I know what I want to do..

lucylema

... be a property person!

there is just the slightly small (actually huge) issue with finding the money to do it.

I have been watching way to much homes under the hammer! I would love to have a second property which I could rent out and become a landlady.

Trouble is where do I find the money from. My wages are around 600 per month give or take (new job) and we want to plough that into the mortgage we have.

Wondered if I could start small with a holiday place like a caravan or something in skegvegas, would that be a plan??

GavB79

The best plan, is to start watching different programmes

mrsyardbroom

Wondered if I could start small with a holiday place like a caravan or something

In Cornwall it costs an arm and a leg to pay the site fees for caravans. Most sites will only take newer vans and they charge thousands to site them initially. Then you have to pay a lot in fees to keep a van there. You also have to kit it out and either pay for cleaning or clean it yourself between lets. You can come badly unstuck with this kind of thing so do plenty of research before going down this road. If you do find a site make sure it's going to be long term and isn't going to close down or replace all the vans with chalets (this happened to a friend and she lost thousands).
How about increasing your current borrowing to pay for a run down property that you can improve? An auction is a good bet and you can do plenty of research to find out what this type of place is going for?

lincroft1710

Looking at some classified ads in a 50 year old caravan magazine, owning several holiday caravans and renting them out must have been a profitable business at one time. In the back of my mind I have the figure of £25 per annum site rent my grandparents paid for their caravan in the late 1950s. Put a couple of noughts on that and you may be getting near current figures.

Apart from some "free van, just pay site fees" offers, you'd be lucky to find a van for sale which can stay on site for less than £5K. So to buy and pay site fees for 1st year is more than your salary. If you sublet via the site owners you'll have to pay commission, if not you have advertising costs.

Just forget this.

olias

Almost all sites these days do not allow subletting unless it's done through the site owners who will then take most of the money for their 'fees', 'expenses', and 'commision'. They will still, however charge you the full whack for site fees (anything from £1000 to £3500), Oh, and you will also only be allowed to sell through them when you want rid (again, with them taking their 'fees', 'expenses', and 'commision'. Most sites are going over to the 'nearly new' system, where you have to replace your van with a new one every ten years at a cost of anything from £15,000 to £50,000.

As a previous poster has said, until you have a better income and maybe £50,000 to £100,000 spare available to invest, and they bring back lie to buy mortgages, then start watching different programs.

Sorry, but thats the reality!

Olias

LilahDavies

I would suggest that you work out how much you could afford to spend on a second mortgage and get an actual budget before you go any further.
Once you know what you can afford you could look at this realistically. I know plenty of people who have done it by purchasing run down houses in slightly less desirable areas when they go to auction. They then do up the houses in their spare time and sell on for a small profit or rent out to pay off the mortgage and keep going from there.
Don't give up though - it's great that you've figured out what you want to do! Best of luck with it!