Jump to content

Recommended Posts

Hello & Happy New Year to you all!

I am considering the Buy, Refurbish & Refinance strategy and in this scenario would be using a bridging loan for the purchase (along with my own savings for the refurb). 

Whilst I know predicting the market is nearly impossible, I would like to be able buy with some confidence that the local market would be in a good position in the short term so I could continue with my strategy and refinance, pay the bridging loan off and pull out some (or hopefully all) of my money.

Are there any market indicators I should be looking for? Is there ever a "right" time, or is it best to just go for it as long as the fundamentals are there in my chosen area?

I am wondering if anybody with experience in this strategy could give me some advice?

Thanks a lot, and happy investing!

Ed.

Link to post

Assuming you are fully aware of the risks in using bridging - especially in a flat/declining market then its all about buying below market value. Its really hard to time the market and there is as much likley hood of getting it wrong than getting it right. I decided to sit out this year as expected covid/etc to hit the market and wasn't expecting the dramatic increase in people buying property. At the same time I did keep an eye out in case a good  deal came my way but the market has been so competitive that i hardly saw any deal that were attractive to me and my strategy. I did sell a property so did pretty well on that side at least. I am still looking and hope the cooling of the market now will show up some deals at auctions etc but ver hard to predict. Personally, i could do with the govt not extending stamp duty etc and encouraging growth in house prices but who knows.

The other factor has to be how importan the property business is to your income - if its a major part then there is no question of waiting around for price decreases. My advice would be to look for deals now and go ahead if something looks attractive.

Personally, I am not a fan of bridging but I can understand when its the only option available..

Good luck

 

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...