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05-25-2015, 11:46 AM
I'm a 19 year old guy, no real idea on how to make money although I've spotted something that I could profit handsomely off.
Me, my mother and my bro live in a council house and have been for 13 years. We have recently got right to buy the property at a hugely discounted rate.
The property is located in East London and house prices are shooting through the roof.
Let's say the property is worth £240000, the council are offering the house out £130000.
I make £18K a year but will be earning more very soon as I've just started a new job. Would it make sense to buy this property, renovate it and sell it/rent it?
As I've never had any experience in this field, would anyone please share how I would go about this?
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05-25-2015, 12:27 PM
Shitty thread title. Clearly describe thread subject in thread title.
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05-25-2015, 12:32 PM
I'm with Basil on this. You're new, so please remember this: if you want guy to take an interest in your thread, then you must make it clear what your thread is about. No harm, no foul, but people will become suspicious of you if you continue to make such vague thread titles.
I am not sure if this is a good idea. It doesn't sound like you'll be able to afford to live there and maintain the property as a 19 year old, or will you live there with your mom? It could be something good to sit on for a bit.
I will be checking my PMs weekly, so you can catch me there. I will not be posting.
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05-25-2015, 01:15 PM
Fortis: apologies for the shitty thread + title. My mother and brother are planning to move abroad this summer around August so I'll be left here alone. Im curious to see how much mortgage payments would be for a £130000 loan.
My question is how much profit Id make.
Could I theoretically buy the house at a reduced rate and then sell it immediately? I could then be sitting on a £100000 gross profit.
Edit: okay no I've just looked it up. If I sell within 5 years I have to pay back the discount. If I sold after 5 years of purchase I can sell it without paying any discounts back. Still 5 years isn't bad + market value will be higher.
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05-25-2015, 01:38 PM
Quote: (05-25-2015 11:46 AM)JamesW95 Wrote:
I'm a 19 year old guy, no real idea on how to make money although I've spotted something that I could profit handsomely off.
As a UK taxpayer who
does know how to make money, all I have to say is this- your welcome
![[Image: rolleyes.gif]](https://rooshvforum.network/images/smilies/rolleyes.gif)
They who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety- Benjamin Franklin, as if you didn't know...
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05-25-2015, 01:40 PM
I work for my money I don't get your point. I didn't ask to be born to a mother who lived in a council house...
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05-25-2015, 03:18 PM
Of course it's a good idea. Some countries offer similar deals and owners can get huge discounts. It's even possible to get a mortgage, renovate the building sensibly and then the rent pays back the mortgage if you cannot or do not want to sell the house.
It's a sweet deal. But remember that doing that does not make you a savvy real estate investor. It's a good deal and you should do it, but prepare it with as much due diligence as possible as to not waste money on the renovation. Also you might check out whether there are any major construction issues with the house that you are not aware of.
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05-25-2015, 05:28 PM
That's what I'm thinking. The average rent price is insane in this area compared to how much a mortgage would cost me. The mortgage would be like 600 a month and I can rent it for £1200.
After 5 years the value will be even higher and I can profit even more. The problem now would be actually obtaining a mortgage as I believe a bank would be reluctant to give a mortgage to a 19 year old on 18k per annum.
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05-25-2015, 09:33 PM
long term, its more than worth it. make sure to discipline yourself to be able to hold on to it for that length of time.
@JamesW95 Do you not have anyone one to cosign a mortgage to you? family I think would be the best option.
Adam says to God, "God, why did you make women so soft ?"
God says, "So that you will like them."
Adam says to God, "God, why did you make women so warm and cuddly?"
God says, "So that you will like them."
Adam says to God, "But, God, why did you make them so stupid?"
God says, "So that they will like you"
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05-26-2015, 02:34 AM
The only people who can consign is whoever is a tenant at the property. So my mum and brother. I don't think they will want to get into a mortgage but we'll see.
In the meantime, I'm going to be increasing my credit via a credit card so that I won't be turned down for a mortgage.
