purchasing a house to either sell on and rent

markyyyyyy

Hi all,

we are in our 30's and just had an extension on our house so we're content with our home... i've always wanted to purchase a property and either do it up to sell on for a profit, or rent it out. Having not done this before, can i open up a discussion on what you advise, whats best to do? Is it a good market to buy and sell these days? What happens with any profit made? Do i have to declare it on the first house, or is it only if i continue to purchase and do up / sell in the future? Any advice, hints and tips appreciated. Would only be looking at cheaper 2 bed terraced houses to start off! I don't have the funds in savings, as a lot of it has gone, but was thinking of releasing equity in our house - approx 50k equity at the moment.

thanks

middleclassbutpoor

markyyyyyy wrote: »

Hi all,

we are in our 30's and just had an extension on our house so we're content with our home... i've always wanted to purchase a property and either do it up to sell on for a profit, or rent it out. Having not done this before, can i open up a discussion on what you advise, whats best to do? Decide which one you want to do and why you want to do it? You need to consider the pro's and con's of each. Is it a good market to buy and sell these days?You will need to be specific about location - too many variables without doing research What happens with any profit made?It will be the 2nd house but the government wants part of it.. How much depends on what you already give them.. Do i have to declare it on the first house, or is it only if i continue to purchase and do up / sell in the future?You could pay Capital Gains Tax and/or income tax. In addition you will pay an increased rate of stamp duty. Any advice, hints and tips appreciated. Make sure you go into whatever you choose with your eyes wide open. Would only be looking at cheaper 2 bed terraced houses to start off! I don't have the funds in savings, as a lot of it has gone, but was thinking of releasing equity in our house - approx 50k equity at the moment.Its not as simple as saying yes or no - too many variables again... Normally you will look for something that you can add capital value on by renovation if you want to sell for a profit. If you want to be a landlord then you will be looking at yields and other things

thanks

You need to understand that its not a simple question to answer. Would be better to understand what your motivation is and what experience you have in terms of renovations and/or being a landlord..

markyyyyyy

middleclassbutpoor wrote: »

You need to understand that its not a simple question to answer. Would be better to understand what your motivation is and what experience you have in terms of renovations and/or being a landlord..

thanks for your reply.

I would prefer flipping a property, although i will definately look in to both options and consider everything carefully before making any rash decisions.

I am a very competent DIYer, can do plumbing, kitchen fitting, most bits and bobs but i don't touch gas or electrics (obviously!)

Has anyone had experience of buying a property in the region of £60k (some run down areas in Yorkshire have cheap houses) and then selling on for a profit - yes i understand it wouldn't be huge profit but its a start, and a place for me to gain an understanding / experience of renovation.

my ultimate aim is to make money from it - i currently do sports massage as a job and i am conscious that in years time my hands will take a beating so i'm looking at other options to develop. Most of the renovation i will do myself, so cutting labour costs.

G_M

There are plenty of books on the subject.


You can borrow them free from your local library.

csgohan4

Add in homes under the hammer too

dawyldthing

You’ve got to factor in buying and selling costs. If it’s priced for £60k and a lot on the street are the same it could be the ceiling price to be fair.

Renting - you’ve got to factor in voids (mortgage still needs paying), insurance, landlord checks etc. There’s a lot of landlords selling up from what I’ve read as there not a lot of money to make out of it these days

G_M

csgohan4 wrote: »

Add in homes under the hammer too

Come on csgohan4 - OP asked a serious question! OK, he could have found some sources of research for himself but that's no reason to take the p***!

csgohan4

G_M wrote: »

Come on csgohan4 - OP asked a serious question! OK, he could have found some sources of research for himself but that's no reason to take the p***!

Says the person who asked the OP to go read a book in a library when their closed today, Tea and cakes G_M if your paying?

Crashy_Time

G_M wrote: »

Come on csgohan4 - OP asked a serious question! OK, he could have found some sources of research for himself but that's no reason to take the p***!

Well that show and similar used to be gospel to many people, so not really taking the p***? The real joke is that people believed it for so long:rotfl:

G_M

csgohan4 wrote: »

Says the person who asked the OP to go read a book in a library when[STRIKE] their [/STRIKE]they're closed today, Tea and cakes G_M if your paying?

Only if I get to choose the cake!

AdrianC

markyyyyyy wrote: »

i've always wanted to purchase a property and either do it up to sell on for a profit, or rent it out.

Oooookay...


Just... step away from Daytime TV...

Having not done this before, can i open up a discussion on what you advise, whats best to do?

What skills and experience do you have that mean you find the right property for the right price, and add value to it?
Why you, not one of the many professionals out there who already have good contacts with agents for sourcing the right property?
Do you have the time, skills and equipment to do the work yourself? Or the contacts with trades to get it done at a good price on time?

Is it a good market to buy and sell these days?

That largely depends on what sort of property, where in the country.

What happens with any profit made? Do i have to declare it on the first house

Yes. You pay income tax on the profit.

Would only be looking at cheaper 2 bed terraced houses to start off!

A crowded market - ripe with developers, FTB DIYers and BtL landlords.

I don't have the funds in savings, as a lot of it has gone, but was thinking of releasing equity in our house - approx 50k equity at the moment.

You need to make enough profit to cover those finance costs, then, in addition to everything else. And where will you be borrowing the rest of the money from? Because unless you're looking in some godawful parts of some depressed areas, £50k is not going to buy you a 2-bed house AND leave you money for doing the work. If you are in those areas, then you really ARE going to need luck.