Property investment advice

Halcyon

Good Afternoon to one and all.

I am new to property investment and wanted to know if there is anyone out there that would be willing to point me in the right direction.

1. How should I get started in the property business?

I have heard investors talking about no money down on properties.

2. How do I buy properties using none of my own money?

Any advice or help will be most gratfully received.

Thanks

Halcyon

pioneer

No money down usually involves buying over valued newbuilds, be careful you are entering a very dangerous area, If it sounds too good to be true ...

specs_3

I would spend six months reading up on the subject first.

You can manipulate things to put no money down, but are still liable for any losses when things go belly-up.

silvercar

singingpig.co.uk is the place for advice on no money down deals.

Idea seems to be to buy for less than market value and remortgage to take out all your purchase costs. Simple on paper less so in practice.

Doozergirl

No money down is often where you buy a new build property and the builder pays your deposit for you basically. It's often offered on apartments but IMO the apartments are only actually worth the price you actually pay, if that(!) so there's no added value in having your deposit paid. I would not invest in new build apartments. There's to many of them and soooo many investor properties. If the market turns, everyone will bail out at the same time and you will be left with something virtually unsellable.

Fact is, the people shouting about how much money they've made did it in a rapidly rising market and most of the success stories are not particularly recent ones. It's easy to brag when you have the benefit of hindsight but property investment is a big risk and should not be taken lightly.

If you are letting it out, you need a decent return on your money and should NEVER expect to pay a bit towards the mortgage each month. In that case you are relying on capital gains only and this is a straightforward gamble. Interest rates rise and you're paying extra on your own mortgage and your investment.

The type of property investment you refer to is the most risky. If you can buy something truly at below market value you have an automatic buffer set in against price falls. That's the way to go.