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If time is money, am I doing the right thing?

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elusive97

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Achieved my goal of buying a house 5 years ahead of my goal a couple of years ago. Lost my prev business around the same time and didn't realise how huge the renovation was.

I bought the house on the basis heating and electric were working, they weren't, that the structure was stable, it wasn't, and that it only needed a small cosmetic renovation - I literally budgeted £5-10k.

Instead, after spending £10k I had no completed rooms, and because houses in the UK are sold 'as is' , even after spending a further £3k the house is still mid-renovation. Meaning, the only way I could sell realistically would be at auction where I'd get about half of what I spent on the renovation so far and the house cost.

Basically, I bought a house that needed a lot of work for the price of a completed house. Every time I got something done, another two problems would arise. Hence why I live in a sh*thole!

Completing the house will take me down to just £20k loss, however I don't have the money or an income so my realistic goal is for that to be by the end of next year.

The problem with this is that I have another year without a car if I continue putting cash into the house.

I figured out I lose about 40 hours a month travelling (public transport here is despicable, but sometimes it's the only option, and Uber isn't much better).

Obviously a car is more expensive, and rent sucks, but if I sold at auction I could channel those hours into work, and I'd even have over £20k saved after a year of rent and the car/insurance to invest into business.

On the other hand, it'd take a while to get to where the 40 extra hours were worth the loss from the house!

I just feel so stressed and upset about my life from the past couple of years since buying this house. I worked from the age of 12 for this and it absolutely sucks.

I'm only 22 which my friends keep reminding me, but simply having a house doesn't make me feel better about anything when the house is incomplete and a huge burden, but also selling it means taking a massive loss that I worked really hard for years throughout school and college for.

Another alternative I thought of is asking a family member for £12.5k (what the builders need to complete the renovation) with a contract that once I sell the house I'll pay them back like £14/15k I guess to make it worth their time. I'm not close with my family though so this isn't a great option really.

How does everyone feel about this situation? What would you do? I hate things as they are now so I thought I'd see what every one thinks
 

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Last edited:

ZCP

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find a partner to update and sell the house where you do not have to be involved
... this lessens the loss
... and opens possibilities for future projects with them
... talk to 12 real estate agents and 12 contractors today
... then post in your version of craigslist
... do you have the 'we buy ugly houses' people there?

then find a gig to build your war chest while planning your next move

put your end goal / outcome on the wall and look at it twice a day
put some time into your health / fitness

you got this
 

Stargazer

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If you own the property then you can easily get a loan to pay for the builders, get it finished by summer and then you have the option of selling it, staying in it or renting it out.

Interest rates are rock bottom right now.

Why would you want to pay a builder well over £1k short term interest on £12500?

This is just the first one I keyed in as I think you wrote somewhere you are in Yorkshire (nt that that is relevant your own bank will be favourable to you as they can see your money in money out for last few years.

Change years to 1 as it defaulted to 4


Just in case I have not copied it correctly £12500 for 1 year at 3% would be approx £200 interest.

Dan
 
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elusive97

elusive97

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Nov 28, 2019
270
297
155
Yorkshire
find a partner to update and sell the house where you do not have to be involved
... this lessens the loss
... and opens possibilities for future projects with them
... talk to 12 real estate agents and 12 contractors today
... then post in your version of craigslist
... do you have the 'we buy ugly houses' people there?

then find a gig to build your war chest while planning your next move

put your end goal / outcome on the wall and look at it twice a day
put some time into your health / fitness

you got this
This is actually super useful. I'm not sure if we have those people here, but even if so they'd likely just go to auction as they're so easy here in the UK. Maybe someone else knows otherwise though?

How would I go about finding a partner? Just Craigslist and local listing sort of things? I'm not worried about finding a contractor or selling (slight unease about Brexit, although if property prices go down across the board I could get a bargain in Scotland haha)

How can I go about finding what sort of return would interest locals?

Thanks for the advice I really appreciate it ZCP :)
 
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elusive97

elusive97

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Nov 28, 2019
270
297
155
Yorkshire
If you own the property then you can easily get a loan to pay for the builders, get it finished by summer and then you have the option of selling it, staying in it or renting it out.

Interest rates are rock bottom right now.

Why would you want to pay a builder well over £1k short term interest on £12500?

This is just the first one I keyed in as I think you wrote somewhere you are in Yorkshire (nt that that is relevant your own bank will be favourable to you as they can see your money in money out for last few years.

Change years to 1 as it defaulted to 4


Just in case I have not copied it correctly £12500 for 1 year at 3% would be approx £200 interest.

Dan
I seriously had no idea about that possibility, I've never had any sort of credit! I have always just bought things outright

How do I deal with the monthly repayments, surely I'd rack up large fees by not being able to keep up with them?

What's the likelihood of getting a loan when I've never had a mortage/loan/credit card? On top of a very low income, it doesn't seem likely. I'll check the link soon, thank you for the advice!
 

ZCP

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This is actually super useful. I'm not sure if we have those people here, but even if so they'd likely just go to auction as they're so easy here in the UK. Maybe someone else knows otherwise though?

