Any potential advice?

Question

I have been blessed with a unique situation where someone in my family has given me the chance to inherit a property under the circumstances I repair it's damages myself (costs around £10k-20k) it is a 1 bedroom flat in west London and I've been looking to save for the repairs by working this year until march. Being 18 I would like to start young and would request any advice that can be given on this matter in terms of what to do (am I going about it correctly). Thank you.

Account Closed · Answer

That sounds like a great deal!  However, it sounds like the catch is that you need to put the money in first for a property someone else owns, then once it is all completed, you will get ownership.  Sometimes, when it comes to family and money, things can get ugly fast.  My advice I would give you, if your serious about future real estate business deals would be to create some sort of contract.  What constitute repairs required for you to take ownership of the property?  I try and lay out a contract and so long the repair items listed in the contract have been completed, then ownership shall transfer to you.

However, since this is family, it can be difficult.

David Sisson · Answer

So, if you can get a flat for free in London, that only requires 10-20K, then DO IT!!

I don't know your skill or experience level with fixing things. I don't know what this property needs.

I'd say, don't spend any $ to fix it until you own it.

then, once you own it,

1) Live in it.

2) Hire someone to fix the stuff that's broken

3) Fix anything that you can fix yourself

4) house hack it if you can, otherwise you have a REALLY cheap place to live

If you don't have the $ to fix it yourself, you need to get some sort of loan to fix it. This should be easy once you OWN IT, because you can get a 10-20K loan against the equity of the apartment. Your monthly cost for the loan is VERY cheap, so don't worry about that.

I don't live in London, but my BIL does. Units are SO expensive there, that 10-20 is a huge bargain to get one for essentially free.

Because you are 18, if this sounds complicated, feel free to reach out. I'm a bunch older than you, but I wish I'd done this at your age.

Ismail Akbar · Answer

Thank you for you reply Brian.

I will definitely take your advice on it - and your right in the sense it can get ugly fast. Having a contract 100% seems to be the safest option.

Ismail Akbar · Answer

Firstly I would like to thank you for your response.

In terms of living in it - I wouldn't mind but my parents are getting quite old and don't have much income at all. For that reason my aim would rather be to stay where I'm currently living (with them) which is also in London and start working to pay the bills.

As far as the property i want to repair, I agree with your advice on repairing it myself at first and then pay for anything I cannot do. I will definitely apply that to when I do have the money for the repairs. One example of the issues with the place is a broken central heating system.

In all, living in it may not be the number one choice as I would rather sell or rent it as of now? For the reason that I will need to help parents at home financially. (Also the property I am looking to repair is my Fathers and he said "once you have the money for repairs and can prove your serious you can have it"). I really believe this may be my first step towards achieving my goal in real estate is there anything you can advise me on? Thank you.