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buying a property then remortgage

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  • buying a property then remortgage

    Im trying to think how to build my portfolio up quicker and i was thinking would i be able to say buy a property 10 or 15 k below what it would be worth. Spend a small amount on decorating then remortgage to the actual value to basically get the deposit back to plough into another property.

  • #2
    And what sort of profits do you think you would seriously make on just a £10-£15k investment? Have you seriously found a property selling for £10 in the UK? If so, how does your business plan of profits to loss compare?

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    • #3
      not sure you get where im coming from. Say there was a property 77k and i bought for 70k. put 7 k deposit 10% so mortgage is 63000 spend 2 to 3 k on property. Have it remortgaged to value say 90k and again get your money back you put in.

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      • #4
        Ah, sorry - I misunderstood - I thought you were looking for a 10-15k property.

        However, with property prices in decline and sales volume also falling, you need to be very sure that you can sell the property at the target price after. It's probably not the best time to be investing in UK property right now.

        2c.

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        • #5
          I agree with Brian - also if remortgaging lenders are now going to be very iffy about lending say 85% of 90K if you have only recently bought it for 70K. Logically in the present market if it was worth 77K when you bought it and you spent 2-3K on it then it will probably only be worth about 75K!

          As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.
          RICHARD WEBSTERwww.rwco.co.uk
          As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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          • #6
            There are still ways out there to remortgage in one day of owning.I buy BMV property like this and hardly put any of my own money in.

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            • #7
              Credit Facilities Available at £206 p/m

              Buy now for just 206 GBP per month !
              click here www_casmarkhomes_com

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              • #8
                I wouldn't recommend this strategy at the moment

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                • #9
                  Be careful

                  I would agree with PaulKay, the market of lenders is constantly shrinking and you would also need to consider your turn around time as this would make a difference to the initial and subsequent lender you use, not to mention the possibility of early redemption payments.

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                  • #10
                    No Money Down Finance Exposed

                    Hi

                    if you want to know more about the problems of buying No Money Down, I have put together a 50 page, low cost report on all the different types of No Money Down schemes. I have shown in detail how they actually work, the pros and cons of each one and the potential legal, financial and tax implication of using them.

                    and yes - they are seriously flawed

                    PM me if you want to know more as forum rules dont allow me to put a link on this page

                    Mark

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                    • #11
                      There should be no problem with that strategy if you can find a mortgage lender who will remortgage the property as soon as your have finished refurbishing it. In todays market that might be a difficult call, but if you can wait 6-12 months before remortaging then providing the rents can cover then again there should be no problem. Why not contact an IFA / Broker and see whats on offer, probably not alot at the moment.

                      That said, todays problems are tomorrows opportunities so if you stay in touch with the property market and have to wait for it to bottom out then things will come your way eventually.
                      Mark
                      Bridging Loans | Property Development Finance

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                      • #12
                        NMD Exposed

                        Hi,

                        I can 100% recommend MarkT's report; NMD Exposed.

                        I have bought it and consider it a well written objectional view of the pro's and cons of buying property NMD.
                        If you are new to this concept, like me, then this is an essential piece of literature, particularly the Tax implications when using this technique.

                        Kind regards

                        Angie

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                        • #13
                          BMV no money down deals are over Mortgage Express pulled the rug 3 months ago. Loads of property investors with no equity are in it upto thier necks and more. We get enquirys all the time from proffesional landlords (ha what a joke 20 properties maxed out with just enough incometo cover the mortgage) all the time, sorry cant help. Good new for FTB's prices are going to get a lot cheaper and if you dont mind living in a new build flat should be 50% off at auction.
                          http://www.jpfinancial.co.uk/

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                          • #14
                            No money down deals are still possible....I am still doing it. It's all about finding the correct discounted property.

                            PM me for further details.
                            Becky

                            www.fruitmortgages.com

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                            • #15
                              Becky is right. It is all about finding the correct discounted property. I`ve just read the a really good, exciting book on Property Investment called "Make Cash in a Property Market Crash" writen by Rob Moore and Mark Homer of Progressive Property. If you want help on how to buy great deals at the moment I would definately recommend you read this book. It`s helped me find some real jems.

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