Sam
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Registered: 24th Dec 99
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Is it possible for a FTB to get a mortgage (or two mortgages) for a couple of houses that need renovation work - one to live in, the other to either fix and rent out or fix and sell for profit?
Both houses are next to each other BTW.
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
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If you can make the bank happy that you have enough money, then i dont see why not? 
Can you afford both mortgages? (i.e have enough of a deposit/down payment for each, and be able to keep up with the payments with no problems)
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Rob_Quads
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Registered: 29th Mar 01
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All comes down to money. You will need to prove you can pay the morgage on both of them.
If you can only afford the payments on one you might have to go BTL motgage on the other but that requires a $$ deposit now
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luciaadr
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No problem if you have the monies / can get the finance.
Only thing you've got to look out for is capital gains tax on 2nd homes when you sell.
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Whittie
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Depends on the money. Shouldn't be a problem is credit rating is decent....!
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Aaron
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Location: Cottingham, East Riding
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Has anyone mentioned anything about making sure you have the money to pay it yet?
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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Also consider how you might feel if either sale falls though and you're left with only one of the pair.
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Jules S
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Registered: 24th Dec 03
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I cant help feeling that all of this 'make a living' out of property development is a thing of the past.
Possible? yes
Viable? who knows.
IMO property values are going to go due south and mortgage rates are going to sky rocket very soon.
Depends on the deal/condition I guess, but I wouldn't be jumping in right now..
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AndyKent
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Would tend to agree with Jules. I'm not sure what's going on with house prices - I don't think anyone is.
They might drop, they might just hold firm for a couple of years. The one thing they're not going to do is shoot up even if you do a shit load of work inside to make it look better.
[Edited on 14-02-2011 by AndyKent]
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Rob_Quads
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There is still a market for property developing but previously where virtually anyone could buy a run down, pay some builders to fix it and sell it on for a nice profit (even with loads of cock ups) are well and truely gone.
You now need to make sure you have all the right contacts, get the product for the right price, get the right property etc.
I can't see property rates going south. The country is a bit stuck now due to the high %age of people who came onto the market when it was so high. If prices were to fall the county could very quickly go into colapse because its not the middle class that could really start to suffer and as soon as they stuffer the it affects all industries.
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Sam
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OK just assume money isn't an issue when it comes to paying deposits/mortgage payments etc. for the two houses.
I just wondered whether mortgage lenders would be happy to offer FTBs two homeloans instead of one, given that these days they aren't too keen on lending anything.
I ask this as an investment opportunity has come up for us, the two houses require a lot of renovation so the price advertised for each house reflects this (and in fact only the other day I noticed the advertised price for each house went down by £5k). The estate agent told us that we can put in a "silly" offer for one or both of them as the owner (one person owns both houses) just wants to get rid of both of them.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by AndyKent
They might drop, they might just hold firm for a couple of years. The one thing they're not going to do is shoot up even if you do a shit load of work inside to make it look better.
i disagree. we paid 176k for our house, spent about 2k on decoration and got it valued at 185k 7 months later.
while it isn't a massive jump, it's still decent considering the short time we've been here and the fact it's just a 2 bed.
edit: actually it probably wasn't even 2k, more like 1k. most was spent on furniture that we will take with us. so 177k-185k isn't too bad.
[Edited on 14-02-2011 by Ben G]
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RichR
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Location: Waterhouses, Staffordshire
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There's a difference between valuation and actual sales amount though Ben
Mines gone up by £10,000 according to the Mortgage valuers, as it stands in its unfinished condition but in reality noone will pay that for it because its an unfinished project
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AndyKent
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Registered: 3rd Sep 05
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quote:
Originally posted by Ben G
quote:
Originally posted by AndyKent
They might drop, they might just hold firm for a couple of years. The one thing they're not going to do is shoot up even if you do a shit load of work inside to make it look better.
i disagree. we paid 176k for our house, spent about 2k on decoration and got it valued at 185k 7 months later.[Edited on 14-02-2011 by Ben G]
But what was the asking price when you bought it. £180-185 I suspect.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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180, but as everyone else says it's a buyer market, so pretty easy to knock people down.
