To ask, how would you invest £5000 for quick and good returns?(4 Posts)
I watch Homes Under the Hammer and dream of being a property developer. My credit score is terrible, I'm working on it but cannot sit around waiting for the old bad stuff to drop off in another year or two.
I've estimated I could save 5k this summer but circumstances wouldn't allow me to save for longer (work peak season), it might cover a small deposit on a small flat but if I would have nothing left to do it up with to increase its value!
So what else could I start with, any ideas?
The problem you have is you would need a buy-to-let mortgage not an ordinary residential one, which usually require 25% deposit and have, if anything, more stringent credit checks attached to them than a residential mortgages. I know this because for complicated personal reasons I ended up as a buy-to-let first time buyer a few years ago.
Although I know £5000 is a fortune to many people, in investment terms it's very little to be honest and not the kind of amount that is going to make you big returns in a short time. I saved up closer to £25k to buy my property. You need to be patient, save up a lot more, and get your credit check in order before you go down this route.
Also a word of warning - the way things are on Homes under the hammer is a fantasy. I spent a lot of time and a fair bit of money doing up my place, but after tax (because I am more honest than a lot of landlords!) I still fall just short of covering the mortgage, and as the housing market is slowing down I risk negative equity. I don't regret my purchase because I wanted the security of my own house - my DP owns the house we live in - but it's far from a get rich quick scheme. The only people making serious money from property at the moment are those who had serious money to start with and have large portfolios.
I watch Homes Under the Hammer and dream of being a property developer.
Are you a builder? If not, put those dreams away.
Gone are the days of Sarah Beanie when naive people could buy a property, do it up, spend way more than expected and still make a profit.
Building work is £££ and unless you are going to do the majority of work yourself (preferable evenings and weekends to keep earning) it isn't the game for you.
Ok so any suggestions on alternative ways to grow 5k?
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