J
Jayman21
Member
Hello
I need your advise on a situation. A family of four and still saving towards a deposit for their first home.
As a result the man who is the only income earner has decided to use what they have as deposit to go into property development (i.e. buy from auction; 1 or 2 bed properties then refurbish to re-sell in the open market for profit).
Doing this over time, he believes he will be able to raise the deposit required faster for the house they intend to buy (i.e. 4 / 5 bed house to take the size of the family).
They do not want to go the shared ownership route. Plus apart from his day to day job, property development is something he intends to venture into as a second income.
Questions:
1. What are you thoughts on this approach? Good or bad choice?
2. As they are not home owners yet but legal residents in the UK, will he be entitled to a mortgage for the purpose of buy to reselling properties in the UK?
3. Is he best doing this (i.e. seeking mortgage for buy and reselling properties) as an individual or using a LTD company.
4. If he decides to seat on his deposit and keeps saving using all the available options e.g first time buyer ISA, etc, then go for a mortgage to get their first home, how soon can he start seeking a mortgage for the purpose of buy and reselling properties?
Thanks and look forward to your response.
I need your advise on a situation. A family of four and still saving towards a deposit for their first home.
As a result the man who is the only income earner has decided to use what they have as deposit to go into property development (i.e. buy from auction; 1 or 2 bed properties then refurbish to re-sell in the open market for profit).
Doing this over time, he believes he will be able to raise the deposit required faster for the house they intend to buy (i.e. 4 / 5 bed house to take the size of the family).
They do not want to go the shared ownership route. Plus apart from his day to day job, property development is something he intends to venture into as a second income.
Questions:
1. What are you thoughts on this approach? Good or bad choice?
2. As they are not home owners yet but legal residents in the UK, will he be entitled to a mortgage for the purpose of buy to reselling properties in the UK?
3. Is he best doing this (i.e. seeking mortgage for buy and reselling properties) as an individual or using a LTD company.
4. If he decides to seat on his deposit and keeps saving using all the available options e.g first time buyer ISA, etc, then go for a mortgage to get their first home, how soon can he start seeking a mortgage for the purpose of buy and reselling properties?
Thanks and look forward to your response.