Buying a home at the beginning of the house price boom in the late 90’s was always going to be a good idea. No prizes for that. However what I decided to buy, in my late twenties was barely a home, needing as it did so much renovation that friends thought it should have been condemned. I knew however it had great potential if I could just bring it back to it’s former glory.
The trouble I had though was what most young people suffer from - lack of money. I needed a way round that and equity release was the solution for me although in reversal of the usual method of equity release.
At first I financed the intial works of new roof, windows and doors, central heating, plastering and kitchen with loans, credit cards and HP payments. Getting myself deeper into debt was slightly troubling however I was sure it would eventually be a success due to the rising market increasing the value of the property naturally and the bank’s willingness to release the equity I was creating. Equity release was always going to be my safety net, my soft landing.
The money I was ploughing into the property was returning at a much higher rate in terms of value and after a year, and with my 0% credit deals coming close to their offer end date, I was able to release enough equity now in th home to pay off the debts accrued during the renovation stage. In addition the house was now worth so much more due to the rising market increasing my personal equity.
The next step was to pick the right time to sell and after living in the home for 7 years of living there I sold up and moved into rental accomodation hoping that, in line with what should happen, the bubble would eventually burst.
As I was still working my rent was covered and my savings were secure and when the market did eventually collapse I was able to pick up a place for cash and be finally, in my mid thirties, mortgage free. Yes it needs work but I am pretty sure it will be worth it although this time I won’t need to release any equity to pay for it.
