20k - Investment ideas?

[N10k]

Right.
details:
20k in bank
Living with parents
Dab hand at DIY

So, after selling the house im now moving back in with my parents but im wondering how i can make some cash.

There are a few flats on the market at the moment in may area and there are even less for rent

Is there much money out there buying run down places and selling them for a profit?
id be looking at flats.

Rentals. B2L mortgages look like a pain in the ass. 25% deposit stretches to me being able to afford just 1 at a push. the gains would be about £200 - £300 a month though when a get a tenant

Anyone else been in a position like this?
What would you recommend doing?

[Steamer]

N10k said:

There are a few flats on the market at the moment in may area and there are even less for rent

Really? The cities around me are brimming with unsold new build flats - some have been on the market for well over 12 months. First time buyer / flat selling is not an area I'd like to be getting into at the moment.

I'll be keeping an eye on this thread though as I'm in a similar position. (hopefully it won't be moved over the homes & diy page)

I've not really looked into BTL yet though.

For the short term I've just topped up the premium bonds, they seem to be picking up slightly.

[geeteeaye]

Only problem is that the normal route to do this is to buy at auction, so having the money at hand is much easier, not much fun in buying a property at auction and finding out it's unmortageable for one reason or another! You may find the odd property with agents or being sold privately which need renovation but you're unlikely to have too much of a margin. Other things to consider would be exactly how skilled/qualified are you - plumbing/gas, electrical? When you start paying plumbers/sparks £150/day + parts it soon whittles down the profit.

Personally I'd be having a bit of a flutter on the stock market but definitely not everyones cup of tea! Buy Sony once they bottom out, sure-fire easy money... probably

[DownUnder.]

You won't make any money doing that unless you can afford 5+ properties. My families just got into this and with things like maintenance, plus the fact that people treat rental properties like st, you lose a great deal of your profit through that.

Then theres things like paying a letting agency to manage/advertise your property. I'd really consider taking your 20k elsewhere.

[Zingari]

DownUnder. said:

You won't make any money doing that unless you can afford 5+ properties. My families just got into this and with things like maintenance, plus the fact that people treat rental properties like st, you lose a great deal of your profit through that.

Then theres things like paying a letting agency to manage/advertise your property. I'd really consider taking your 20k elsewhere.

Well said. I looked at buying a place outright and letting it out, but given the very high amounts of (new) empty properties in the same game, the hassle of tenants, fees, maintenance and ultimately 40% tax etc etc to me it was not worth all the bother.

I like access to plenty of folding (although I dont quite know why)and not owing anyone. It's all very well to have several B2L properties but when you do the sums you 'own' fk all as its all in mortgages etc and you walk a tightrope in balancing multi-occupancy with outgoings. Takes years to see a result.

I was going to buy a place in Spain but last year sat on the balcony in the glorious weather and did the sums - worked out I could probably rent it for the annual free time I have available for the next 25 years and let someone else worry about it. Doesn't help that Brits won't accept that their Spanish properties are worth considerably less than what they paid given that the country is on its arse.

I keep getting emails from Insight property telling me of guaranteed rental high yields for 5 years on overseas property - you buy a place for £45k and in 5yrs get half back in rentals - personally this sounds a load of bks to me.

Doesn't float my boat and in the 80s/90s I went the stockmarket route and made some 'modest' tax free returns. Although my wife did convince me to buy her parents a bungalow which I might get some benefit one day....

[dave-therave]

I'd worry about getting my own house to live in before owning one that somebody else lives in.

[N10k]

dave-therave said:

I'd worry about getting my own house to live in before owning one that somebody else lives in.

this is the other side to the story and very much on the route im considering

[Steamer]

N10k said:

dave-therave said:

I'd worry about getting my own house to live in before owning one that somebody else lives in.

this is the other side to the story and very much on the route im considering

Have you thought about killing two birds with one stone? (although it will mean a certain amount of compromise) - buy a house that needs a bit of fixing up but one that could also cater for a lodger (or two). Its probably not going to be your ideal house, and probably not your ideal way of life - but its someone you can keep an eye on (ie: not trashing your BTL house) that will be paying half of your mortgage?

[Kudos]

N10k said:

B2L mortgages look like a pain in the ass. 25% deposit stretches to me being able to afford just 1 at a push. the gains would be about £200 - £300 a month though when a get a tenant

Don't forget about fees - bloody ridiculous at present. I'm out of the game as the figures rarely stack up.

I'm planning on going back to basics - buy properties which I can "add value" to e.g. refurbish or perhaps a cheap reposession

[mak]

Not a great deal of money in the low budget refurb and sell on game, i am a joiner and have just completed my 5th refurb in as many years, i do it to top up my income. Bridging loans are very expensive and BTL are not meant to be used to finance BTS properties. The figures on my last project that completes this friday are as follows.
Purchase price £ 53000
Refurb works £11000
Costs £5k ( all fees)
Sold price £78000
That gives this particular property a £9000 profit before tax.
The turn over is the problem, It takes a month to get the keys after your offer, it takes 2 months to get your money once you have accepted an offer ( that's if it doesnt fall through), 3 months to complete works, lets say 3 months on the market ( if your lucky) that's a total of 9 months before you see a return on a large investment of money.