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General => General discussion => Topic started by: Sam on 24 July 2013, 16:09
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Me and my Mrs have been put in a position where we could buy a 5 bed property with out buildings in my village for waaayy under value as it is A. In need of renovation and B. Got turned down for development into flats before the bloke who owns it business went under.
It needs a lot of work but I have been brought up on building sites (even though I no longer work for my dads firm I still dabble) and her parents are Architects so we fully understand what is needed. We can get hold of the money though a mix of business and family loan to make the full amount, or at least an offer an amount.
Why not take out a mortgage? Well, this is the catch... I'm a student for another 9 months and thus completely un-mortgagable. I have a post graduate job lined up and my Mrs has just set up a business (which is already employing 3 people) so the idea is to pay interest on the loan for 2 years whilst living in and doing up the property and then take out a mortgage to buy buy it at its current value plus fees off our parents/pay off the bank loan.
The property has a shop frontage (no overheads for my Mrs business, she is renting a unit at the moment) and whilst in final year, my time will be far more flexible than it ever will be in my life again, so it all seems to slot into place, kinda.
If you were a 23 y.o. with your partner of 8 years (we have been living together for a while now too before you ask), what would you do? Jump in or bad decision. :undecided:
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Sounds incredible.
If you know you can afford it, you should do it. A similar opportunity might not come around again.
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Sam, in all honesty, i'd steer well clear, however tempting, of any commercial property at the moment, you can't give them away! As an example, my wifes uncle had a shop in Leicester near the Racecourse, prime location for a furniture shop... read exclusive. 6 years ago. it was valued at over 600k give or take, the property then sold for 240kish one year ago, the buyer has just resold the property, and took a 20k hit on it! he thought he was being smart! Now the property is being converted into a home
I'm all for enterprise, but sadly now is not the time, commercial properties have NO value at the moment, only what someone is willing to pay.
Hold tight for a couple of years, get a mortgage, and rip through a project that you can both handle, given the help that you have around you, sell it and move on to something bigger and better, do this 4 or 5 times over the next 10 years, and you'll be sitting pretty!
Thom
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Sam, in all honesty, i'd steer well clear, however tempting, of any commercial property at the moment, you can't give them away! As an example, my wifes uncle had a shop in Leicester near the Racecourse, prime location for a furniture shop... read exclusive. 6 years ago. it was valued at over 600k give or take, the property then sold for 240kish one year ago, the buyer has just resold the property, and took a 20k hit on it! he thought he was being smart! Now the property is being converted into a home
I'm all for enterprise, but sadly now is not the time, commercial properties have NO value at the moment, only what someone is willing to pay.
Hold tight for a couple of years, get a mortgage, and rip through a project that you can both handle, given the help that you have around you, sell it and move on to something bigger and better, do this 4 or 5 times over the next 10 years, and you'll be sitting pretty!
Thom
It's a residential property with a small shop frontage Tom that we would convert to live work for both the shop and studio space out the back, it has separate access to the shop and to the house so could be seperated. It comes with parking for 5 cars, a double height brick slaughter house with 2 stables/livestock pens and numerous out houses along with a south facing garden. So it's not a bad gig
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As Thom says commercial property is very cheap if you cant get planning permission for it.
If your going to run a business there then that makes some sense but then you have a home and a business that need renovation to function. All that said if you can make it work then it's a few rungs on the ladder in one hit.
I would look at why planning was refused and what it would take to get it, a sizeable plot with planning could be flicked on for good profit.
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It sounds like it's actually ideal for your requirements (and potentially ideal for a long time).
Planning could be turned down for change of use for many reasons - change of use is always contentious.
If it suits you as it is AND it's properly cheap AND there aren't any major structural issues I'd get in there, subject to understanding the cash requirement to renovate it to the point you can live in it.
If you're looking at it as an investment for re-sale - don't do it.
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IMO with property / land as long as you buy it right your hard pushed / stupid to losse out as long as funny money isn't involved.
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I'm confused as to what the dilemma is here. If I was a bloody lucky son of a b!tch like you, I know what I'd be doing (subject to checking out planning first, naturally).
I bought my house at 22 with my partner of two years at the time, we'd lived together 6 months. That was around 5 years ago, don't regret it, wouldn't have been able to buy anywhere at all on my own so...
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Got trumped by a cash buyer as the bank took too long deciding on the business loan at out end. :undecided: hopefully it all falls through :grin:
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I've been accepted for a 170k mortgage which I was shocked at. A friend told me that you can do it after 3 months wage slips if you have a limited company.
Just a deposit and whether I wanna do that or rent....
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100k deposit, 3 incomes and I can't get close to a 170k mortgage :lipsrsealed:
Just saying :smiley:
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100k deposit, 3 incomes and I can't get close to a 170k mortgage :lipsrsealed:
Just saying :smiley:
Natwest, 15% down.
My brother got offered PLENTY more than I got offered. Runs a roofing company, they put 30K down and got offered over 200.
A mate of mine runs a hair dressers in Sheerness and he easily got a mortgage. Where are you looking?
To be totally honest I have got a fairly good guarantor (mum n dad, no mortgage on their house). Probably the only real reason I got it. Brother didn't have any though, I'd imagine my mate had one though as his dad had plenty of property.
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We got offered a lot more than realistically we could have afforded. What you get offered doesn't mean you have to take it!
Guarantor on a mortgage? We don't have one and never needed one...
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No but that is probably the reason it was accepted tbf. I'm not taking it as one I can't afford the deposit yet and two I would like to try without the guarantor as we all know what happens when it goes tits up and family are involved.
