But i will be willing to buy property anywhere in the UK thats cheap and has potential. Im obviously a first time buyer, so any real help will be apriciated. Thanks.
2007-10-09 03:08:08 · 5 answers · asked by Y Entrepreneur 2 in Business & Finance ➔ Renting & Real Estate
Be very careful. The real estate market is very cyclical. We've just been through a decade that was very favorable to real estate. The next few years will not be good for real estate.
Take your time and don't jump right in. Do a lot of studying before you put your money on the line.
2007-10-09 03:15:20 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You will struggle by yourself, even with this much capital I am afriad. Not that its impossible, indeed if you are serious about it then you can make a decent living. Things to consider first mind:
* Do you have any practical skills useful for this profession - particularly the trades stuff that you can do yourself to cut down on contractors (plastering, wiring, plumbing etc.)
* Can you plan, project manage and manage budgets?
If the answer to the above is either yes, or you are willing to learn then your big hurdle will be getting financial backing. Your deposit is quite large, but means nothing in the London market. I take your point about buying anywhere, but you need to start close to home to make this practical and somthing you can exit from. Speak to lenders, but I suspect it will be necessary to get someone with assets or a significant income to guarantee any mortgages you need to take out.
If you can overcome this... its probably worth speaking to tradespeople and looking for some better advice. But I would say what you really need to bear in mind is that property development is all about making the maximum return available on a property - which means buy something which has a problem you can fix, and fix it for a sensible target audience. Don't do anything different! A good place to start would be a run down property which requires nothing more significant than a quick modernising.
A note of caution! A lot of the sucess seen in this market has been the result of equity gains rather than significant developers skills. Whilst it is possible to make money from property development in any economic climate, only the very skilled can do it in a property downturn. Whilst the UK housing market is still growing, it does appear to be starting to slow!
If you were looking for equity gains rather than development gains, and were willing to wait / risk - perhaps look at investing in Eastern Europe property?
2007-10-09 11:44:22 · answer #2 · answered by simplesimon 5 · 0⤊ 0⤋
hi there
i was in the same position as you 20 yrs old with £40K TO SPEND - be smart spread your risk , while you are starting out - look at propery hotspots for rental purposes - i.e. like liverpool, i have brought 4 houses/flats with tenants already in there - as there a major redevelopment going on there at the momemnt re. Liverpool becoming the European Capital City... i would not put all you money down on one property or project spread the risk, but investing lets say, £20k of your to buy 2 properties lets say in liverpool to rent out deposit on each would be much less that £10k as the house prices are £50k upwards...... you will then benefit from rental income and capital growth when the redevelopment finishes .... i at present benefit from an additional income of approximately £300 extra on each of the flats.... and will benefit on the capital growth i have had these now for almost 2yrs and will sell when redevelopment is finishes... agents manage them for me as i can afford the commission they take and still make a great profit.... once you have done that .... you can start to make some profit sell a few of your properties and then come closer to home to begin yoru quest as a property developer, there are huge risk, but if you learn frojm the experts who have made their mistakes go to seminars etc...and dont put all yuor eggs in one basket you will be fine, i have been in this game now for 5yrs - still a novice by most peoples standards, am female and do this on my own and have just finished my 4th development - have confidnece in your abilities and the rest will follow - do not keep you eye on the amount of money you can make but more on the amount of money you dont want to loose...
take care
2007-10-12 01:57:46 · answer #3 · answered by Chez 1 · 1⤊ 0⤋
Hard to believe you have managed to earn 50k by age 18 .. even harder to believe you won't be ripped off by the first cowboy to see you coming ...
I suggest you find a partner with some experience eg. in the building trade and put together an agreement before you get sucked in by some con-artist ..
2007-10-09 11:03:29 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
You will not be able to buy anything other than a garage for that money. You will need to borrow more and I suggest you look outside of London in north Kent
2007-10-09 10:16:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