How would I go about finding a partner? Just Craigslist and local listing sort of things? I'm not worried about finding a contractor or selling (slight unease about Brexit, although if property prices go down across the board I could get a bargain in Scotland haha)

How can I go about finding what sort of return would interest locals?

Thanks for the advice I really appreciate it ZCP :)
So many questions. So little action.

Pick ....... up ....... the ........ phone.
Make calls, send emails, linkedin message, skype .....
Then report back
 

ZCP

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Read Millionaire Fastlane
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Woodstock, GA
This is actually super useful. I'm not sure if we have those people here, but even if so they'd likely just go to auction as they're so easy here in the UK. Maybe someone else knows otherwise though?
How would I go about finding a partner? Just Craigslist and local listing sort of things? I'm not worried about finding a contractor or selling (slight unease about Brexit, although if property prices go down across the board I could get a bargain in Scotland haha)
How can I go about finding what sort of return would interest locals?
Thanks for the advice I really appreciate it ZCP :)
[Take this the right way in that I am working to help you get better. Mainly because I like your enthusiasm!]
I will reword your post above as to how it could be taken:
... I normally ignore all the advice and effort you have put into me, this almost looks like a step by step, so awesome! Here's an excuse or reason it won't work. Could someone else make this step by step easier while I sit on the sidelines and come up with 'why can't i' instead of 'how can i'? could you do the rest for me too? i have superior knowledge and connections, just need you do do everything for me. i REALLY want this, as long as i don't have to do anything. i'm all about me and appreciate your making me the center of all you do!
[Love, ZP]
 

Stargazer

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If you have internet you were credit checked.

If you have mobile phone on contract you were credit checked.

They are interest free loans if you did not know hence the fixed minimum terms. That is the loan bit.

I have no idea what your finances are like but your bank does so just walk into the branch and ask about loans.

If you are saying you definitely only require £12.k and you own your property outright you are not that much of a risk.

How long will the builders take if they were paid to crack on?

Ask a couple of Estate Agents what your property would likely fetch once finished to whatever standard you are aiming at.

Election will be on Thursday, hopefully Boris wins outright so he can get Brexit started in January then next year the uncertainty of the last 3 years will finally be gone.

The £ is already rising as the Market expect the win and Foreign Investment will start flowing in big time again.

So late spring/ early summer should be a target for you to get the house finished.

That is the key selling months.

Right now nothing shifts much anyway due to Xmas/NY and an Auction should be last resort.

I am assuming though that the house is reasonably 'normal' that your average singleton/couple/family whatever size it is will want once finished.

If it has more than 1 bedroom you can rent out to a friend which would cover most of the repayments, certainly the interest would be covered on less than one month. Even over 3 years it would only be £600ish (couple of month room rent)

Dan
 
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elusive97

elusive97

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Nov 28, 2019
270
297
155
Yorkshire
If you have internet you were credit checked.

If you have mobile phone on contract you were credit checked.

They are interest free loans if you did not know hence the fixed minimum terms. That is the loan bit.

I have no idea what your finances are like but your bank does so just walk into the branch and ask about loans.

If you are saying you definitely only require £12.k and you own your property outright you are not that much of a risk.

How long will the builders take if they were paid to crack on?

Ask a couple of Estate Agents what your property would likely fetch once finished to whatever standard you are aiming at.

Election will be on Thursday, hopefully Boris wins outright so he can get Brexit started in January then next year the uncertainty of the last 3 years will finally be gone.

The £ is already rising as the Market expect the win and Foreign Investment will start flowing in big time again.

So late spring/ early summer should be a target for you to get the house finished.

That is the key selling months.

Right now nothing shifts much anyway due to Xmas/NY and an Auction should be last resort.

I am assuming though that the house is reasonably 'normal' that your average singleton/couple/family whatever size it is will want once finished.

If it has more than 1 bedroom you can rent out to a friend which would cover most of the repayments, certainly the interest would be covered on less than one month. Even over 3 years it would only be £600ish (couple of month room rent)

Dan
Sadly my own bank can only offer loans to £5k and I did a search of 20+ lenders and none would be able to even potentially offer me anything. 0% acceptance chance!

Thankfully one of the few good things about the place is that it's normal :rofl: I just hate it because it's personally cost so much money unexpectedly and it's totally ruined the place for me. The buyers are so lucky!

I'm not really interested in renting as the fencing will need replacing in a couple of years, roof within several, etc. I refuse to let this place take any more money than the interior refurbishment haha.

I have quotes from builders for £10-11k, £12.5k is the absolute max I'd need and would definitely cover everything. They could start within a few weeks and finish within two or three weeks. So I could definitely I'm probably just going to be a crazy person and try get my offer in front of local people. I'm not sure how it'd work but I could guarantee they'll get their money back after the house sale, if I give them £1k extra back on top of their money, 8% returns within 6 months isn't bad.

Thanks for the advice, and I hope Corbyn doesn't win and crash the property value :happy:
 

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