London flat for £37,000 #shorts #property #ukproperty

London flat for £37,000 #shorts #property #ukproperty

[sunnyjeet]

Since you took mortgage from 2nd bank of £256, 000 and now you are left over with 76K, you now owe £180K to the 2nd bank or else they will take your flat.

Btw, 1st bank gave you 180K while holding 75% ownership..and you now ended up having to pay 180K to 2nd bank who owns 80% of your house.

In end you still owe bank 180K while you losing 5% of ownership then previous.

[estasquecrujes]

bought for 240k + 54k investment, now worth 320k i.e. 26k gross profit on paper.
Sure, the hit to your CASH FLOW is 37k in the end. Cash flow is not profit. You still have a mortgage to pay.
Plus you omitted:
- stamp duty 3% if you own more than one property. That's 7.2k.
- solicitor and surveyor costs, probably c. 2-3k.
- mortgage interest while the building work takes place, probably another 2-3k.
Basically, as a property developer you put in months of work and took on a lot of risk to end up with a net profit before tax of c. 15k. Not bad I guess.

[MQureshi]

Horrible maths mate. Would love to do business with you.

[DelroyJ]

Stamp duty+early redemption fees+CGTyou missed a bit out there blud