Get your money in Bricks and Mortar!!!

Mustbeananswer??

Its an old saying....so at 52 I decided I would.


I cleverly bought a house from (two houses in one) from an auction company for £60,000.Pre the crash it was £140,000.


I have renovated it throughout and run up loans and credit cards of £15,000.I want to clear that expensive credit with a remortgage but no-one will entertain me as I have a fairly low income £17,000 and a fledgling Disco Business which only has accounts for a part year of £3000 profit.(doing better this year).

The house was revalued last month by a local Estate Agent at £110,000.....probably have to sell as the debts are crippling me!!


So back to the Opening Title...money in bricks and mortar.When are the Building Soceities going to relax their grip on lending??I have done really well PURCHASE wise...but it really don't feel like it!!

If house prices don't improve soon are we all going to be slitting our throats??

My Experian score is 961...before you ask!!

myhouse_2

I think your question on building societies relaxing their grip might be misplaced. It was the banks relaxing their grip which caused the problems - there might be a *slight* relaxing of their grip over the next 2 years, but you can expect to need 10% deposit from here on in, based on realistic valuations.

oz0707

If all the crash predictions are right on this forum sell, sit tight and do it again. disco/dj/developer!

PasturesNew

Ah, the full phrase is "get your money in bricks and mortar if you can afford to"

Best thing to do is keep your head down, take in lodgers, squirrel away every penny you can.

You always need to be able to ride out the rough times.

Mustbeananswer??

oz0707 wrote: »

If all the crash predictions are right on this forum sell, sit tight and do it again. disco/dj/developer!

Lost me a bit.......


I have good family which means I can sight tight!!


Is it worh it tho.....???Cash in and rent again???


I can hang on till April and then have one and a half years AUDITED accounts to throw into the mix...does anyone know of a B/S that would accept this for a second occupation??

oz0707

Do you think you can do it again or do you think you got lucky? If you employed some good DIY skills which has saved you some money on renovating, and you can sell for a profit why not do it again? I know a chap who just goes from terrace to terrace. If you have family ie young kids though its not really a good idea. Also his girlfriend gets pretty fed up with moving

HAMISH_MCTAVISH

Mustbeananswer?? wrote: »

Its an old saying....so at 52 I decided I would.


I cleverly bought a house from (two houses in one) from an auction company for £60,000.Pre the crash it was £140,000.


I have renovated it throughout and run up loans and credit cards of £15,000.I want to clear that expensive credit with a remortgage but no-one will entertain me as I have a fairly low income £17,000 and a fledgling Disco Business which only has accounts for a part year of £3000 profit.(doing better this year).

The house was revalued last month by a local Estate Agent at £110,000.....probably have to sell as the debts are crippling me!!


So back to the Opening Title...money in bricks and mortar.When are the Building Soceities going to relax their grip on lending??I have done really well PURCHASE wise...but it really don't feel like it!!

If house prices don't improve soon are we all going to be slitting our throats??

My Experian score is 961...before you ask!!

Sadly for many young FTB's, mortgage rationing is here to stay for a while.

Anyway, as I see it, you have 77K tied up in a house that has been valued at 110K.

You therefore have several choices.

1. Wait until a buyer comes along at close to valuation. This could be next week, or could be in several years.

2. Rent the house, or rooms in it. Bank the income, use it to pay your bills from the renovations in the meantime, and to show the bank your income has increased significantly over the longer run. Remortgage in 6 to 12 months when the bank can see a history of additional income.

3. Sell the house at a discount for a quick sale, say 90% of valuation, bank the 20K or 25K in profits, find another house to do up/flip.

If it were me I'd take option 2.

henpecked1

bad news - FSA consultation on mortgage review. every application will now be income proved and affordability tested. www.fsa.gov.uk

Mustbeananswer??

HAMISH_MCTAVISH wrote: »

2. Rent the house, or rooms in it. Bank the income, use it to pay your bills from the renovations in the meantime, and to show the bank your income has increased significantly over the longer run. Remortgage in 6 to 12 months when the bank can see a history of additional income.

Is the income taxable??I'm already paying two lots of tax....

This is not such a bad idea.I have enough furniture to jag out of here to stay in somewhere temporary.Would the Building Soceities see it as an income and allow me to borrow more!!!


Maybe just a short-term let....would anybody be interested for just six months??Use an Agency??

oz0707

renting is a whole different ball game

Mustbeananswer??

oz0707 wrote: »

Do you think you can do it again or do you think you got lucky? If you employed some good DIY skills which has saved you some money on renovating, and you can sell for a profit why not do it again? I know a chap who just goes from terrace to terrace. If you have family ie young kids though its not really a good idea. Also his girlfriend gets pretty fed up with moving

Yep.....OZ...

I've thought about it.....loads of bargains on mustbesold.com....

However I'm loathed to cash this in with the property sharks!!

I'm on my own....Girlfriend visits at the weekend.Use to moving...its not too much of a problem.Nobodies going to give me 2 mortgages...they won't even give me one fair one!!