Investing in property using equity from existing property

Ry12335

Lover_of_Lycra wrote: »

Once tarted up how much do you expect to sell the property for? What’s the ceiling price for a property of the type you will buy in the street you will buy?

Il be looking at each possible property individually as profit margins are gonna vary property to property

need_an_answer

Ry12335 wrote: »

Il be looking at each possible property individually as profit margins are gonna vary property to property

so have you got an example of the type of property you are considering?

Ry12335

need_an_answer wrote: »

OK getting friends and family to do the work is always helpful but they don't buy the new kitchen,carpets,pastering,electrics,decorating,bathroom ,heating,plumbing etc....

Lovely to hear that you'll have £8k savings next year...just don't understand if its that easy to save the best part of £700 per month on the 2 salaries you've quoted then why didn't you save £8k this year?

I've been known to pick up a paintbrush too...but as an established LL I also know you need a little more behind you than you your current business plan might suggest.

I obviously know all you have stated is not gonna magically appear from friends and family ? I have said Im looking to invest in a property and their will be a budget.

I have saved but I have also spent a lot on my own property. I also receive a monthly productivity bonus.

Cakeguts

I am a landlord with properties in the north west and there is no way that I would buy a cheap house there to let. The kind of tenants you are going to get are going to be a full time job to deal with. You have to remember that a property costing what you want to pay is not going to be the kind that a first time buyer would want it will only be bought by a landlord so when you come to sell you will only be able to sell to another landlord. Work out how much a landlord would be prepared to pay for it and you will see how little you can afford to spend on it.

Ry12335

Cakeguts wrote: »

I am a landlord with properties in the north west and there is no way that I would buy a cheap house there to let. The kind of tenants you are going to get are going to be a full time job to deal with. You have to remember that a property costing what you want to pay is not going to be the kind that a first time buyer would want it will only be bought by a landlord so when you come to sell you will only be able to sell to another landlord. Work out how much a landlord would be prepared to pay for it and you will see how little you can afford to spend on it.

I would be leaning away from buy to let as much as possible for this reason. Thanks for the reply

need_an_answer

but my point is you have not got any savings to date.

You may well get bonus payments,you may well be able to save some of your salary,but to date you have always found something else to spend it on!

Otherwise you would have some healthy savings going into this rather than the potential to save £8k and clear your outstanding debts.

You don't have those savings until they are in an account and a mortgage company will pick over your finances with a fine tooth comb when you submit a full application rather than just going to an online generic calculator.

If you head on with this project, either with a view to sell the renovated property,my gut feeling is that any "profit" from it will be simply eaten up by the running costs whilst you are trying to sell and the fees involved in selling it.
If you opt for the rental market you simply don't have the slush fund to deal with voids,repairs,LL obligations and tenant maintenance.

FestiveJoy

need_an_answer wrote: »

so have you got an example of the type of property you are considering?

Several examples here:

https://www.zoopla.co.uk/for-sale/houses/durham/?is_auction=false&is_retirement_home=false&price_max=50000&price_min=30000&q=Durham%2C%20C%20%20ount%20%20y%20Durham&radius=40&results_sort=highest_price&search_source=refine

need_an_answer

FestiveJoy wrote: »

Several examples here:

https://www.zoopla.co.uk/for-sale/property/durham/?is_auction=false&is_retirement_home=false&is_shared_ownership=false&price_max=45000&q=Durham%2C%20County%20Durham&radius=40&results_sort=newest_listings&search_source=for-sale

Thank you for the examples...it would have been nice if the OP were to have given something simply because using the examples you have given we have no idea if this is within a reasonable distance t where the OP intends to purchase.

when you embark on a refurb,its a good idea for it not to be more than an hour travelling distance...simply because the friends and family and even the OP get fed up of travelling there to renovate it day in day out.

SO again if the OP would like to give an example...

Ry12335

need_an_answer wrote: »

but my point is you have not got any savings to date.

You may well get bonus payments,you may well be able to save some of your salary,but to date you have always found something else to spend it on!

Otherwise you would have some healthy savings going into this rather than the potential to save £8k and clear your outstanding debts.

You don't have those savings until they are in an account and a mortgage company will pick over your finances with a fine tooth comb when you submit a full application rather than just going to an online generic calculator.

If you head on with this project, either with a view to sell the renovated property,my gut feeling is that any "profit" from it will be simply eaten up by the running costs whilst you are trying to sell and the fees involved in selling it.
If you opt for the rental market you simply don't have the slush fund to deal with voids,repairs,LL obligations and tenant maintenance.

Quote me if I’m wrong but I did say this will before a future investment possibly this time next year. If for any reason I don’t manage to save any money I won’t be buying any property.

need_an_answer

We all love a pipe dream....