Help needed in buying & selling a house quickly

xblade13

Hi guys

I wonder if anybody out there can give me some advice?
It may not be to everyone`s liking but I am unsure of the law and how these things work.
I have a chance of buying a vacant (boarded up) house very cheaply and the only reason I would buy it would be to sell it on for a small profit as quickly as possible.
The main things I need help with are:

Is there a minimum length of time you can own a house? Basically if i could buy and sell it in the same day/week then that is what I would do.

I would be paying cach for the house so no mortgage/loan would be needed.
I am on incapacity benefit and don`t work due to an accident at work some six years ago.
My wife is an unpaid carer for my mother and as our 22 year old son who suffers from Asperger`s Syndrome and ASD.
We have no substantial savings but I just think that this oppertunity is too good to pass up but need help with the above...
I don`t want to break any laws or anything like that but am I ok to purchase a house and sell it on pretty much immediately for a small profit, without being penalised for it by whoever?

If it was a quick turnover are there any hidden fees that I would be expected to pay, IE council tax/water rates anything basically?

I really don`t know so any and all help is really greatly appreciated.

Thanks ever so much for your help..

All the very best

Chris

hellokitty08

I thought some one said 6 months!

devotee

I'm not sure how long you need to own it, but you would be charged tax on profit if it's not your main residence. Someone else with better knowledge here will know for sure.

hazyjo

Properties that are cheap are generally cheap for a reason. Would you be getting a survey done before buying it?

What happens if you're unable to sell it? What if you're stuck with it for a year? (along with all the expenses that go with owning a house)

Pretty sure if someone needs a mortgage on it, they won't be able to get one until you've owned it for 6-12 months. If you're not going to do it up though and just sell it on, you'll probably have to sell to a cash buyer though, which might mean auction would be the best option...

Am sure there's lots else to consider and others will probably add their comments.

Jx

00ec25

hellokitty08 wrote: »

I thought some one said 6 months!

I think that is only where you need a mortgage - but the OP says they would not need one

as for the OP given your intention then the "small" profit would be subject to Income Tax as you are purchasing with the express intention of selling on, ie you are "trading" , so it would not be a capital gain tax item.

I have no idea how it would affect your benefits, however, clearly you have enough savings to afford this

as for council tax etc then yes you would be liable for however long you are legally its owner; it is, strictly speaking, a daily charge

sonastin

Some mortgage lenders won't lend if the person selling the house hasn't owned it for 6 months, so you might find you can only sell to a cash buyer before the 6 month period is up. You might be entitled to an exemption for council tax for up to 6 months but once the exemption expires, you will have liabilty for council tax. You might be entitled to a "second home" discount but the scale of that depends on your local council. If there is (or you get) a water meter fitted, you're not likely to incur much by way of water rates but if it is on rateable value, you will unless you get the water switched off - not sure how easy that is.

Are you sure there is profit to be made here? In buying you will incur solicitors fees. In selling you will incur solicitors and most probably estate agents fees. These can be as much as a few £k. It is not a particularly buoyant market at the moment in most of the country and anyone looking at a fixer-upper is going to be expecting a bargain, cash buyers even more so. You risk finding yourself stuck owning this house for more than 6 months and only making enough "profit" to cover the cost of buying and selling on.

googler

sonastin wrote: »

Some mortgage lenders won't lend if the person selling the house hasn't owned it for 6 months, so you might find you can only sell to a cash buyer before the 6 month period is up. ....

Exactly what I was going to say. There's no law that says you have to keep it for 6 months, but if no-one can buy it from you within that time, where does that leave you?

Southend1

xblade13 wrote: »

I would be paying cach for the house so no mortgage/loan would be needed.
I am on incapacity benefit and don`t work due to an accident at work some six years ago.

You should probably check if there are any implications regarding the entitlement to benefits you receive.

Voyager2002

Do you have a buyer? What makes you believe that you would be better at selling it than the present owner?

twirlypinky

how are you going to do it up enough to make a profit in ONE day? Bearing in mind you're incapacitated?

Are you insane? Are you on that 60 minute make over programme?

Flat_Eric

xblade13 wrote: »

Hi guys

I wonder if anybody out there can give me some advice?
It may not be to everyone`s liking but I am unsure of the law and how these things work.
I have a chance of buying a vacant (boarded up) house very cheaply and the only reason I would buy it would be to sell it on for a small profit as quickly as possible.
The main things I need help with are:

Is there a minimum length of time you can own a house? Basically if i could buy and sell it in the same day/week then that is what I would do.

I would be paying cach for the house so no mortgage/loan would be needed.
I am on incapacity benefit and don`t work due to an accident at work some six years ago.
My wife is an unpaid carer for my mother and as our 22 year old son who suffers from Asperger`s Syndrome and ASD.
We have no substantial savings but I just think that this oppertunity is too good to pass up but need help with the above...
I don`t want to break any laws or anything like that but am I ok to purchase a house and sell it on pretty much immediately for a small profit, without being penalised for it by whoever?

If it was a quick turnover are there any hidden fees that I would be expected to pay, IE council tax/water rates anything basically?

I really don`t know so any and all help is really greatly appreciated.

Thanks ever so much for your help..

All the very best

Chris

Don't forget to factor in legal fees both for your purchase of the property and for the sale. Do you have a buyer lined up ?