Hey guys. So I’m hoping some experienced heads on here might be able to give me a few pointers and let me know if it’s a wise choice to go ahead with what I’m considering.
Basically I’ve been working my current job as a self employed driver for around 8 years now and while the money isn’t spectacular by any means, it’s solid enough to have enabled me to buy a decent 3 bed semi in one of the nicer areas in town up here. During the 5 years I’ve owned the property I’ve taken it almost back to brick in every room, brought it back to new condition and have built up quite a lot of equity in the house by adding value and decreasing my mortgage.
As it stands right now I owe around £97k on the mortgage which is due to run another 30 years or so (I’m 35) and it’s worth anywhere between £180-200k in terms of realistic market value.
The problem is that I feel so stale in my current job. My income is pretty much swallowed entirely by my considerable outgoings, including a loan and a couple of credit cards which were used to fund the renovation works and materials for the house. It’s become very difficult with the extreme pressure to earn just to pay the bills.
With that said, I do love the house and the area where I am right now. However I’m looking at potentially selling to release the equity I’ve accrued over the last few years in order to flip property as a second income, which would allow me to step back into a part time capacity in my current self employed role as a driver. My parents have already said they’d be more than happy for me to go back and stay with them while I get this off the ground which, although by no means my ideal scenario, would be a welcome relief from the financial pressure I’m feeling.
My question is whether this would likely be a wise move, or whether I’m better staying where I am and continuing on the path I’m currently on. With the equity release of £80-100k after fees etc are paid I feel like I could get a very good start in developing property without having to borrow anything. I have a lot of tradesmen as friends, they’ve been excellent in helping renovate my current house and I’m sure would welcome me throwing a lot of work their way if I decide to pursue this new venture.
I should point out that I’d be purely looking to buy, renovate over the course of 4-6 weeks, list for sale and take the profits. I know a lot of developers like to build up a portfolio over time and rent them out but I’ve heard way too many horror stories and don’t want to expose myself to the risk of bad tenants. It might well be something I’d consider in the future but right now I’d be more than happy potentially making £20-30k pre-tax profit every few months.
Would really love some advice as I’ve been mulling this over for a few weeks now and don’t seem to be any closer to a final decision. Remortgaging is currently off the table in terms of affordability with my outgoings being what they are. It seemed the sensible option but after being knocked back by my current provider it looks like it’s all or nothing and I’m either going to have to take the plunge or leave it be.
Sorry for the long post and thanks in advance for any advice.
Basically I’ve been working my current job as a self employed driver for around 8 years now and while the money isn’t spectacular by any means, it’s solid enough to have enabled me to buy a decent 3 bed semi in one of the nicer areas in town up here. During the 5 years I’ve owned the property I’ve taken it almost back to brick in every room, brought it back to new condition and have built up quite a lot of equity in the house by adding value and decreasing my mortgage.
As it stands right now I owe around £97k on the mortgage which is due to run another 30 years or so (I’m 35) and it’s worth anywhere between £180-200k in terms of realistic market value.
The problem is that I feel so stale in my current job. My income is pretty much swallowed entirely by my considerable outgoings, including a loan and a couple of credit cards which were used to fund the renovation works and materials for the house. It’s become very difficult with the extreme pressure to earn just to pay the bills.
With that said, I do love the house and the area where I am right now. However I’m looking at potentially selling to release the equity I’ve accrued over the last few years in order to flip property as a second income, which would allow me to step back into a part time capacity in my current self employed role as a driver. My parents have already said they’d be more than happy for me to go back and stay with them while I get this off the ground which, although by no means my ideal scenario, would be a welcome relief from the financial pressure I’m feeling.
My question is whether this would likely be a wise move, or whether I’m better staying where I am and continuing on the path I’m currently on. With the equity release of £80-100k after fees etc are paid I feel like I could get a very good start in developing property without having to borrow anything. I have a lot of tradesmen as friends, they’ve been excellent in helping renovate my current house and I’m sure would welcome me throwing a lot of work their way if I decide to pursue this new venture.
I should point out that I’d be purely looking to buy, renovate over the course of 4-6 weeks, list for sale and take the profits. I know a lot of developers like to build up a portfolio over time and rent them out but I’ve heard way too many horror stories and don’t want to expose myself to the risk of bad tenants. It might well be something I’d consider in the future but right now I’d be more than happy potentially making £20-30k pre-tax profit every few months.
Would really love some advice as I’ve been mulling this over for a few weeks now and don’t seem to be any closer to a final decision. Remortgaging is currently off the table in terms of affordability with my outgoings being what they are. It seemed the sensible option but after being knocked back by my current provider it looks like it’s all or nothing and I’m either going to have to take the plunge or leave it be.
Sorry for the long post and thanks in advance for any advice.