Buy-to-let or renovate for profit?

Tr1gger

After an amicable separation with the wife I will soon find myself with £37k burning a hole in my pocket with no debt, but also no place to live. I’d like some advice, I’m currently sharing rented accommodation with a mate so have no mortgage. I would like to either invest some of the money into a run down property and tart it up and make a few pound when I come to sell it on, or invest in a buy-to-let property. The sole intention of this investment is when my daughter turns 21 (18 years time) handing over a property which will be fully paid for or handing over a wedge of money to buy a property with.

Can any of you give me advice on what would be the best course of action to invest some of the money to achieve this? I will probably end up taking about £10k out of the £37k to eventually put a deposit down on a flat and so be left with £27k. I have dug about and can get property for approx £90k around the Hospital Area in Sunderland which are very popular with the Nurses as long as you rent out fully furnished, which would get a minimum of £450 up to £550 a month rental income.

I keep seeing that the buy-to-let market is flooded with properties, and can certainly vouch for that with the flats in Sunderland hence why I’m targeting terraced cottages, but I’m swayed to invest in run down properties and do them up with the money I have, I know a lot of tradesmen and fancy giving a lot of the work a go myself.

Any help would be appreciated.

Angela_D_3

Wait until next year and see what happens in spring before pouring your money down the drain. Even kirsty freom location, location, locatio is getting out of property, sarah beeney hasn't bought a house for 3 years, what does that tell you ?

Tr1gger

A very good get out clause is that If I'm still renting with a mate, and can't sell on the renovated property I would move into the property myself until I could sell on?

PoorDave

Angela_D wrote:

Wait until next year and see what happens in spring before pouring your money down the drain. Even kirsty freom location, location, locatio is getting out of property, sarah beeney hasn't bought a house for 3 years, what does that tell you ?

That people on here post things without backing them up with where they got them from because it suits their "house price crash" agenda?

But seriously...

If you're renovating and plan to do work yourself don't forget that it's not always cheaper, as it may take you longer than a trademan, and all the while you're still paying the mortgage. Easy to be keen on doing the work at the beginning of the project, less so on the 14th straight weekend you've had to work on it. Not that i'm bitter!

I would say investing in property at the moment is starting to look a little risky!

Also, if a renovatable property is still around this many years after Property Ladder started on TV, you have to wonder why...

davef

Angela_D wrote:

Wait until next year and see what happens in spring before pouring your money down the drain. Even kirsty freom location, location, locatio is getting out of property, sarah beeney hasn't bought a house for 3 years, what does that tell you ?

Sarah Beeny is making too much money from TV appearances, books etc to stress herself with developing.

Kirsty is leaving TV to become a full time mum.

There is still money in developing if you know what you are doing. Problem is too many buyers with rose tinted glasses.

david29dpo

davef wrote:

Sarah Beeny is making too much money from TV appearances, books etc to stress herself with developing.

Kirsty is leaving TV to become a full time mum.

There is still money in developing if you know what you are doing. Problem is too many buyers with rose tinted glasses.

i agree. i make money in developing, but you need to know what you are doing. borrow as little money as possible and do as much work as possible yourself. the main problem now is finding suitable property, but buy carefully, very carefully. i have just sold my second property this tax year and after a total of four months very hard work, am very happy with the profit.