Profiting from Property

11 February 2011

Phew! I feel really full. Today I have had numerous cups of tea and about three slices of the most delicious cake. All courtesy of the upstairs tenant, Eva. She has been a star and has been visiting regularly - always with something to make my day a little easier. She never gets in the way or interrupts, just puts the cake and the tea down on my workbench gives me a wave and off she goes. Brilliant!

I did have a bit of a chat with her the other day and it seems she doesn't work. I guess she might be retired so having someone around to look after really makes her day. It makes mine too. I am definitely not complaining! I am trying to make it clear to Chris that he needs to consider her needs when he gets tenants for this place. He says it is first come first served...Hmmm.

So all the added energy is really helping me to plow through the work in this flat. Of course I am taking a similar approach, but thankfully the flat is in slightly better shape than the top floor one was. Still needs a new kitchen and bathroom though. I am also putting in a built in wardrobe. Just one of those off the shelf ones – no pun intended - but without it the storage is zero.

The downstairs flat is going to have a more high-end feel to it as it has its own garden. Chris wants to let it for a premium so I am having to source some pretty cool appliances, tiles and even wallpaper. It is nice to have a bit of extra money to spend.

Speaking of money, Claire and I have been discussing what we should do with the savings we have at the moment. With the current interest rates, we are making next to nothing by leaving the money in the bank. Claire has pointed out that you have to speculate to accumulate and I agree, but I am the cautious one. For me, having a nice nest egg in the banks makes me feel secure.

So Claire has said that we need to use the skills we both have to build that nest egg into a small fortune. She has suggested getting a property and doing it up ourselves. We would have to get a small mortgage, but if we bought at auction we could afford a nice little two bed close to home.

I am having nightmares about this idea. It would mean weekends and long nights for me to get it into a good state. We would probably have to rent it out due to the poor market and I have seen what renters do to their properties...and worst of all we would be stuck with two mortgages in the meantime. If Claire was working it would be more doable.

But the positives are that I should be using my skills to my own advantage not so other people can earn good money. Claire can use it as a project for her landscaping and now is a good time to buy. Things can't get much worse for the house market. Also mortgage rates are currently low and they won't stay that way.

This is something I need to think about very carefully. Do I stay comfortable and have to do this for the rest of my life or do I take a chance and maybe build a business which could really take us to new heights? Right now, the comfortable option seems like a good one.