buying a property then remortgage

[nbaxter1]

Im trying to think how to build my portfolio up quicker and i was thinking would i be able to say buy a property 10 or 15 k below what it would be worth. Spend a small amount on decorating then remortgage to the actual value to basically get the deposit back to plough into another property.

[brian]

And what sort of profits do you think you would seriously make on just a £10-£15k investment? Have you seriously found a property selling for £10 in the UK? If so, how does your business plan of profits to loss compare?

[nbaxter1]

not sure you get where im coming from. Say there was a property 77k and i bought for 70k. put 7 k deposit 10% so mortgage is 63000 spend 2 to 3 k on property. Have it remortgaged to value say 90k and again get your money back you put in.

[brian]

Ah, sorry - I misunderstood - I thought you were looking for a 10-15k property.

However, with property prices in decline and sales volume also falling, you need to be very sure that you can sell the property at the target price after. It's probably not the best time to be investing in UK property right now.

2c.

[Richard Webster]

I agree with Brian - also if remortgaging lenders are now going to be very iffy about lending say 85% of 90K if you have only recently bought it for 70K. Logically in the present market if it was worth 77K when you bought it and you spent 2-3K on it then it will probably only be worth about 75K!

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

[stewy]

There are still ways out there to remortgage in one day of owning.I buy BMV property like this and hardly put any of my own money in.

[CasmarkNet]

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[paulkay]

I wouldn't recommend this strategy at the moment

[Lioncane]

I would agree with PaulKay, the market of lenders is constantly shrinking and you would also need to consider your turn around time as this would make a difference to the initial and subsequent lender you use, not to mention the possibility of early redemption payments.

[MarkT]

Hi

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Mark