Want to buy to sell my first property but have no money....Help

tysfoot

no idea what you mean about the sub board. ive just posted a new thread

chappers

When you have found a 20 or even 25% deposit, then you can go waste what precious money you have left.It is possible to even make money developing in a falling market but having a few mates in the building game and doing a bit of P&D and tiling at home is not the experience you need and in the present climate you don't have the housing market to get you out of the 5hit if things go wrong.
If you are serious then get yourself a decent full time job save like crazy, spend your time reading everything you can on property development and wait for more stable times.

maninthestreet

tysfoot wrote: »

why, isnt it worth taking a risk if i have good skills at building and designing property but not good skills in fnancial and and understanding of management.
if buy a property for 100k spend 10k doing it up and sell for 130k.

The reason why say that is because my freind has a house he wants to sell and i have told him iam interested in buying it for 100k. needs work to it. only cosmetic. want to extent the kitchen and garage. my estimation are 10k for the work and about 4 months work.

Easy peasy

or is it. thats what i want to find out

Due to the 'Credit Crunch', no lender will be willing to lend you the 110% of the property price that you require to get this project off the ground.
As others have suggested, you need to start saving. In 2 -3 years time, property prices may well have dropped significantly:

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=555149&in_page_id=1770

mlz1413

instead of posting here why don't you nip down to your bank or local mortgage broker and find out if you can borrow £110k against a purchase of £100k.

If you get the loan then do the place up and pop it on the market for £130k. you may well find after having paid out 6 months interest and having either no buyer or a buyer who pulls out that the house will be worth less than you hope or even paid on it.

Then maybe you might come back here and realise people are saying don't do it for a reason.

BUT it's your choice if you want to do it, don't let anyone here put you
off.

JonnyBravo

tysfoot wrote: »

why, isnt it worth taking a risk if i have good skills at building and designing property but not good skills in fnancial and and understanding of management.
if buy a property for 100k spend 10k doing it up and sell for 130k.

The reason why say that is because my freind has a house he wants to sell and i have told him iam interested in buying it for 100k. needs work to it. only cosmetic. want to extent the kitchen and garage. my estimation are 10k for the work and about 4 months work.

Easy peasy

or is it. thats what i want to find out

All very easy in theory isn't it.

Many problems...... (I'll only go into one)

Number One

Credit Crunch and Lending

You may have heard about it on the news? 100% mortgages are dead. You need a deposit.
You don't have a deposit.
You can progress no further.
Lucky for you eh?

(I don't expect you to understand that last bit)




Do as suggested. Get a job with your building mates and learn some valuable new skills for when you're in a position to realise your dream. (Save the extra money you earn)

tysfoot

So what are all you lot doing then.

Saving like mad or buying and selling like mad

cajef

Of course the way the market is going at the moment it is a brilliant idea to buy a property for £100k spend £10k doing it up, and then find it may only be worth £80k in 6 months time.:rolleyes:

mlz1413

me 25 year fixed rate mortgage means my home is affordable to me for the term of my mortgage.

Bought my house in run down condition with 25% cash and 75% mortgage, did it up as a home and even though it's 'worth' double the mortgage i'm staying put because A) i like it and i can afford it.

jaype

In basic terms, to politely explain why you are getting slightly abrupt responses from people who can't believe you are genuine... The past 10 years when people made money as you suggest (buy house, do it up a bit, bung 10k on the price, sell it and 'kerching', money in the bank) have now come to an abrupt end. The banks believe that houses are overpriced and won't lend anything near 100 per cent of what estate agents say they are worth because they believe the houses are about to drop in value and the banks don't want to be left with people that have mortgages worth more than their houses. So in short, unless you absolutely have to buy a home at the moment, don't go near housing. It may well be about to come down in value and no amount of good tiling will save you if you have to keep cutting the price to get shot of your bad investment. There are times to get into property as a business and this is not one of them.

BargainAholic_2

tysfoot wrote: »

So what are all you lot doing then.

Saving like mad or buying and selling like mad

I saved for my 5% deposit & now I am greatful that I have a roof over my head that I can afford & will be able to afford in the future.

I bought my house last year to have as a home & not to make money out of it.

I make my money by having a job in an office & work damned hard for it too.

If in a few years I decide to relocate back to England & I make money on my house then I will be extremely happy.

BA