Property investment tips...help pls

jodiewright

Hello,

I have £30,000 to invest due to my mum passing away and Ireally need advice.

My mum and I planned to invest money in property to buy andsell on so I’d really like to go down this path but I keep thinking I shouldpossibly invest it in starting a business or buying a franchise. I want to provide for my families future and wantto make the right decision and would love some advice. I also have £50,000 profit tied up in myhouse too.

My brothers have received the same amount and they are alsointerested in investing it in property.

We have the necessary skills, i.e. I’m in business, my dadsa builder, one brother in a plasterer, my husband is a gardener, the other brotheris in internal construction and I can do tiling, floor laying etc etc.

I want to make my mum proud, she was only 55yrs old and passedaway a couple of months ago so I need to focus on something.

Does anyone have any good advice for me?

Jodie

googler

If you buy to 'do up' and sell on, are you prepared to take 6 months for each renovation? Because it seems it's very difficult to get buyers (and/or lenders) for properties which have been owned for less than this time.

Would this affect your profit margin?

What will happen if you put all this money into property, and prices go down?

R_P_W

Hi, I have no experience of doing what you suggest in your post.

All I would urge is that don't make any rash decisions. Stick the money in the hightest interest paying savings account you can and then do a LOT of research.

From reading other posts on here it seems to be very very difficult to make any money from property investment at the moment, espcially in the short term. A few years ago it seemed you could but a run down property give it a lick of paint and some new carpets and sell on at a profit and move onto another - dont think this reality exists any more.

When you say £50k deposit of 'profit' in your house, do you mean equity? How have you arrived at that figure?

Not trying to pee on your bonfire here but just that you should be extremely cautious

BitterAndTwisted

Yes, with such a small investment-pot you really need to know what's a knock-down price and worth the risk, time and effort and what is not.

In a rising market people would really have to go out of their way to fail to make a profit. In a falling one, it's not so easy.

In my opinion this is something that should be left to the experts. Also, going into business with family or friends is really damned risky, most especially when there are a number of them. Far too many potential reasons to fall out over it.

jodiewright

Hi Googler, thanks for the advice.

I'm quite level headed and will plan for these things, obviously the longer I keep the property the less money I make.

If prices go down I'll have to rent the property out.

Jodie

jodiewright

Hi R W P, thanks for advice.

I won't be making any rash decisions and I've been looking into this for years and we had planned to start investing a few yrs back but this didn't happen for various reasons. I think for now I'll put the money in high interest accounts as you suggest and put plans in place over the next few months.

Yes, sorry I meant equity as I bought my first house when I was 18 and my mortgage is only £50,000 but worth £180,000 and I only have 10yrs left to pay so I can afford to remortgage and get £50,000 cash.

I've researched and researched and will be very cautious.

Jodie

jodiewright

Hi BitterAndTwisted, thanks for the advice.

I think it's something which I really need to do just to see what happens and in time I could become one the the 'experts'. If I make money then i'll invest it again, if not I know I've still acheived something by doing it.

Agree about the family, maybe I'll rethink this!

Jodie