I've made £40k - what do I do????

moyville

I bought my house late 90's, a new estate went up across the road and the house prices went through the roof. It was a total fluke.

When it's sold I'll make £40k profit..... problem is, I haven't a clue what to do next. Here are my options [as I see them]:

1. Use all this profit as a deposit to move into a bigger house

2. Use 50% of the £40k for a deposit on a new house, purchase another house for Buy-To-Let with the rest [I don't even know whether this is possible]

3. Take out a remortgage on the current house, take the £40k and spend £20k as deposit on a new house, £20k for a BTL house, and rent out the original house. [Again, I don't know whether this is possible!!]. This way I end up with a new house and two BTL houses.

Any suggestions? a) I'd like to move into a bigger house, b) I'd like to become a property entrepreneur.

kingkano

remember, you made a big profit on this house but any future houses have also gone up by a similar level.....

Gorgeous_George

You can do both if the numbers stack up and you earn enough.

With BTL it is vital that you earn more in rent than you pay out in mortgage payments/decorating etc., and accounting for any voids. Consider this against the likely fall/rise in property value during the letting period and BTL should pay for itself.

Having sustainable BTL mortgages should not impact your ability to raise funds for your residential property other than the obvious use of the 'equity'.

Be careful though. Despite recent trends, property can fall in value (even over a million-year period. However, likelihood decreases with time).



GG

A_Fool_&_His_Borrowed_Mon

moyville wrote: »

This way I end up with a new house and two BTL houses.
..........
Any suggestions? ,................

b) I'd like to become a property entrepreneur.

Is there anyone left in the UK who doesn't want to be a "Property Entrepreneur"?

Let the picture below explain what that means.....

Romani_Ite_Domum

A_Fool_&_His_Borrowed_Mon wrote: »

Is there anyone left in the UK who doesn't want to be a "Property Entrepreneur"?

Let the picture below explain what that means.....

Love it :rotfl:

btloptingout

A_Fool_&_His_Borrowed_Mon wrote: »

Is there anyone left in the UK who doesn't want to be a "Property Entrepreneur"?

Let the picture below explain what that means.....

That's pure genius!

:j

horace_2

Hello moyville,

I have always thought that your postings to MSE have been inspirational and I am sure that others, like me, look forward to your imput.

But BEWARE. I am your only true friend (always have been) but others on this site are of the fair weather friends. So between old friends can I profer some financial advice?

The £40,000 burning a hole in your pocket can be put to better use !!! Just wrap it in plain brown paper and post it to me ( I will pm the address) and I promise to [STRIKE]double[/STRIKE] no triple your investment in 24 hours.

moyville, if anyone on this site suggests they can do better than that ignore them because they are simply in it for themselves. Trust me I am your best friend as you know. You will have untold wealth if you post the £40K to me post haste.

From your bestest friend

horace

horace_2

My dearest, dearest friend moyville,

Silly,silly me !!!

Did I say I could triple your £40,000 in 24 hours? Silly me. I meant quadruple it in 30 minutes. But act quickly. Wrap the dosh up post haste and bung it in the post.

from your bestest loyal friend

horace xxxx

litaus

BTL these days is (or should be) only for cash buyers. Yields are too low and voids too high to make money from the cashflow if you borrow and prices aren't rising in most areas IMHO (Northern Ireland and prime bits of London excepted) so you aren't likely to make money from capital gains.

If you want to invest some in an area other than housing, index linked bonds (pay RPI+x.x%) or ETFs (exchange traded funds, a sort of unit trust) are both good investments.

horace_2

moyville my dearest friend !!

What did I say?? Don`t trust anyone. Why, within minutes of my warning `litaus` suggests investing
quote
`If you want to invest some in an area other than housing, index linked bonds (pay RPI+x.x%) or ETFs (exchange traded funds, a sort of unit trust) are both good investments.
unquote.

moyville, my old buddy, wrap the dosh up and post it to me. I will take good care of it for you.

from your dearest friend

horace

xx

btloptingout

Moyville

Everyone wants to be your friend,
- dot.com entrepreneurs
- Overseas property developers
- Pinstripe Ostrich "farmers".
- Land banking clubs

but horace is right, he will take good care of it.

Horace: 50/50 ok?