Stuck at the first hurdle

[peanut]

Hi all!

I'm completely new to property and I would like to make a purchase on a house with the idea of modernising it and selling it on ..

I´m based in London but I would like to use most of the money I have saved with a margin for any hidden cost which may arise.

I have roughly 160k budget but I know there may be hidden costs. I guess I'm asking for a breakdown of cost to consider where and what to buy. I would like to try to buy a property on auction as I understand this is where most development opportunities are found but if if there is anywhere else I can look please give it a shout.

Many thanks

 

[Longterminvestor]

There are some interesting free ebooks on this site:-

Educational Ebooks

Property Investment Strategies, Mindset, Tax, Rental Income Spreadsheets, Buying Overseas, Entrepreneur Top Tips and much more. Learn how to build a holiday let portfolio. Download Now An introduction to the Rent-to-Rent investment strategy. Download NowRead more...

www.propertyforum.com

They might give you some background before you start your journey.

 

[Karen R]

Be aware when buying a property firstly if you are buying in London you are unlikely to find anywhere that would allow £160k to cover the purchase costs and the refurbishment work. If you are using your £160k for the work but planning on using funding to buy the property itself then remember some run down properties will not be mortgageable if they are in a state of disrepair in which case you would be looking at bridging finance as the method of funding and that will be at far higher interest rates and fees than a mortgage so you would need to ensure any value uplift will warrant the level of funding needed. Most lenders will require some evidence of experience in similar projects before they agree to lend to you and if you are new to this you may want to consider that. Auctions can be great places to buy but there are costs associated with buying at auction so do your research with the auction house before working out your budget.

 

[Longterminvestor]

Good point re: renovations and whether they will add value to the property. I recently read an article about zero value properties for mortgage purposes. Very interesting:-

What is a zero value property?

Tens of thousands of properties are valued every year by mortgage lenders. Sometimes it’s for new property purchases and sometimes it’s so the homeowner can remortgage their property

www.readersdigest.co.uk

 

[Mikey20]

Hi all!

I'm completely new to property and I would like to make a purchase on a house with the idea of modernising it and selling it on ..

I´m based in London but I would like to use most of the money I have saved with a margin for any hidden cost which may arise.

I have roughly 160k budget but I know there may be hidden costs. I guess I'm asking for a breakdown of cost to consider where and what to buy. I would like to try to buy a property on auction as I understand this is where most development opportunities are found but if if there is anywhere else I can look please give it a shout.

Many thanks

Were you able to locate the property of your choice within the state budget of $160,000. There always will be hidden costs associated with the real estate. That's the nature of the industry. Do share if you have found the one you are looking for.