Help please ! £100k cash to invest

Discussion in 'General Property Investment Discussion' started by Chris HIll, Aug 13, 2018.

  1. Chris HIll

    Chris HIll New Member

    HI I have £100,000 cash and want to invest it in to a house or 2 houses to generate a income and hopefully get some capital gain . To be honest I’ve tried to get buy to let mortgage but I’ve had to take out a pay day loan 6 months ago! Not good i know . Think the best way is to buy the houses cash and remortgage later to get more ( correct me if am wrong please ) can anyone suggest where the best areas to buy or what the best way is to approach this ? Any advice will be greatly appreciated
  2. Jem Rose

    Jem Rose New Member

    Hi Chris, can i ask what is your motivation to buy. Are you looking for a property for yourself to live in or an income generating investment property. There are a number of options if you are unable to achieve a mortgage but still wish to invest to receive either an income through property or capital growth.
  3. Chris HIll

    Chris HIll New Member

    Thank you jem for responding. The houses will be for buy to let and to generate me a income and hopefully increase in value over time . Having 100k sat in the bank is earning me £0 ! Any ideas or help please ?
  4. FWL

    FWL Member

    Why were you in such a rush to buy a property using a payday loan? The interest rate on these loans is suicide for investors as you will have to make well in excess of 10% to break even?

    Without a property to use as collateral you may find it tricky to arrange your first buy to let mortgage. However, once you have paid down a significant amount of your first buy to let mortgage then you may well be able to use your first property to introduce a financial gearing effect.
  5. totallyproperty

    totallyproperty Administrator Staff Member

    Hi Chris,

    welcome to the forum :)

    I would do a bit more research into your mortgage options. I wouldn't want to buy a property for cash, and then still have an issue further down the track with getting a mortgage on the property. But £100k is a good sum to buy and create a high yielding property. I would suggest looking to somewhere like Manchester (which has seen the highest growth outside of London for house prices in the last 5 years) which would be an excellent location to create a high yielding HMO.

    Have a read of our free HMO ebook which talks you through all the basics or sourcing and setting up an HMO.

    Is this the first time you will have bought an investment property?
  6. Longterminvestor

    Longterminvestor Administrator

    Hi @totallyproperty

    I would be interested to learn the current HMO yields available on Manchester properties? I lived in Manchester many years ago and know it has a vibrant student community and a business scene which keeps going from strength to strength.
  7. Karen R

    Karen R New Member

    I am not sure what you mean by you tried to get a buy to let but had to take out a pay day loan? Do you mean the pay day loa prevented you being accepted for the buy to let? Also do you mind me asking where the £100k came from and how long you have had it as it would be a question any lender will ask. With that amount of money you could buy a property for cash and let it out or you could buy somewhere using some of the money as a deposit and borrowing the rest so many options for you.
  8. I think the suggestion is that the payday loan application has impacted on the buy to let mortgage funding application. However, unless you fell behind with the payday loan payments would this really impact your credit rating? Is this type of lending any different to bridging finance at least in principle?

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