E
Emc
New Member
Hello all, I'm after some advice. I'm new to property developing but have done up a couple of flats and have been thinking about changing careers to property developing for a really long time.
In order to get started I will need to use my home. I currently live in a one bed flat in south east London, valued at about £315,000. My existing mortgage is aprox £102,000. I'm after some investment advice on whether it would be better to switch my current mortgage to a 'let-to-buy' mortgage to release £90,000 equity to use for an auction house in the North of England or to completely sell up and use the full £300,000 for my first property development project.
A bit more info:
Option one - Switching by current home to a buy to let (or let to buy) mortgage to release £90,000 to use for either an action property or as deposit for a house for up to £150,000. (My salary from my day job is very low and I'm only able to get a mortgage of maximum £110,000, although I'm actually hoping to give up my current job and work on property full-time - hopefully after I have a mortgage in place if needed). The advantage of the 'let to buy' option would be that I keep my London flat and benefit from any long-term property price increases. But on the down side, I think it will be a struggle to find somewhere for the aprox £75,000 that I would need, bearing in mind renovation costs. Also, I know that you get a better return if you have more money to invest in the first place. So...
Option two - Would you advise that it would be a better bet to completely sell my London flat and use the full £300,000 to invest in my first property project - or plot of land for development? (It would actually be £200,000, unless I'm able to get a mortgageable property for a bit more).
I am hoping to turn this into my career and really just wanted some advice on what would give the best return and be the best option to get started with. It's really scary to sell my home and risk losing my place on the London property ladder but I hope if I can get a good development return, it could be worth it? In the meantime I could move in with my partner who lives in Hertfordshire.
I'm not afraid of hard work and have done everything from floor sanding and painting to kitchen and bathroom redesigns. I love good design and feel that property developing could be a great career choice for me. So I really just need to work out the best route forward.
Any tips greatly appreciated! Thanks in advance.
In order to get started I will need to use my home. I currently live in a one bed flat in south east London, valued at about £315,000. My existing mortgage is aprox £102,000. I'm after some investment advice on whether it would be better to switch my current mortgage to a 'let-to-buy' mortgage to release £90,000 equity to use for an auction house in the North of England or to completely sell up and use the full £300,000 for my first property development project.
A bit more info:
Option one - Switching by current home to a buy to let (or let to buy) mortgage to release £90,000 to use for either an action property or as deposit for a house for up to £150,000. (My salary from my day job is very low and I'm only able to get a mortgage of maximum £110,000, although I'm actually hoping to give up my current job and work on property full-time - hopefully after I have a mortgage in place if needed). The advantage of the 'let to buy' option would be that I keep my London flat and benefit from any long-term property price increases. But on the down side, I think it will be a struggle to find somewhere for the aprox £75,000 that I would need, bearing in mind renovation costs. Also, I know that you get a better return if you have more money to invest in the first place. So...
Option two - Would you advise that it would be a better bet to completely sell my London flat and use the full £300,000 to invest in my first property project - or plot of land for development? (It would actually be £200,000, unless I'm able to get a mortgageable property for a bit more).
I am hoping to turn this into my career and really just wanted some advice on what would give the best return and be the best option to get started with. It's really scary to sell my home and risk losing my place on the London property ladder but I hope if I can get a good development return, it could be worth it? In the meantime I could move in with my partner who lives in Hertfordshire.
I'm not afraid of hard work and have done everything from floor sanding and painting to kitchen and bathroom redesigns. I love good design and feel that property developing could be a great career choice for me. So I really just need to work out the best route forward.
Any tips greatly appreciated! Thanks in advance.
