Renovations

gryphon

Renovations I don’t know if this is the page to discus this, let me know if there is any other forums relating to this.

Anyway the route I want do go down to become mortgage free is the house renovation route.

I hope to buy my first renovation project this year, while still living in my current property. Initially I was thinking of 3 projects every two years, ideally I would like to attempt two a year
I currently owe £70 000 on a property worth about £140 000, to get my first project off the ground I will probably have to borrow, I will be putting about £30 000 into the project.
Has anybody gone down this road, if so any pointers on finance.

crazyscientist

Make sure you choose your property carefully. Major renovations can cost megabucks but increase property prices significantly. Minor renovations obvisouly cost less but be careful - there's always a 'ceiling' price for a property and there comes a stage when no more tins of magnolia will push it higher!!

Be aware of how much work you can do yourself. Are you DIY savy? Do you have friends/family to help? Are you fitting it around a job? If not then tradesmen cost a lot & always take longer than they estimate!

Budget carefully - and don't forget to include all the mortgage payments you'll have to pay during the renovation time plus plenty of 'emergency' funds. Also dont forgot all the fees and costs involved with the purchase and sale.

kar

I think you would have to pay capital gains tax when you sell the property too as it isn't your main residence. Not 100% sure on this but think i've read something about that somewhere on here.