New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About A week ago 93
A Newbie Investor, who wishes to remain anonymous, has submitted the following and would really appreciate any help and guidance you GOOD Landlords and property people can offer.
“I’m 22 and a joiner/carpenter, I’ve done this since leaving school and love it but. However, recently I was diagnosed with a condition which makes it very hard for me to work for others due to certain working conditions, stress etc. so I am now re-thinking my future and hoping to become a property developer/landlord
I’ve been saving up ever since I started work so that I could get a mortgage, but due to my new circumstances I am now looking at investing my savings into property.
The plan is to find a tired looking terraced house in my local area for around £35,000 and then spend £5,000 on the property refurbishment. I will be able to carry out 80% of the work myself, apart from the plumbing and electrics. I will then start calling on friends and family who are in different trades.
I have saved £15,000 and am planning to spend £4000-5000 on a van and £10,000-11,000 on the property.
That leaves me needing to borrow £30,000.
Where should I look borrow the money from at the best rate?
I would hope to the use the value of this property to then apply for a second mortgage, do you think I should start off with bridging finance?
I also might be able to get the full cash amount from a family member who is keen to invest some money into property. I like the sound of this but it would mean sharing profits, what are your thoughts on this?
Also, I don’t know whether I should aim to then sell or rent the property. I was originally thinking that I would just decide when I get a re valuation of the property and just then weigh up the re sale value against the rental potential. However, after a lot of reading today I have gathered that there are certain tax benefits and pitfalls to both selling and renting.
Also, I know loft conversions don’t really add much value to a property once the labour has been factored in but I’m just wondering if it would be worth me considering a loft conversion if I was to rent so it so it then becomes a cheap three bedroomed property so I can attract the families and hopefully a higher rental value?
I am going to leave it there for now as I realise I’m starting to go on a little, but I have so many things to learn.
Please any useful links and I will study them in detail as I am a total newbie investor and any advice at all will be massively appreciated.
Thanks in advance 🙂
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.