Quote: (01-30-2017 01:56 PM)Navas Wrote:
Been doing something similar on a smaller scale and also feel like it's something I can do easily and even enjoy, although at this stage I would hate working 100 hours a week for this (did it in the past). Always entertained the idea of mortgage as a way to expand but never had courage to go for it although it's clear that the property would pay off the interest even if it's 14% in some countries. Now hopefully I will make a move.
Also it's a good insight how this could be done abroad with an example of UK.
+1 from me.
@SanMiguel - would also like to hear if you have any experience in investing in property under construction (could be cheaper - low entry costs, possibility of 0% mortgage from developer in some countries, better appreciation and cheaper to renovate in my experience).
Thanks mate - good to see someone else interested in this kind of thing. The 100 hour weeks are very rare and I only put myself through the stress as had tenants wanting to move in asap and paying a decent amount of rent upfront. Financially I'm set up pretty well now so on the next project can give myself more time if I want to, or get more tradesmen in to speed up the renovation.
Mortgages are the only way I could get into this game and at the moment especially are a great way to leverage your cash. Another thing I'm doing is waiting 2 years after purchase, the re-mortgaging at a higher value (which is the 'new' real value due to the amount of work that's been done). This means I can take a large chunk of money out after paying off the old mortgage and use it to invest in something else. Mortgage repayments will go up but not my much so doesn't noticeably affect the net income but keeps the ball rolling for future investments.
I've also thought about investing abroad but for now decided the risk was too high. My houses are all within 5 minutes drive of where I live and that means a lot if there are any issues. Obviously I intend to travel and will be away for months at a time, but still have friends and family here to keep an eye on things. Airbnb is probably where I would look if I did do something though, as that is basically the international version of what I am doing - renting room by room or for shorter periods with higher returns. Would also be nice to have a cool pad in Barcelona or Budapest that you could use whenever you wanted!
As for new-build construction in the UK, a lot of it seems overpriced - where I am I could buy an old 3/4 bed house cheaper than a brand new 1 bed flat. Most new build houses wouldn't really be suitable for the student market due to the areas they put these new estates in - usually on the outskirts of cities, far away from universities or city centres.