Buying a Council House........

jeec_2

Hi,

I have been looking at buying a property with my friend, we are young and new to this. We have 25,000 deposit, and we can comfortably afford repayments of up to 1000 a month. We want to buy a property that needs a litttle work, then hold it for a while, until we have paid of enough of the deposit, that we can change the mortgage to buy to let, then hopefully let the property out. (or sell it on at a profit)

We have found a 2 bedroom, semi detatched for 80,000, it is a re possession. It needs work, hasnt been on the market long, and seems to be ideal, New fitted kitchen,. Does this seem like a good starting point? Just want to make sure were not missing any big mistakes that we could potentially be making?

Thanks for your help!

securityman

yes.......

Soot2006

Sounds OK. Obviously survey will tell you more.
As it's a Repo please remember they HAVE to advertise for the highest bidder, so only proceed if you're fairly confident that no one would offer more on this house or if you're OK with risking money on survey, etc ...

Nosht

Buying with a friend, can you trust him/her?
Is this a business or not?
Do you need a formal partnership agreement?



Regards,



N.

brightonman123

damn you 'developers'- homes are for people, not profit!

jeec_2

Sorry, but this is a buying renting and selling houses forum, so I thought id ask!

Pee

Buying with a friend can have problems. What happens when your friend loses their job, decides to go travelling around the world, gets married, has children, gets ill or even dies. And your friend needs to know what happens if any of these things happen to you.

You are doing up a property for a buy to let? Whilst this is a nice idea, how do properties usually look at the end of a tenancy? Like they need doing up if you wanted to sell.

For this to work there needs to be a greater demand for tenants or an increase in house prices in the next two years. There might be. There might not be.

jeec_2

Fair comments, howver the work that needs to be done is cosmetic, i.e. a little plastering, and paiting, Both myself and my partner, can afford payments on our own, should something bad happen. Obviously we would get correct contacts. Take on board what your saying though.
The estate agent that showed us round, said that if the house was on open market it would be up for £99950, Is this a valid point, or would she say that to enhacne the sale?

Thanks