My first investment

[Patrick86]

Hey guys, long time lurker here that has decided to dive into the world of property investment. I have located a property that I would like to have a punt at. It's coming up to auction soon, it consists of a commerical unit and a large 3 bedroom apartment above. Currently the apartment is not accommodated and is in need of a referb, the commerical unit below is currently occupied and is achieving £400pcm.

The property had Planning Permission for a re-development to create 4 one-bedroom apartments with 2 lock-up shops maximising on the large site which extends to the rear. I'm not sure when this has expired but I should know tomorrow when I go view it with the agent.

The guide price is at £50,000. I have not yet looked for finance but I will get onto that as soon as the legal pack has been sorted and I've had a good look around the property. Would a bridging loan be the best way to go forward?

Since this is my first investment I am somewhat cautious and would love to hear from all you professionals about what I should look out for and be aware of. Ideally I want to get a loan to purchase the property at auction and then apply for another loan for the redevelopment.

Thank you so much,
Patrick

 

[Longterminvestor]

In these situations I have seen people take out bridging loans to cover the cost of the redevelopment and then remortgage the property on the higher value (unless a quick sale can be concluded). Hopefully there should be some significant upside on the development?

Are you putting any capital into the investment or is it all loan based?

 

[Gina Lancaster]

Hey guys, long time lurker here that has decided to dive into the world of property investment. I have located a property that I would like to have a punt at. It's coming up to auction soon, it consists of a commerical unit and a large 3 bedroom apartment above. Currently the apartment is not accommodated and is in need of a referb, the commerical unit below is currently occupied and is achieving £400pcm.

The property had Planning Permission for a re-development to create 4 one-bedroom apartments with 2 lock-up shops maximising on the large site which extends to the rear. I'm not sure when this has expired but I should know tomorrow when I go view it with the agent.

The guide price is at £50,000. I have not yet looked for finance but I will get onto that as soon as the legal pack has been sorted and I've had a good look around the property. Would a bridging loan be the best way to go forward?

Since this is my first investment I am somewhat cautious and would love to hear from all you professionals about what I should look out for and be aware of. Ideally I want to get a loan to purchase the property at auction and then apply for another loan for the redevelopment.

Thank you so much,
Patrick

Hi Patrick,
It sounds like a great project, are you still looking for advice as we specialise in bridging and other loan options for projects just like yours? If you would like to email me my address is [email protected] or alternatively call me on 07841 016596. Look forward to speaking to you, Gina

 

[ahmed226]

Hey guys, long time lurker here that has decided to dive into the world of property investment. I have located a property that I would like to have a punt at. It's coming up to auction soon, it consists of a commerical unit and a large 3 bedroom apartment above. Currently the apartment is not accommodated and is in need of a referb, the commerical unit below is currently occupied and is achieving £400pcm.

The property had Planning Permission for a re-development to create 4 one-bedroom apartments with 2 lock-up shops maximising on the large site which extends to the rear. I'm not sure when this has expired but I should know tomorrow when I go view it with the agent.

The guide price is at £50,000. I have not yet looked for finance but I will get onto that as soon as the legal pack has been sorted and I've had a good look around the property. Would a bridging loan be the best way to go forward?

Since this is my first investment I am somewhat cautious and would love to hear from all you professionals about what I should look out for and be aware of. Ideally I want to get a loan to purchase the property at auction and then apply for another loan for the redevelopment.

Thank you so much,
Patrick

Hi,

I am new to the property market. I recently bought a 1 bed apartment in Istanbul. paid 40% deposit, and paying the rest in interest-free instalments. I would advise against taking out loans. more burden for you. theres plenty of developers/agents out there that are very flexible on new build, offering 2-4 year payment plans.

 

[Longterminvestor]

Hi Ahmed226

Very good payment option if available. I presume the property will remain in the developers name until your final payment?