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We got offered £136k from both our salaries, but we couldn't afford the mortgage on anything over £100k. Plus we only had a 5% deposit. Still managed though :smiley:
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100k deposit, 3 incomes and I can't get close to a 170k mortgage :lipsrsealed:
Just saying :smiley:
Guess being old has its disadvantages some times.... :tongue:
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100k deposit, 3 incomes and I can't get close to a 170k mortgage :lipsrsealed:
Just saying :smiley:
100k deposit & you can't get £170 k mortgage :shocked: seriously shocked by that
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100k deposit, 3 incomes and I can't get close to a 170k mortgage :lipsrsealed:
Just saying :smiley:
100k deposit & you can't get £170 k mortgage :shocked: seriously shocked by that
Me too, I have been offered more with only 60k equity
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Old/Exforces/General Chuffness = Banks nightmare
The bunch of cnuts that they are, I can't get near a mortgage (not a mainstream one) My wife doesn't work, i earn a lot for someone as thick as I, and they say no even with £30k deposits
But my mate who works in a warehouse and his wife who works part time in a book shop have just got a brand new 2 bed house on one of the government schemes with naff all deposit. they're total incomes sub 25K its a f**king joke!
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News just in...offer accepted :shocked: :laugh: :lipsrsealed: :cool:
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Other buyer fell through then?
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Is your uni (now and next year) close to the renovation project? If not you run the risk of 1, Failing at uni having devoted too much time to bricklaying, plastering and plumbing, 2, Splitting with girl after many tired arguments, 3, running out of cash to renovate and selling at a loss.
If your girls business is making a good profit (not just turnover) then she might be able to carry the renovation burden by hiring tradesmen to lighten your load.
If her business is really just a hobby and actually losing money then you might wish to be flexible in the job market after your postgrad stint and not tied to one place.
Just a thought.
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Is your uni (now and next year) close to the renovation project? If not you run the risk of 1, Failing at uni having devoted too much time to bricklaying, plastering and plumbing, 2, Splitting with girl after many tired arguments, 3, running out of cash to renovate and selling at a loss.
If your girls business is making a good profit (not just turnover) then she might be able to carry the renovation burden by hiring tradesmen to lighten your load.
If her business is really just a hobby and actually losing money then you might wish to be flexible in the job market after your postgrad stint and not tied to one place.
Just a thought.
Yep! Doing my final year whilst renovating a property and holding down a job one day a week is going to be a challenge. Me and my lady have been together for almost 8 years now, been through business start ups, family bust ups, 5 years of universtiy, living at other ends of the country to each other... not once have we had a break or anything daft like that.
Business is far from a hobby, she employs two seamstresses 3 days a week and takes a wage for her and her business partner. All of this is well ahead of projections so looking good.
I understand the benefits of been flexible with post grad employment but I can't think of a single employer who I would rather work for in my sector. If I sat down with you over a pint and talked though what I have done this year alone with the company I'm working for you would be gob smacked, I have to pinch myself.
Other buyer fell through then?
Yep, apparently it was too much work... could be interesting. :grin:
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Top Tip:
Start your own business now. Whilst working for the company during the postgrad degree always be thinking about your new business and how you can use anything learned to your advantage. Don't just keep working for someone else.
I was in the same situation, completing my PhD and then three years postdoc. Then straight into my own company, based on the postdoc subject. It's given me a good life.
Don't waste all that youthful energy working for others or restoring a ruin.
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Top Tip:
Start your own business now. Whilst working for the company during the postgrad degree always be thinking about your new business and how you can use anything learned to your advantage. Don't just keep working for someone else.
I was in the same situation, completing my PhD and then three years postdoc. Then straight into my own company, based on the postdoc subject. It's given me a good life.
Don't waste all that youthful energy working for others or restoring a ruin.
It would be an advantage to my current company to be self employed to be honest and taken on as a consultant... may have to have a chat with him about that. My books look good, his books look good... hmmm :smiley:
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I know I normally shoot people down for linking the Daily Mail but, in relation to this thread
http://www.dailymail.co.uk/news/article-2690545/How-buying-house-stressful-bankruptcy-divorce-death-loved-one-according-poll.html
Jesus f**king christ, I feel I could have a breakdown any second :cry: :sad: :sick:
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Try buying AND selling at the same time then :whistle: :sick:
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We want to move house but it's a f*cked up situation.
If we sell the house for what we paid for it we'd walk away with a £10k deposit for another place. That means we could get a 95% mortgage on a £200k house, but we can only borrow up to £150k from the banks. We can't afford to make the repayments on a £150k house, we can probably afford something around the £100k mark. The location we want to move to £100k will only get us a 2 bed terrace.
So basically we can downgrade (we have a 2 bed semi with garage), or stay in this house until we die (or someone else in my family who's rich does!).
Really not ideal :undecided:
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Try buying AND selling at the same time then :whistle: :sick:
Try buying a grade II listed semi-habitable property with a commercial shop attached and a flying freehold. :sick:
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Try buying AND selling at the same time then :whistle: :sick:
Try buying a grade II listed semi-habitable property with a commercial shop attached and a flying freehold. :sick:
Sounds to me like your problems have only just started, grade two listed with a flying freehold for your first property :shocked:,i hope you have some knowledgeable friends and family :grin:
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Completed today! Got my limited company certificate through yesterday! Thanks for all the advice, now to crack on!
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You'll do well. Now don't bugger it all up by sleeping with the housewife next door.
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Next door is my mate, the other side is a company I work for a lot and next door to that is the pub. Perfect.