Advice/ideas on moving back up the property ladder...

PThomas_2

I am currently finishing an extension on my family house, this will make it a 5 bed detached property. Unfortunately I am getting divorced and my ex will want 65% of the equity.

So once the property is finished and sold I should have around £45k to invest in my new house. I appreciate I won't be able to buy anything similar for a long time but would like to work up to a 4 bed detached house out of town with maybe a large garden (Live in Worcestershire).

Can anyone offer advice on how I should go about buying and selling to get myself back up the ladder?

I dont mind getting my hands dirty and can do plumbing, electrics, DIY to a very good standard.

For example, should I get a 3 bed semi for maybe £150k and build another extension and then sell 3 years later (Maybe interest only mortgage)

Or really push the out out while house prices are low and get a £200k 4 bed house that needs some work and then sell it in a couple of years for a good profit.

Or maybe something else.....

Any ideas, suggestions very much appreciated. I am in no rush with this as it will be a few months before the house is even on the market! But I definately want to start getting my head around this. I just know I wont be able to afford the house of my dreams for quite a few years!

poppysarah

You've got to sell the house first

Why not rent for a while?

QTPie

PThomas wrote: »

For example, should I get a 3 bed semi for maybe £150k and build another extension and then sell 3 years later (Maybe interest only mortgage)

Or really push the out out while house prices are low and get a £200k 4 bed house that needs some work and then sell it in a couple of years for a good profit.

To do this in a "FALLING MARKET" is VERY risky: you COULD buy a 3 bedroom semi, spend lots of money doing it up (including an extension), then struggle to sell it for as much as you paid for it (in the first place) in 6/12/18/24 months time....:eek:

Most people who are buying any type of investment property are buyign for the "longer term" - they will ride out any recession and wait for house prices to rise again (at least 5, possibly 7/10 years time).

If you buy anything now, don't do it as a "short term investment", only do it as - at the very least - a "medium term home" for yourself (but preferably either a long term investment or a long term home).

If I was in your position, I would look to rent for a while. House prices are very likely to continue to fall, you SHOULD (no gaurantees!) be able to get further up the property ladder if you wait a while. This is what we are doing: well we are selling (hoping to exchange contracts this week), renting for a while and then buying when the right property comes long at the right price (not necessarily at the bottom of the market, BUT we don't want to rush into buying now). We want to stay in our next house for 20/30+ years...

The property market is very unpredictable and risky, but small, fairly short-term development projects seem riskier than most other things at the moment...

QT

PThomas_2

poppysarah wrote: »

You've got to sell the house first

Why not rent for a while?

I am not too concerned about selling, the house is in a desirable location, quiet cul-de-sac and of a good size. All roms refurboshed (only 1989 house anyway!) Kitchen is a very big selling point as well as lots of open plan living area.

I can afford to drop the price so I know it will sell in a 6 month period once advertised.

PThomas_2

I may have option of moving in with my new girlfriend but unfortunately her house isn't really big enough for my 2 kids to visit every weekend.... but I guess we may be able to make do for a few months or as suggested rent somewhere.

Doozergirl

Which part of Worcestershire? It's very much my area - if there's something good out there I'll find it!

Is that your budget? 150-200k? How much will you have to spend on the property, over what period of time? Extending a house is the only real way to improve value unless you can buy very cheap - both would be preferable!

poppysarah

Do you have property bee installed? There's a lot of overpriced property down there.