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  • New Members

    An intro, to me and my property!

    I'm 24 years old and got my first property in September 2018. It's a 4 bedroom, 3 storey terraced house in the centre of Plymouth. I decided to live in the house while renovating to allow me to see things from a tenant’s point of view and adapted things along the way, with a complete cosmetic overhaul too. I'm in no way handy at anything so my best friend who has lots of experience in properties helped - which was a godsend!

    I am currently short term letting through Airbnb, which is going great so far, although I happened to be quite dubious at the beginning. It’s been bit of a hit and has been booked solidly from January to August. Apparently, there isn't much of a short term let market in Plymouth city centre for a property that can host up to 7 guests.

    In September I have decided to let it to students, as my best friend’s cousin owns one of the biggest student management companies around here, told you he was a godsend! After being out on the market for students, it took 17 days for it to be confirmed rented for the 2019/2020 academic year, which took me by surprise.

    I may have to buy my own personal property in Bristol in the next few months subject to a potential promotion at work. I ideally want a second investment before I have to start paying for my own mortgage (yes, I still live with my parents, I am incredibly fortunate to be able to be in this position still) so I'm trying different ways to raise the cash.

    I’m currently stuck in a quandary and don’t know what to do so your advice would be most appreciated:

    I purchased for £130,000, added £3,000 into renovations and had it valued last week at just over £160,000, to my amazement! I have decided to put it on the market out of curiosity to see what offers I receive. Half of me doesn’t want to sell and the other half does. What do you think would be the next best steps for me to raise capital? Good investment properties for students don’t come up often in Plymouth, it took me a year to find this one!

    Do I remortgage in 2 years and use that equity? Do I sell now and try to buy two more properties if they come up? Do I stop worrying and go relax, get drunk and take a holiday because I’m 24 and am extremely fortunate to be in this position?

    I may have bored you and I apologise but I definitely look forward to talking to some of you in the future.

    My dream goals: To be financially free at the age of 40, maybe even to live and have a small beach hut serving cocktails in a warm country whilst living off my rental income and if I'm lucky small profits from the cocktail bar.

    -Wesley

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    First of all, well done you. Great work,

    Me personally: don't sell. Sounds like you have a property that will provide good return and capital growth.

    One question; Why are you waiting to refinance after 2 years?

    Is the property unencumbered or is there a mortgage already?

    And you can still go and relax, get drunk and take a holiday. (Not that I am encouraging you to drink!)

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    Richard, thanks for replying!

    There's quite a hefty redemption fee, which is one of my pitfalls when taking out the mortgage. One to chalk up and learn for the next one.

    Haha unfortunately I don't need much encouragement!

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    No problem Wes.

    Have you a mortgage broker. If so speak with him.

    When I say refinance, I am talking about going back to the lender and requesting a further advance. So they provide additional funds on the additional equity.

    So approx 22,000.

    Am neither buddy.

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    I'll definitely have a word with them, thanks very much for the advice.

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    Hopefully that will do the trick my friend. Let me know how you get on.

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    I would keep the property - its obviously generating income so use that & whatever you can from your employment to save. You are in a fantastic position already. Really well done!

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    Thanks jowo and again thank you Richard.

    Unless I get offered something silly like £170,000 for the property then I won't sell it, will keep for two years and try to release some equity.

    Thanks for your praise too, fingers crossed I can get another on the go soon!

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    Hi Wesley and welcome to the tribe.

    What a wonderful story and congratulations on what you have achieved at such tender years!

    Why on earth would you want to sell though?!

    There are significant costs involved in selling a property, including tax implications.

    Think of your property like a tree.  Don't cut it down!  Take a clipping (equity release) and use that to grow additional assets.

    You don't have to wait two years to realise equity from the property.  You can ask your lender for a "further advance" or take out a second charge mortgage.  The team at Property Tribes Financial Services on 01206 654444 would be pleased to advise you on this.

    One word of caution though - you have mentioned using the property for different types of lettings activities.  You need to ensure that you have the correct mortgage product and insurance for the type of activity you are undertaking.  If not, you open yourself up to significant business risk.

    Sorry to say, I also think you are wrong to have accepted a tenancy for a year from students and now put the property on the market.  That's not really fair on them imho and if they saw it on the market, I think they would be right to be upset and worried about their tenancy.

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    Hi Vanessa,

    Thanks for taking the time to get back to me, and for the advice too! I'm definitely going to give them a call. I also have all the right insurances and mortgage products.

    In regards to the students, I've spoke with the letting company and have said that if anyone were to buy the property they have to honour the contracts for 2019/2020, otherwise I would reject exchange.

    Thanks again! Smile



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    Hi Wesley,

    It was lovely reading what you have accomplished so far! I think you need to consider what is best for yourself. Do you want to sell the property, or do you want to keep it? What would be best for yourself in your current position? Both options are really good and could help you further with your goals. I am looking forward to seeing what you decide to do and how you continue with your property journey!

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