Hi there,
Over the last few years I've had two opportunities which have involved obtaining a house in poor condition with X value, renovating for amount Y and adding pretty significant value Z.
In the one case the value added is notional (the house concerned is my PPR so the added value comes by way of what I could expect to sell it for, given other sales on my street). In the second case, the house was an inheritance and the added value is revealed by the recently sale agreed price - although the monies will divvied up among the family after deducting CGT so my own take is fractional.
Given that I appear to have the basic tools/passion required to do this successfully, the intention is to make this a full time occupation - setting up a company to make the whole thing more tax efficient. I don't have to make anything like the values added in the two cases above (after tax) in order to increase my income vs. my current career. Besides increased income, I want to move out of a career I've tired of.
When the sale of the inherited property closes, I'll have about enough money to fund the next project but the turnaround times (find/buy/renovate/sell/close) are such that it would take a few projects, carried out on consecutive basis, to build up enough capital to both finance the next project and allow me to leave my job with enough buffer money to live on whilst the project progresses. This isn't an attractive prospect: the effort involved in each project, although minimal when measured against the return, is rendered disproportionately substantial, tacked on as it is to a full time job and young family demands.
We own our home outright (value approx €350,000). Although we do manage to save, our bank accounts over the last couple of years look like a bowl of spagetti: what with having been used to fund one dilapidated house purchase (aided by the investment by a friend), two renovations, and a fire claim which saw us out of home for 3 months with money flowing out all over the place / claim money coming in. I know I should have separated everything out but it was really only after the first renovation that the idea of doing this full time germinated.
I've the potential to attract investors from a pool of family and friends but figure the cheapest (and least complex) way to obtain additional working capital is to remortage our house.
What are the prospects of my doing this (initial investigations indicate lenders willing to lend for PPR renovations/extensions but this isn't what I'd be using the money for). And what's the best way of going about it?
Thanks for any insights anyone might have.
Over the last few years I've had two opportunities which have involved obtaining a house in poor condition with X value, renovating for amount Y and adding pretty significant value Z.
In the one case the value added is notional (the house concerned is my PPR so the added value comes by way of what I could expect to sell it for, given other sales on my street). In the second case, the house was an inheritance and the added value is revealed by the recently sale agreed price - although the monies will divvied up among the family after deducting CGT so my own take is fractional.
Given that I appear to have the basic tools/passion required to do this successfully, the intention is to make this a full time occupation - setting up a company to make the whole thing more tax efficient. I don't have to make anything like the values added in the two cases above (after tax) in order to increase my income vs. my current career. Besides increased income, I want to move out of a career I've tired of.
When the sale of the inherited property closes, I'll have about enough money to fund the next project but the turnaround times (find/buy/renovate/sell/close) are such that it would take a few projects, carried out on consecutive basis, to build up enough capital to both finance the next project and allow me to leave my job with enough buffer money to live on whilst the project progresses. This isn't an attractive prospect: the effort involved in each project, although minimal when measured against the return, is rendered disproportionately substantial, tacked on as it is to a full time job and young family demands.
We own our home outright (value approx €350,000). Although we do manage to save, our bank accounts over the last couple of years look like a bowl of spagetti: what with having been used to fund one dilapidated house purchase (aided by the investment by a friend), two renovations, and a fire claim which saw us out of home for 3 months with money flowing out all over the place / claim money coming in. I know I should have separated everything out but it was really only after the first renovation that the idea of doing this full time germinated.
I've the potential to attract investors from a pool of family and friends but figure the cheapest (and least complex) way to obtain additional working capital is to remortage our house.
What are the prospects of my doing this (initial investigations indicate lenders willing to lend for PPR renovations/extensions but this isn't what I'd be using the money for). And what's the best way of going about it?
Thanks for any insights anyone might have.
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