Renovation project advice please..

Discussion in 'General Property Investment Discussion' started by RichB22, Jun 14, 2017.

  1. RichB22

    RichB22 New Member

    Hello..
    I recently renovated & sold a property owned with ex-partner with a fair degree of success. Bare bones - Value £125-135k, mortgage £95k, equity equally split between myself & ex-partner who I bought out with 'declaration of trust' doc for £15k, spent £7k & completed 75% of work myself, took a year, sold at £180k..
    I now have £60k banked & an appetite to invest & repeat process.
    Outline of plan is to reside in property while I renovate, so would need utilities working etc, although I am prepared to 'rough it' to an extent. I have 20 years experience working as a skilled labourer on a variety of construction jobs, now in different field & would keep working full time, making this a part time project. Currently rent on month-to-month basis. My search area is Wiltshire / Somerset / Dorset borders, roughly 40 mile radius of Warminster.
    I would not consider myself especially financially adept, so am having trouble balancing how much to use as deposit, keeping repayment cost low vs leaving cash to cover work etc.. Any tips on decent financial advisors much appreciated!
    Essentially my question to you, the experts, is - What would you do?

    Many Thanks in advance, Richard
     
  2. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    Hi Richard,

    Welcome to the forum!

    Firstly it's a great idea to own it as your sole residence as there will be no capital gains tax when you sell. So keep doing that where it still works for your lifestyle...

    Make sure when you buy you consider all the purchase costs (legal fees, bank processing fees, stamp duty etc). Certainly leave enough for the renovation! It would be a big mistake to run out of funds and have an unfinished property with all your capital tied up in it...

    Also a good tip is try to get builders quotes BEFORE exchanging if there is more substantial work to do so you know what you're getting into from the beginning.

    Good luck and feel free to ask for help on here and we'll do our best to help...


    Sent from my iPhone using Property Forum
     
  3. Chris Garren

    Chris Garren New Member

    Hello Nicholas

    You are absolutely right. I am totally agree with your answer. There will be no capital gains tax when you sell.

    Informative advice!!

    Thanks
     
  4. RichB22

    RichB22 New Member

    Hi Nicholas

    Many thanks for this invaluable advice.. someone should tell Sarah Beeny who says the opposite! Guess she can afford the tax bill..
    Also apologies for slow response & thanks Chris for your welcome & corroboration..
    Speaking with a mortgage advisor Thursday so expect I will have more questions then..

    All Best, Richard
     
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