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Investing in property using equity from existing property
Comments
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need_an_answer wrote: »We all love a pipe dream....
That we do. We’ve all gotta start from somewhere0 -
Start saving rather than thinking about it...
Your opening post asked advice appreciated.Thats my advice to you.in S 38 T 2 F 50
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need_an_answer wrote: »Start saving rather than thinking about it...
Your opening post asked advice appreciated.Thats my advice to you.
Thanks. I will post in 12-18 months and let you know if it all worked out ::beer:0 -
need_an_answer wrote: »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...
If, as you point out, the OP has no money for refurbishment, then best not to buy a property that needs a load of money spent on it, eh?
Lots of properties ready to move into listed
Or perhaps, as the OP said from the start, they will save up before investing...0 -
FestiveJoy wrote: »If, as you point out, the OP has no money for refurbishment, then best not to buy a property that needs a load of money spent on it, eh?
Lots of properties ready to move into listed
Or perhaps, as the OP said from the start, they will save up before investing...
Its unclear if the OP really wants something "ready to move into".
As the thread has progressed they seem to be more inclined to want something to refurb rather than BTL or rent out.
The 2 scenarios are completely different and whilst you can generate income hopefully from both ways the incentives to do so nowadays have become very restricted.
Saving is key and until the OP has some the reality is the thoughts in the opening post are very aspirational rather than in a near grasp even within a yearin S 38 T 2 F 50
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OP... how did you arrive at the valuation of £165-£170k for your current property?in S 38 T 2 F 50
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need_an_answer wrote: »OP... how did you arrive at the valuation of £165-£170k for your current property?
2 seperate estate agent valuations approx 6 month ago and previous sales in the street/area. To be fair it’s probably valued a little higher now0 -
An estate agent valuation is a little different to a mortgage valuation or the valuation when applying for a further advance.
If your property has genuinely risen in price in the last 6 months I doubt it will make a considerable difference in its worth now.Rises have not been huge unless you have had extensive building work completed that increases the footprint or size of the propertyin S 38 T 2 F 50
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OP, you have the seedlings of a plan and being in the trades yourself is a big big plus.
As you have suggested, in your place I would try out a buy BMV-refurbish-sell first. [STRIKE]With the house-prices you are looking at, any CGT liability is unlikely.[/STRIKE] The "profit" could be subject to income tax.
My only suggestion with regard to releasing equity from your current property is to at least consult with a whole of market broker to see what your options are.
Good luck and do update the thread when you get started!0 -
Retired_Mortgage_Adviser wrote: »OP, you have the seedlings of a plan and being in the trades yourself is a big big plus.
As you have suggested, in your place I would try out a buy BMV-refurbish-sell first. With the house-prices you are looking at, any CGT liability is unlikely.
My only suggestion with regard to releasing equity from your current property is to at least consult with a whole of market broker to see what your options are.
Good luck and do update the thread when you get started!
Buying property to do up and sell on attracts income tax not CGT.0
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