Good Buy Or Not?

POOL_W1NNER

Hi, im in the process of buying house to sell at a profit after a couple of months

The price it self is 117k the mortgage will be for 100k and the 17k is deposit.
the monthly payments £480

It is a 3 bed mid terraced house.... nearby is the universitey UCE

Their is also a new Tesco being built within walking distance which will open in April is this likely to increase or decrease the value of the property?.

Their is a couple of other properties in the same area on the market ranging from 124k to 130k the reason im getting this price is because its a private sale
thanx.

Phirefly

POOL_W1NNER wrote: »

Hi, im in the process of buying house to sell at a profit after a couple of months

I'm convinced people are registering under pseudonyms to start threads like this so they can come back as themselves and tell the 'OP' what an idiot they are....

If this is a genuine thread, apologies OP.

Jorgan_2

Assuming the property isn't in an exempt area, stamp duty will become payable at the £125k threshold, this will cap what a property will sell for. EA fees, solicitors fees, survey fees, will come in at about £4-5k, so assuming you achieved a figure of £125k you have cleared £120k. Then of course there are the mortgage payments while you are flipping the place over, lets say four months from marketing the property to completion, thats nearly £2k. So now we are down to £118k on this theoretical purchase/sale.

Still think its a good idea?

oldMcDonald

Phirefly wrote: »

I'm convinced people are registering under pseudonyms to start threads like this so they can come back as themselves and tell the 'OP' what an idiot they are....

If this is a genuine thread, apologies OP.

Posted by OP on 28th Jan
http://forums.moneysavingexpert.com/showthread.html?t=709995

Maybe he has got himself into a postion whereby he has to buy the house and is now worried, hoping he will be able to sell it soon and not lose too much money?

Doozergirl

Is this post a joke?

Why would you buy a house for what it's worth, or perhaps very slightly under, and then sell it for what it's worth after having paid out a load of fees? You can't work on margins that small! Presuming you have a mortgage with no tie-ins, you'll be paying quite handsomely for the entry and exit fees. You run a massive risk of making nothing or even losing mney

And it's a cheap house for Birmingham. Not a good area, evidently. Perry Barr, Stechford? Since when did a Tesco do anything to house prices? Especially somewhere which, with prices like that, is not a good area. I don't think Tesco attracts the gentry to suddenly move in!

mpsavuk

POOL_W1NNER wrote: »

Hi, im in the process of buying house to sell at a profit after a couple of months

:rotfl:

POOL_W1NNER

Im backing out after reading your advice i think its best to....i will be losing £700 as have paid mortgage advisor but better than losing £1000s when selling.

although part of me still think its a good buy ....the seller wont be pleased especially as its a private sale.

Jorgan_2

I'm curious, why have you paid £700 to the mortgage advisor?

subjecttocontract

Buying property other than your main home and selling immediately for profit means you have to declare the profit for INCOME TAX at your marginal rate. You may of heard of it before.

Even us experienced developers know that is not the way to do it.

The sensible amongst us buy in joint names with our other halves, at a low price, spend little to nothing on the property, rent it out for 6 or 12 months & then sell so that we are only liable for Capital Gains Tax NOT Income Tax. As we each have a personal allowance of £9200 and CGT is only 18% after April 2008, we have little to no tax to pay.

Don't go into the property business with your eyes closed......at the very least try some self education before you dig a big hole for yourself. Don't become one of this years bankrupts.

macaque_2

POOL_W1NNER wrote: »

Hi, im in the process of buying house to sell at a profit after a couple of months

The price it self is 117k the mortgage will be for 100k and the 17k is deposit.
the monthly payments £480

It is a 3 bed mid terraced house.... nearby is the universitey UCE

Their is also a new Tesco being built within walking distance which will open in April is this likely to increase or decrease the value of the property?.

Their is a couple of other properties in the same area on the market ranging from 124k to 130k the reason im getting this price is because its a private sale
thanx.

When I read you post my little sword turned bright blue.