as any person with a parent you comes from Italy would know.

They'd also know how to spell cappuccino aswell, wouldn't they? :P

nmiah786

Doozergirl wrote:

They'd also know how to spell cappuccino aswell, wouldn't they? :P

Doozergirl

I think his too busy watching his FTSE gains increase and having a few too many beers to notice his spelling! Let him drown his "sorrows" in peace!!!??

Ian_W

DoozerG wrote: Even if you plan to do work yourself, it's a proper full time, exhausting, dirty, stinking job - you should smell my husband!

Ermm .. I'll pass on that one thanks!!

They'd also know how to spell cappuccino aswell, wouldn't they?

:rotfl: :rotfl: :rotfl: :rotfl:

Doozergirl

:hello: Ian W, nmiah786

And here was me thinking I was the only one here!

I was aiming for every thread on the page to have my name on it as the last poster. I was even considering dragging up the old "yoocan" thread :rolleyes:

:spam:

Doozergirl

lauren1983, i must apologise for hijacking your thread :beer:

nmiah786 wrote:

HASSLE

this week's 'word of the week' :rotfl: