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Where to get advice on property development and buy to let our house?
mkbswimstar
Posts: 236 Forumite
Hi, We are looking to move to a new cheaper area and long term plan is to build up a portfolio of let properties riding the potential crashes and in 30 years sit pretty.
We are moving to a cheaper area and giving up our only income but partner wants to so some properties up as well as let some as we need to make a living whilst there.
We have house worth £220k and mtg of £90k, with little savings.
We have done a property up last year and made about 15k, so we were pleased with that as it was only part time.
Where do we get advice on starting up this kind of business and how to finance this kind of idea?
We were originally gonna sell our house and use equity for deposit on 1st property and living expenses for a year, but i think we are mad to sell our house.
What do you guys think?
We are moving to a cheaper area and giving up our only income but partner wants to so some properties up as well as let some as we need to make a living whilst there.
We have house worth £220k and mtg of £90k, with little savings.
We have done a property up last year and made about 15k, so we were pleased with that as it was only part time.
Where do we get advice on starting up this kind of business and how to finance this kind of idea?
We were originally gonna sell our house and use equity for deposit on 1st property and living expenses for a year, but i think we are mad to sell our house.
What do you guys think?
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Comments
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mkbswimstar wrote: »Hi, We are looking to move to a new cheaper area and long term plan is to build up a portfolio of let properties riding the potential crashes and in 30 years sit pretty.
We are moving to a cheaper area and giving up our only income but partner wants to so some properties up as well as let some as we need to make a living whilst there.
We have house worth £220k and mtg of £90k, with little savings.
We have done a property up last year and made about 15k, so we were pleased with that as it was only part time.
Where do we get advice on starting up this kind of business and how to finance this kind of idea?
We were originally gonna sell our house and use equity for deposit on 1st property and living expenses for a year, but i think we are mad to sell our house.
What do you guys think?
I think you're mad in the current climate.
I think the idea is a winning formula. But most investors in all markets have a rule, buy within the bottom 10% and sell within the top 10%.
Have you considered the yields on BTL at the moment?
Done a cash flow forecast?
Factored in the possibility of negative equity for 10 years?
Voids?
If you've done your research and wayed up risk versus reward, then fair play. But the risks in BTL at the moment are HUGE!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
This plan you have for making money is called "flipping". And very popular it is too. Due, in large part, to the popularity of property !!!!!! shows on TV.
However, it is a tricky game to get into as an amateur and you may have left it too late.
For a start, any properties suitable for this type of venture are quickly drying up. They are often bought by builders and developers before they are even marketed.
Secondly it is only very profitable during a rapidly rising market.
Witness the people on said property shows - most of them make their money from house price inflation not their skill at investing or interior design. They could have made just as much by doing nothing.
However those days are fast disappearing.
In the present climate you will need to be very lucky to produce anywhere near as much profit as you think, because prices are starting to stagnate.
Good LuckWhenthemusicstopsmakesureyou'renotleftstanding0 -
You need savings behind you to do this. To buy any property that is not your residence you will need 15% deposit. You will also need money to do the properties up and to be able to afford the mortgages until they are sold.You could increase the mortgage on your home to raise the equity but this is risky. As all the adverts say, your home is at risk if you don't keep up with repayments.........I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Hi
have a look at this web site,its a odd name i know,but its one of the best web sites around i think.
http://www.singingpig.co.uk/forums/
Lee Sharp.............0 -
Hi
have a look at this web site,its a odd name i know,but its one of the best web sites around i think.
http://www.singingpig.co.uk/forums/
Lee Sharp.............
Ahh. The singing pig.
The natural habitat of vultures, thieves and pseudo-businessmen.
And a great place to swap ideas about your latest scamWhenthemusicstopsmakesureyou'renotleftstanding0 -
Hi Sortofok
i take that you are not too fond of pigs then :-) You may be right about them,but still worth a look i think.
Lee Sharp0 -
Are you THE Lee Sharp?0
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I suppose.
Each to their own.
Am I to take it you are a budding entrepeuner my friend?Whenthemusicstopsmakesureyou'renotleftstanding0 -
I suppose.
Each to their own.
Am I to take it you are a budding entrepeuner my friend?
Perhaps property investing?Whenthemusicstopsmakesureyou'renotleftstanding0 -
mr.broderick wrote: »Are you THE Lee Sharp?
Not sure, but I am the Generali.0
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