Financing first property

[westy84]

Hi, I was just wanting a bit of advice from people in the know. I am soon to start working with a friend of mine developing properties, he is a qualified joiner, and I am a plumber and also do plastering and tiling. We are looking at buying a first house at only around £75,000 to see if we can make the business work, the problem we have is that we only have £40,000 equity between us tied up in our current houses which we both need to keep. What I was wanting advice on is what the best option would be (if any) to fund the first house; business loan, mortgage or alternatives. This would also need the ability to fund a second house that could be bought whilst the first house is being sold, as this would be our full time jobs. Any advice would be appreciated, thanks.

[Kaz]

Hi

You need to speak to a Financial Advisor who will be able to go through all the options with you to find the best one.

I would advise you both to fit the project in around your current jobs i.e. evenings/weekends, at least for the first one as you'll need the money and you need to know that you can work together.

I would recommend buying from an auction, as long as you don't go over your agreed limit but make sure you view it and read the legal pack first.

Also, have a chat with your local Estate Agents and see what type of properties are selling in the area. You don't want to buy a house if only flats are selling. Although I think it's more likely to be the other way round.

Good luck and let us know how you get on