Purchase, Refurbish, Re-mortgage – Then do it again!!

I thought I’d share with you our buy to let strategy which helps you re-cycle your deposit and therefore allows you to continue purchasing...

I thought I’d share with you our buy to let strategy which helps you re-cycle your deposit and therefore allows you to continue purchasing property.

It’s quite easy and like lots of these things it’s not rocket science!

We’re always looking for properties which look “cheap” in comparison to others around them. This could be because the property is mis-priced, requires refurbishment work or simply needs a little updating. The easiest way to make money in property is the price you purchase it at NOT the price you sell it at.

By looking for opportunities when buying, it may enable you to recycle your initial deposit, refurb and buying costs when you refinance. This means tying up as little money as possible, allowing you to continue expanding your portfolio.

So here’s an example of a property we recently found:

Agreed Purchase Price £64,000

Refurbishment Cost £17,000 – You can see why in the photo’s below:

Before Renovation

After Renovation

Re-Valuation 6 months later: £95,000. If you re-mortgaged this property at 85% LTV – this would mean your new mortgage was: £80,750 – meaning you pulled out all your purchase costs and refurb costs – so you could purchase again!

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