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John
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Registered: 30th Jun 03
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I think that's the point Andy is making, you'll be lucky to come out even.
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Rob_Quads
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Yup - If they say £185 then IMO you will get getting offers around the 170 mark pushing up to 180 if someone really likes it.
To say the market is dead at the moment is an understatement. I know quite a few trying to sell houses and nothing is moving unless you accept silly money (like we did selling my fiencees house)
Selling at 180k and you would still loose money on it once you take fees etc into account.
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Ben G
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we sold our house within 2 weeks of it going to market, so it's definitely not dead.
you just need to have a house in an ideal location.
people who have houses that have been on the market for months either have really expensive houses or houses that aren't what most people want e.g. main road, dated decor, not enough land etc.
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John
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Registered: 30th Jun 03
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Has it sold?
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AndyKent
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Registered: 3rd Sep 05
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Luck of the draw Ben. Mum lives in a desirable area, good schools etc etc. and theres literally no-one looking. Your specific area might be doing ok but across the UK its not so good.
Reading the RICS monthly valuation reports doesn't look too good. Most professionals reporting a complete lack of motion - no price drops (people don't want to think they've lost money) but nothing being sold in volume either. Yes, sales here and there but the market is practically dead.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by John
Has it sold?
the house we wanted sold the day before we put our offer in so we are looking for another property and they are happy to wait for us.
anyway, this is sam's thread so best not spam it up.
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Jules S
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Registered: 24th Dec 03
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I'm not intentionally spamming here, but you have to question the motive in Sams thread (not in a bad way, but just questioning it generally)
We have had over inflated house prices on here for as long as I can remember...25 years in my case 
Banks have lent money hand over fist for ages, and they have done so on the basis that their £££ was/is secure on the LTV ratio. The RICS might like you to think that property asset values are stable but that's a crock, they are simply using subjective data to keep surveyors %fees up. In real terms most propertys have dropped a significant amount since 2008.
And yes they have dropped, even in a period when we see record low BOE base rates.
So what happens when base rates rise? and believe me they will....
IMO there is going to be a fundemental re-alignment of property values in this country. For years it's been 'borrow some money, get rich paying off the mortgage whilst seeing your asset gain in value'
I simply cant see that happening now. What I do see is people seeing their house more as a place to live in and the mortgage being like 'rent'....not a cash cow. Houses then get left to kids like the German demograph.
Just my opinion.
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charcoalgrill
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Registered: 23rd Oct 02
Location: Bristol
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In response to the original question- i suspect that if your a first time buyer you won't have much capital behind you? So the banks are probably unlikely to lend you the money.
In regards to the bickering, I would say you are both right- The market is not dead, things are selling- IF they are placed on at a sensible price, but people have it in their head that what places were worth in 2007/8/9 they still want to achieve now. Even houses on main roads sell! (I work for an estate agents but am also a building surveyor- we placed a house on the main road for £250k and sold it first week- they were talking about £265k obviously above the stamp duty which would have killed it)
An agents "valuation" is an estimate, and not an actual ACHIEVING figure. I have been physically kicked out of two places over the space of 8 years because the owners didnt like my valuation. Both went on at exceptionally inflated prices and didnt sell- 1 is still for sale for £350k- 3+ years ago I valued at 400k, another agent said £480k, it is worth around £300k in the current market.
The papers have stated that they think the BOE rate is having pressure to rise today due to cost of living increasing.. Which i suspect will inevitably lead to an increase in repo's= higher supply-> prices decreasing.
I do agree with gone are the days people can make a living from buying and refurbing- blame those stupid tv auction programmes..
Nobody is right on this matter, unless you are mystic meg and your crystal ball tells you so..So watch this space I guess
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Sam
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Registered: 24th Dec 99
Location: West Midlands
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Decided to pass on these two properties in the end BTW - but thanks for the replies everyone. 
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