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Property advice, please help

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  • Property advice, please help

    Hi there, my name is Jay 29 and I work as a Civil Engineer in Glasgow.

    In 2001, my mum and dad bought a house for £65k which they sold 3 years later for £123k.

    This resulted in me catching the bug, and since Feb 2008, I have bought 3 flats.

    To be honest, I dont know how or why I did it, as they are mortgaged on interest only and as such, the rent i get in only covers the mortgage.

    I was hoping to sell the flats in 4 or 5 years making around £20-£30k on each, but at the moment this just doesnt seem realistic.

    Can you guys give me any advice as i seem to be lost.

    Many thanks

    Jay

  • #2
    Re: Property advice, please help

    If I were in your boots and the mortgage was covered I would hold onto them for a while, unless you desperately need to sell. If you need to sell get them valued and evauate how much they have dropped.
    Portugal Property for Sale

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    • #3
      Re: Property advice, please help

      If you're looking to sell around 2012 - 13 or thereabouts, you may be in with a chance of a profit then, but nobody's got a crystal ball.

      Can you make any improvements that would increase your monthly rent? Subdivide large rooms to make a 1-bed into a 2-bed, etc? Upgrade kitchens, bathrooms?

      Are there energy savings you could make that would cut down bills? Upgraded DG, cavity wall insulation, upgrading heating?

      Are there improvements you could make that would reduce maintenance costs?

      Again, if you don't NEED to sell them, and your outgoings are roughly covered by the rent, just ride it out until things do improve.

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      • #4
        Re: Property advice, please help

        Since your parents made a profit, do they have any advice to offer? Did they continue to buy/sell profitably, or was this a one-off?

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        • #5
          Re: Property advice, please help

          Its better you wait five or six years more, it will be more profitable!

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          • #6
            Re: Property advice, please help

            As above, if you don't have to sell then don't mate!

            Comment


            • #7
              Re: Property advice, please help

              Would agree no point in selling unless you have to. If you could afford it I would be inclined to try and get one of the mortgages off interest only and try and repay some of the mortgage, will help you in the long term and might give you a bit more flexibility.
              Northern Ireland Property

              Comment


              • #8
                Re: Property advice, please help

                Originally posted by mumbai_sailor View Post
                Hi there, my name is Jay 29 and I work as a Civil Engineer in Glasgow.

                In 2001, my mum and dad bought a house for £65k which they sold 3 years later for £123k.

                This resulted in me catching the bug, and since Feb 2008, I have bought 3 flats.

                To be honest, I dont know how or why I did it, as they are mortgaged on interest only and as such, the rent i get in only covers the mortgage.

                I was hoping to sell the flats in 4 or 5 years making around £20-£30k on each, but at the moment this just doesnt seem realistic.

                Can you guys give me any advice as i seem to be lost.

                Many thanks

                Jay
                All comes down to when the next surge will take place, which is unlikely to be before 2013

                Comment


                • #9
                  Re: Property advice, please help

                  Originally posted by stupower View Post
                  All comes down to when the next surge will take place, which is unlikely to be before 2013
                  Some might say unlikely before 2020!!

                  Comment


                  • #10
                    Re: Property advice, please help

                    HI,
                    If you could afford it, I would be inclined to try and get one of the mortgages, off interest only and try and repay some of the mortgage will help you in the long term and might give you a bit more flexibility.

                    Comment


                    • #11
                      Re: Property advice, please help

                      Hi Jay

                      I couldn't agree with 'Phoenix Homes' more. You should most certainly try to get at least one of the flats onto a capital repayment mortgage. You're no doubt concerned since interest rates have only one way to go - up, but at least you're not running into deficit every month and starring down the barrel of repossession.

                      That said, you are in a precarious position because can you afford for your mortgage onterst rate to go up? Many people don't believe the base rate will rise quickly since there are many people in a similar boat to you, but rise they will!

                      I thoroughly reccommend you start saving in a separate account to cover the impending rise in your mortgage costs, and certainly start trying to repay the mortgage on at least one home.

                      Best of luck

                      Dan S
                      Free Guides For First Time Buyers!

                      www.FirstTimeBuyerGuru.com

                      Comment


                      • #12
                        Re: Property advice, please help

                        Hi Jay

                        I couldn't agree with 'Phoenix Homes' more. You should most certainly try to get at least one of the flats onto a capital repayment mortgage. You're no doubt concerned since interest rates have only one way to go - up, but at least you're not running into deficit every month and starring down the barrel of repossession.

                        That said, you are in a precarious position because can you afford for your mortgage onterst rate to go up? Many people don't believe the base rate will rise quickly since there are many people in a similar boat to you, but rise they will!

                        I thoroughly reccommend you start saving in a separate account to cover the impending rise in your mortgage costs, and certainly start trying to repay the mortgage on at least one home.

                        Best of luck

                        Dan S
                        Free Guides For First Time Buyers!

                        www.FirstTimeBuyerGuru.com

                        Comment


                        • #13
                          Re: Property advice, please help

                          It isnt known as "Buy to Regret" for nothing!

                          Like you, many were taken in by easy mortgage lending and the chance to make a quick buck on the rising property market and then found they bought at the top. GREED was your downfall.

                          Owning property is a long term thing, Buy to NEST IN not Buy to INVEST IN!

                          Buy a house and live in it. You now know why it is not a good idea unless you buy and sell at the right time. Overall, you would be better off with an ISA!
                          BRAND NEW HOMES
                          Information for UK new home buyers
                          New Home Blog The latest news and views

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                          • #14
                            Re: Property advice, please help

                            Interesting tread, many people have stated to keep hold of the property. Interest rate will rise soon as inflations is rising at the money and the government will increase interest rate eventually because if they don’t the value of the pound will decrease, therefore the question you need to ask yourself, When interest rate rise (I don’t know when it will) will the rent keep covering the mortgage or will you have to supplement it and if so can you afford to, look at your finance and see what is best for you in the long run. I would say get a valuation to see where your properties are at the moment.
                            We have debt solutions to help you get out of debt problems

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                            • #15
                              Re: Property advice, please help

                              Jodie B's right. You should also try and come up with a maximum percentage rise you could reasonably cope with and keep trying to save as much cash reserve as possible. You just need to concentrate on keeping your head above the water.
                              Free Guides For First Time Buyers!

                              www.FirstTimeBuyerGuru.com

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