HI
Long time reader and applying some learnings in my own little real estate world through experience. I am still a student and will go back to Uni this Oct. and currently working FT while investing in properties.
Can I ask for your opinion? What do you think?
I am thinking to buy a property In UK and wonder do you think if it is achievable in my certain condition. I think I could but I wonder if it is realistic or if I am way too over my head.
Properties Cashflow +-
1. Studio Flat Overseas: currently let and CF @ +£240 per month
2. 2 bedroom loft: Currently on construction negative CF@ -£275
3. 2 bedroom loft: Currently on construction negative CF@ -£275
Can pull out Cash: Re financing
Property 1: + £200 monthly rent CF; + £14,000 refinance.
(I am on the process of refinancing the 1st property and can get: +£14,000
and get the tenant to pay £200 my repayments on my new mortgage.
property is fully paid btw)
Property 2 & 3. off plan. but will finish this August 2011, can be delay.
-CF: - £870 (- £550 bank finance + -£320 student loan (used for DP) )
Pull out (Refinance Total contract price): + £13,000
£ need for Turnover total approx: - £ 8,500
Total turn over need: £8500
£ 2500: need for turn over
£ 6000: need to cover for 1 year incase can't get rent (worst case scenario) as the 2 bedroom loft x 2 is in country side: will run as: Condominium - hotel, takes time to take off.
Current debt: £320 student loan repayment use for DP, monthly salary can cover
---
SUMMARY:
Need DP london property: 30k to 40k @ 200k worth property with 20% discount goal
Money can raise for UK DP:
£14,000 (property 1)
£13,000 (Property 2)
---
£27,000 total
Minus:
£8500: property 2&3 expenses
£1500: personal expenses ( tuition fee + holiday) this oct. 2011
-----
£ 17,000: left
£ 23,000 (need to raise)
The rest can borrow. or Mum can provide share to buy a property to rent.
OR Can borrow personal loan @ 300k monthly repay.
---
Research:
Im doing my due diligence, know the area I wanted to buy in London, research through 100 + properties and down to 10 to view and buy 1 hopefully before mid year. I also researched the demand in the area, did some advertising to test if people are looking for that area to rent, contacted estate agents and I think Im ready for viewings.
Although I am still looking at 2 more areas just incase I got stuck up at current area incase offers cant go through or cant have discount I need.
------
Plan:
1. Buy before end of year. Cash flow target £350 - £400/ month, use to repay my student loan so that can take off my salary if mum join me for deposit.
OR
Buy end of year. Cash flow target £400/ month, use to repay loan for the ther part of DP. Salary to repay student loan.
2. Make sure I have 20% goal discount on London property I will buy so I can pull out equity after 6 months to buy another property to cover my student loan.
3. Buy another every after 6 months. if I have more cash why not buy more?
---
Good plan? pls let me know what you think. I am just a bit nervous as I am coming back to university this October 2011 and may lower my salary to cover my loans but I will still work as a part time while studying.
If property 2 & 3 kicks off and rent, then I could breath a bit. thats why I minus £8500 to my refinance money just to cover 1 year, as property 2&3 are condotel 2 bed loft and still are right now ongoing construction until aug.. 2011. can be delayed though.
Property 1 is already £240 cashflow but this will cover my new finance to pull out £14k to use partly for down, tenant to repay@ £200/ month, still + CF @ £40. may need to get £ to pay my property manager from my financing. but thats year 2012 when my tenant will finish contract so it shouldnt be a problem for now, otherwise I have some savings.
Thanks!!!
Long time reader and applying some learnings in my own little real estate world through experience. I am still a student and will go back to Uni this Oct. and currently working FT while investing in properties.
Can I ask for your opinion? What do you think?
I am thinking to buy a property In UK and wonder do you think if it is achievable in my certain condition. I think I could but I wonder if it is realistic or if I am way too over my head.
Properties Cashflow +-
1. Studio Flat Overseas: currently let and CF @ +£240 per month
2. 2 bedroom loft: Currently on construction negative CF@ -£275
3. 2 bedroom loft: Currently on construction negative CF@ -£275
Can pull out Cash: Re financing
Property 1: + £200 monthly rent CF; + £14,000 refinance.
(I am on the process of refinancing the 1st property and can get: +£14,000
and get the tenant to pay £200 my repayments on my new mortgage.
property is fully paid btw)
Property 2 & 3. off plan. but will finish this August 2011, can be delay.
-CF: - £870 (- £550 bank finance + -£320 student loan (used for DP) )
Pull out (Refinance Total contract price): + £13,000
£ need for Turnover total approx: - £ 8,500
Total turn over need: £8500
£ 2500: need for turn over
£ 6000: need to cover for 1 year incase can't get rent (worst case scenario) as the 2 bedroom loft x 2 is in country side: will run as: Condominium - hotel, takes time to take off.
Current debt: £320 student loan repayment use for DP, monthly salary can cover
---
SUMMARY:
Need DP london property: 30k to 40k @ 200k worth property with 20% discount goal
Money can raise for UK DP:
£14,000 (property 1)
£13,000 (Property 2)
---
£27,000 total
Minus:
£8500: property 2&3 expenses
£1500: personal expenses ( tuition fee + holiday) this oct. 2011
-----
£ 17,000: left
£ 23,000 (need to raise)
The rest can borrow. or Mum can provide share to buy a property to rent.
OR Can borrow personal loan @ 300k monthly repay.
---
Research:
Im doing my due diligence, know the area I wanted to buy in London, research through 100 + properties and down to 10 to view and buy 1 hopefully before mid year. I also researched the demand in the area, did some advertising to test if people are looking for that area to rent, contacted estate agents and I think Im ready for viewings.
Although I am still looking at 2 more areas just incase I got stuck up at current area incase offers cant go through or cant have discount I need.
------
Plan:
1. Buy before end of year. Cash flow target £350 - £400/ month, use to repay my student loan so that can take off my salary if mum join me for deposit.
OR
Buy end of year. Cash flow target £400/ month, use to repay loan for the ther part of DP. Salary to repay student loan.
2. Make sure I have 20% goal discount on London property I will buy so I can pull out equity after 6 months to buy another property to cover my student loan.
3. Buy another every after 6 months. if I have more cash why not buy more?
---
Good plan? pls let me know what you think. I am just a bit nervous as I am coming back to university this October 2011 and may lower my salary to cover my loans but I will still work as a part time while studying.
If property 2 & 3 kicks off and rent, then I could breath a bit. thats why I minus £8500 to my refinance money just to cover 1 year, as property 2&3 are condotel 2 bed loft and still are right now ongoing construction until aug.. 2011. can be delayed though.
Property 1 is already £240 cashflow but this will cover my new finance to pull out £14k to use partly for down, tenant to repay@ £200/ month, still + CF @ £40. may need to get £ to pay my property manager from my financing. but thats year 2012 when my tenant will finish contract so it shouldnt be a problem for now, otherwise I have some savings.
Thanks!!!