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FTB - Buy off plan?

Hi guys,

I have been reading up on buying off plan and then selling the property once the build is complete. It seems that if you can find the right location then there is a profit to be made from doing this.

As always there seems to mixed opinions on this as there are lots of variables to consider.

My situation at the minute is this:
I currently live with my parents and have 20-30k to play with, I am interested in putting this money into property purely to make some money. I have no intention in living in any property I purchase at the minute.

Buy to let seems a dead market, so buying off plan seems a good option. Anybody got any opinions on this or any advice on what road to take?

I realise this will open a can of worms for some people, but any advice appreciated.

Thanks

Bren

Comments

  • BettiePage
    BettiePage Posts: 4,627 Forumite
    It's called flipping and it's past it's heyday now.
    Illegitimi non carborundum.
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    Is this your own idea, or did someone suggest it to you?

    If this isn't a wind-up and you indeed are serious, then losing your entire 20-30K is more likely than making a profit. You're roughly two years too late.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • wardlaw
    wardlaw Posts: 124 Forumite
    You can buy off plan with up to a 20% discount An example

    Valuation £100,000.00
    20% discount £80,000.00
    Obtain a BTL mortgage @85% of Valuation

    MORTGAGE £85,000.000
    CASHBACK £5,000.00M

    You do a bridge/purchase simultaniously
    I am a Mortgage Adviser



    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • bren.wright
    bren.wright Posts: 12 Forumite
    No this is not a wind up. There is obviously a lot of knowledge on this forum and I am trying to get the best from it!

    Obviously there is not as much money doing this as there was two years ago. But I fail to see how you would lose the money? In some areas of the uk prices might have dropped but around my area they are still rising.
  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    No this is not a wind up. There is obviously a lot of knowledge on this forum and I am trying to get the best from it!

    Obviously there is not as much money doing this as there was two years ago. But I fail to see how you would lose the money? In some areas of the uk prices might have dropped but around my area they are still rising.

    So what area is it then?!
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • m00m00
    m00m00 Posts: 1,755 Forumite
    the problem is new build properties are generally overpriced compared to the market, and tend to actually lose money when initially purchased, vs other property. You would lose the money if housing prices start to decline, or you cannot get the rent revenue. Just because house prices are not yet dropping in your area is no way of saying they will never drop.
    It's a health benefit ...
  • I nearly did this once at the ideal home exhibition. The plans were amazing and I totally got carried away with the sales pitch it seemed to good to be true......... It was I found out before parting with any money, it was on a flood plain!!!!!

    Be careful bren,

    Shaz
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