Ok, at the moment i have a low wage job which pays £800 a month! Which is hardly enough to live on. I have been intrested in property developing for about a year, and would love to start doing it.
Only problem is, i have absolutly no savings or spare cash. I have a partner who is on around about the same wages as me who i could share a morgage with.
I have been doing alot of research into house prices in my area and have bought loads of books on the subject. What i hope to do is, buy a house at auction for between £20k and £40k then do it up and sell for a profit.
Could i do this with only a deposit of say under £5k?
Do morgages give you aditional cash for renovation or just the value of the house?
If this is possible for me to do then some advise on how to get started would much be appreciated.
Giving someone advice which is hard-nosed is always difficult especially as enthusiasm is a motivating factor when applying yourself to any project but I have to say in your case from what you are saying I would drop all idea's of Renovating Houses for the time being. You have no spare cash or savings for the Renovation, it takes a lot of ready cash to pay to have things done to completion. Mortgages do not cover your Renovation costs and it is unlikely you would get a mortgage on a renovation project anyway.The Surveyor would mark it down in his recommendations of whether to approve your application or not. Your gross Salary would not produce a large amount of money for a mortgage in the first place and you will find that Mortgage Companies won't take you on as a Borrower. Your best bet is to find someone who would financially back you on your proposed renovation property for a share of the profits.This way you would learn the business and perhaps make a bit of money for your next project.
Ok thanks for your advise. But i dont want to drop the idea just yet because i will be in the same situation all my life. I will never have money or any savings.
Would something like this work, if i tried my best and convinced my grandmother to remorgage her house to loan me the money i need, and payoff the morgage for her.
Have you thought about going to evening classes at your local college, they may have some plumbing/electrican/building/woodword course so that you can get an idea if you like the trade.
If this goes will, you could then approach some local charities in your area who have a "fix-it" dept, i.e. voluntiers who go out and help other who have money difficulties
This could give you the experience you after. Have a look in your local yellow pages for charities in your area
If you aren't prepared to learn basic plumbing/electrical/carpentry skills then how do you prepose to make a living renovating property? Even the divine Sarah Beeny can plumb a radiator and used to do a lot of this kind of stuff when she stared out.
Sway, a lot will depend on how much you can do yourself. How much experience do you have ? We started on this 32 years ago, and bought an old place that needed doing up.This meant living in the house while we carried out the work. We did all the work ourselves, and sold for a nice profit after 3 years. However, it meant working all the spare hours , and having no money for anything else. I have to add that I was working in the building trade as well, so had access to expertise and reliable suppliers. If you don't have the experience or contacts, I'm afraid you'll be at the mercy of those you bring in to do the work, which will mean you'll be doing little not very often as you save for each job as you go along. However, if you don't mind slumming it in order to get your foot on the ladder, and you're obviously enthusiastic , I wish you the best of luck.
Im willing to learn Basic skills but theres no point if i'll never be able to get a house to renovate. And i do know alot of people who are skilled in those things.
In reply to Mr P, i am willing to devote all my spare time and money to the project, and if i did, and also 'slum it' it wouldn't be much different to my current situation.
Kudos for you for being willing to learn & put in the work! I know the property market looks daunting at the moment, but by any reckoning it is at the peak and will become more realistic over the next few years. If you learn those skills & practice them on relatives/friends for a few years then you will be in a good position to realise your dream.
Ok, say i waited a year to 2 years till i start, will the value of houses still be like they are now? And how much would you recommend me trying to save up to get me started.
In reply to Northlondon and tiny tears, ive noticed all other replies are of good use and have good advise. The forum is for sharing knowledge and experence, not for replies like yours, if you had nothing of intrest to say, then you shouldn't have bothered wasting your time.
Before you criticise me, try learning the difference between 'advise' and 'advice'. I post on here regularly and like to think that I "pay forward" the great help I have received here over the last couple of years. However, I am incredulous that anyone with no money, and no desire to learn the required skills, can seriously be contemplating a career in renovation. It's been said on here many times before, but I'll reitterate, that some of these tv programmes have a lot to answer for in making people believe that it's a get rich quick market.
Ok, try reading ALL posts before commenting as, you have wrote 'no desire to learn the required skills' if you read it properly then you will see that i am willing to learn the required skills.
Im willing to learn Basic skills but theres no point if i'll never be able to get a house to renovate. And i do know alot of people who are skilled in those things.
A little harsh I think people Sway - it will be years & years but eventually the property market will return to sanity - demographics will see to that. Meantime save & learn!! Luck.
