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Also posted in property - help!

(6 Posts)
Eachpeachpearwherestheplum Mon 17-Feb-14 20:20:33

Dh is a builder in his 30s with no pension. He is really talented and wants to do something to make more income and create a pension pot.
We are able to release equity from our own home and get another mortgage for up to around £250000.
We have see a house for £145000 that is in a very grim area but gains £765 per month in rent. Done up the estate agents think it would sell for £165000 max now.

Because of the area we would have to have it managed and after that cost and the cost of taking the equity out, we would be only gaining about £250 a month.

We could do the work in around a month and sell it straight away. But would only gain about 6k.

We could turn it into flats but every agent I speak to says they are not ideal conversions and hard to sell, but they are being marketed at 120k for down and 80k for up. But they are yet to sell!

We really want to use his skills and do something

Help any ideas!

Viviennemary Mon 17-Feb-14 20:23:47

If I had the money I think I would invest it in property. Why not look at other areas where property will hold it's value. You needn't even live near if you get an agent to manage it. I'd think carefully about buying a house in a grim area.

Eachpeachpearwherestheplum Mon 17-Feb-14 20:30:01

It just seem you have to buy really low and rent high to make it work.....hence grim area......but I am worried about this!

Clutterbugsmum Mon 17-Feb-14 20:32:38

I think a lot more research is required before rushing in.

BonaDea Mon 17-Feb-14 20:34:38

Don't buy in a bad area. The idea is good but I would invest in a better area.

The house will only be worth what someone is willing to pay and in a bad area would anyone want to pay???

Eachpeachpearwherestheplum Mon 17-Feb-14 20:41:23

The problem is anywhere else is then into 170k and flats.....then the rental is lower?!?! Around 500pcm and so harder to cover the mortgage.
It's so hard! DH is getting really down about it sad

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