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  1. #1

    First time investor £35k to invest advice needed

    Hey all, hope you are all well

    im a first time investor living in Hertfordshire, worked in IT for 25 years and also a part time car dealer, I have 35k to invest so obviously not a lot of money (I know that)

    i will be looking in the Newcastle area and surrounding places, also Coventry and Middlesbrough, I would be more than happy if I earn 5k ish per property, I'm looking to buy and sell not let them, I'm just deciding do I go and see a few in the area and offer 10k below their asking prices and hope to get lucky selling them for the price they were originally askin (that's what I do in my car dealing) , or do I go to auction and take a chance there ?

    i have a very good builder in place so work wouldn't be a problem but haven't yet decided how to attack it

    any ideas or advice ?

    anyway that's me for now, thanks all for looking

  2. #2
    I'm definitely no expert but - assuming you own your own home - if you take stamp duty into account then it would appear that your margins are going to be very tight.

    I've also been looking in Coventry (and I also worked in IT for many years) and have viewed several properties. One was a 4-bed terraced house priced at 160K, If I'd managed to buy it for 150K my stamp duty liability would have been 3% of 125,000 + 5% of 25,000 = 3,750 + 1,250 = 5000.

    Reselling it for 160K would indeed result in a 5K profit, but once refurb costs, solicitors fees, mortgage fees, etc. are taken into account it would be somewhat less than that. It would only take a slight dip in the market to wipe out any profit. Then again, a slight rise in the market would make it all worthwhile.

    Just my tuppence worth.

  3. #3
    Thanks for your reply, you obviously misread my post mate, I've got 35k total, so looking to buy up north for 25/30k and then sell on after expenses for approx 40k, so no stamp duty or anything like that, hopefully quick flip for a little bit of profit.

  4. #4
    Ah. I didn't misread it. I misinterpreted it. I assumed you would be getting a mortgage because I didn't think it was possible to find a property that cheap in the UK. Wrong! I've just looked at Middlesbrough and there are indeed houses for less that 30K.

  5. #5
    i would still love love your opinion on what you think that I should do, go through estate agents and be cheeky and offer a lot less than askin, or go to auction

  6. #6
    Nationwide have a personal mortgage that has no early repayment charges, no valuation fee, and no setup fee, they do require a 15% deposit for a second purchase. You could, purchase a property for say 60,000. This would require a deposit of 9,000. After all fee's (including mortgage broker of say 400 and 3% stamp duty), you would then have 16.9k left of your 35k to spend on a refurb (if required). This method would likely give you the best chance of a better return of profit. If you were able to do 2 of these, and generate a 15k profit on each one, this would increase your pot to 65k, and then give you the options of the sub 40k properties that require more work etc where you can buy in cash and still have the money to renovate.

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