This site is best viewed
 full screen

Property Pension Club

Do you know what is better
 than 'buy to let'

 Click here to find out

Home page

Site map


About the club

Membership

Club services

Other clubs

Contact us


Pensions

Buy to let

Overseas property

Self  build

Commercial

Area studies

Publications

Newsletters

Reference


Local groups

 

Website problems!!!

All the pages on this web site should load, with the exception of external links in the reference section which are beyond our control.

If you have a problem with a page - please click here.

 

Email Problem.

We are aware that some emails that are forwarded to AOL accounts have not been getting through. This is not specific to this website but a problem many are having.

If you have emailed us and not had a reply after a few days please send your email again directly to videoarchitect @ aol.com and we will make sure it gets to the right person. (Note no space before and after the @ in email addresses )

 

Getting rid of the mortgage

Back to self build section

One means of utilizing the large equity that can be gained from build to let or self build is to allow mega growth, so much return, fuels so many more at an ever increasing development rate.

The other alternative to mega growth is to go for eliminating mortgages, so how is this done, well its not that difficult to see with an example. Let us assume 

  • That houses cost £200,000 in your area
  • That self build houses can be built with a saving or discount of 40%, so it cost you £120,000
  • That property in the area stays at the same price over a number of years
  • You are starting with just enough for your deposit and club subscriptions
  • We are disregarding mortgage payments to keep the explanation simple
  1. Now you self build the first house with a saving of 40% you spend £120,000, using a 95% mortgage
  2. You move into this Home (home1)
  3. You self build a second home again with a mortgage of 95% again costing £120,000 to you including the mortgage.
  4. You move out of home 1 to the new home (home 2)
  5. You sell home 1 for £200,000 pay off the mortgage and keep the £80,000 over
  6. You self build home 3, this time you need a mortgage for only £40,000 as you have the £80,000 profit from home 1
  7. You move to home 3
  8. You sell home 2 making a £80,000 profit
  9. You use the profit to pay the mortgage off of house 3, and have £40,000 over
  10. You now have a home and its all yours no mortgage as well as £40,000 profit still towards starting on your holiday home.

Now some notes and fine tuning, 

  • There is no tax on these profits, as you lived in each as your main home for a period.
  • Property has always gone up in price so you will get windfalls due to owning each of the homes over an overlap period even accounting for property prices and costs increasing.
  • From the time home 1 was complete you had equity so could have remortgaged or borrowed against it to help balance the books if you wanted to.
  • Homes 1 and 2 were being built to sell so you should be able to maximize the gain on these and make well over the average 40%.
  • As homes 1 and 2 were not for your own long term use finding the plots on these was not so critical and so moving on with these can be achieved faster than perhaps you would if they had been your long term home.
  • It gets easier and more profitable as you gain experience.
  • Most people grade up, by that I mean they get a larger home on each move.

Time scale

  1. Join the club to getting first house started say 6 months
  2. Build house 1 say 8 months, towards the end start looking for plot 2
  3. Find plot 2, may already have been found but lets assume it takes 4 months
  4. Build house 2, say 8 months, towards the end start looking for plot 3
  5. Find plot 3, maybe already found but as it assumes here to be your long term home lets assume you take a long time say 8 month
  6. Build home 3 say 10 months, you are a little more critical and have to wait for some special parts.
  7. Total time 6+8+4+8+8+10 = 44 months, just short of 4 years.

Other options

Starting with a cheap home and moving up over 4 or 5 steps you can start with limited ability to get a mortgage (maybe affordable home) and end up with a manor house, mortgage free.

 

Common section on all pages

Property Pension Club Ltd is registered in England and Wales no 4197351. 

Initial enquiries to arrange appointments or in relation to any member service can be sent to ppc @ start-page.org. (there should be no spaces before and after @, we show them here to try and stop our emails being flooded by robots). If you don't get a reply within a few days please call the clubs main number on the contact us page. There have been some problems experienced from time to time where emails get lost, and is not connected with our systems, but larger email handlers routines that edit out emails coming through some mail servers in error. 

The Property Pension Club was established by New Atlantis, a non profit company limited by guarantee, with its prime objective to improve the life of its members. Services and administration is managed by Maximum Coverage Ltd. This web site provided and maintained by Atlantis Virtual World Ltd. A variety of other companies are involved in the supply of services, many through an international service company set up by New Atlantis to allow the coordination of quality services world wide. 

General notice: The club and providers of the information are not financial advisors, the information we provide is equivalent to that you might reasonably expect to find in a quality magazine. It is, as far as we can, well researched, facts checked, and independent, unless clearly shown as a club service. The application of this knowledge is down to you and you must decide what is relevant to you in your own circumstances and if you do not have the ability to decide for yourself  you should seek whatever legal or financial advice that you feel is appropriate. Our crystal balls are well polished, but the future even for us can be less than accurately viewed, and therefore you should consider any projection or view that we may present in relation to the future as a mixture of foresight based on information and probability, personal views with a bit of guesswork thrown in, in exactly the same way as any other person or organizations forecasts are. We will of course try to update our information and views as developments occur, or governments or others change the rules of the game. We can make mistakes, or have written something that makes perfect sense to us, but may be unclear for others, if you feel we have then you should let us know, we also like to be told what a good job we are doing.

Copyright: the information on this web site is our copyright, but you may print out copies to give to others or use yourself. You cannot sell it or include it in other works or web sites without our permission.  You can link to any of our pages from within your own web site without asking us, providing that you do not do this in such a way that makes it look as if you are connected or recommended by us. You may also offer downloadable copies of our free publications to be downloaded from your web site, but we would prefer it to be  downloaded via a link to our site so that the latest copy is always available, if you don't know how to do this please ask.

Problems: To report any problems on this website, or if emails go unanswered, please see the contacts page.