Starting A Business Advice :o

[5lab]

So... 30k on a 150k property... where does the other 120k come from?
At the normal 3X your annual income that means you have to earn 40k p.a. to qualify for a loan

NOT if you have a buy to let mortgauge - you can get a mortgauge taht will specifically take into account the rental income of a property as a regular income. the rate is a bit higher than normal (around 8%, rather than around 6), but it can be done. the other 120k comes from the rental income over the next 25 years, which pays off the mortgauge and gives you a bit of income too. kapish?

[TiG]

NOT if you have a buy to let mortgauge - you can get a mortgauge taht will specifically take into account the rental income of a property as a regular income. the rate is a bit higher than normal (around 8%, rather than around 6), but it can be done. the other 120k comes from the rental income over the next 25 years, which pays off the mortgauge and gives you a bit of income too. kapish?

5lab? I put those figures in and it comes out at ... £755.37 at 5.75%

You have to pay tax on the rental income too i'm sure. Its not guarenteed money.

As for JCB's age, agreed 18 means nothing, its maturity that is important.

TiG

[5lab]

tig. i simply used the website linked -
https://hsss.hsbc.co.uk/bankinguk/mo...tgageindex.jsp

Mortgage Loan
The monthly mortgage repayment for a HomeStart Mortgage loan of £120000 over 25 years on a Variable rate 5.75% (APR 5.9%) would be:

£575.53

re: tax - granted, only the first £5k is tax-free, so you wont earn as much. but you still earn quite a lot, and its a good way of supplimenting your income

[TiG]

5lab,

You fell into the trap of cheap first 3 years!...

Month 1 to 36
Normal £755.37
Homestart £575.53

Month 37 to 300
Normal £755.37,
HomeStart £802.49

If you could get £120K mortgage for 575 a month everyone would be buying houses.. The homestart mortgage actually works out at £775 a month over the course of the term.

TiG

[5lab]

ahh i hadnt realised that homestart was cheaper for the first few months.. makes a lotta sense that


still, at £755, you could still make nearly £250/month if your renting @ £1000/month.. take tax away and you're probably raking in next to nothing.. but as the rent increases (£50ish per year would be about right, based on whats happening down here) by the end of 20 years you'd be making over a grand a month over the mortgauge!

[Rave]

Buy-to-let clearly can be very profitable otherwise people wouldn't do it. Right now though it's a VERY risky investment indeed because there's a bit of a glut of rental properties and house prices are teetering on the edge of a fall.....possibly because a lot of buy-to-letters are nervously trying to get out while the going is good.

On a personal level I wish people wouldn't buy-to-let because a lot of the massive house price rise of recent years was fuelled by people looking to make money- so I won't feel too sorry for them if they get hammered by a drop in house prices. At the cost of more potential hassle, buying a house suitable for renting to students is probably a safer long term bet because students will always need somewhere to live- and in my opinion it's less morally dubious because you're not making so much of a contribution to first time buyers and low income families being priced out of the market.

[turbo]

for the love of god do not enter in the pc componants market! at the time when computers initially really took off i would have said yer probebly a viable opportunity tbh but now it would be madness to enter in the market without some serious financhial backing....

What you could do is talk to an investment banker and see if they can invest your money into some share options. 30k could easily get you a large number of shares in a small company with a big future....you just need to talk to someone that knows the marketplace, hence a proffessional.

I set up my own business repairing damaged repairable cars and now have a small bodyshop, however it has been alot of work and blood shed, after about a year and half were starting to turn over a regular profit, before then it was money out of my own pocket if the business didnt make enough. As you can appreciate not an ideal situation and i started with a £50 car, which sold for £300 then a £300 car which sold for £1200, etc so using your money correctly should give you a better chance!

Goodluck!

[Jcb33]

Ok having taken your advice and having a long think i have come up with a couple of "Posibilities" which i would like some feedback on please

Website Hosting
Game Server Hosting
Building Custom PCs... (Only ordering parts as people want them built)
Selling Pre Built And Barebones PCs On Ebay

[DaBeeeenster]

Ok having taken your advice and having a long think i have come up with a couple of "Posibilities" which i would like some feedback on please

Website Hosting
Game Server Hosting
Building Custom PCs... (Only ordering parts as people want them built)
Selling Pre Built And Barebones PCs On Ebay

Again, all of these markets are extremely competitive. You need to sell into a new, growing market.

[poolking]

The only way you could compete in an over saturated market is not trying to compete on price, pride yourself on customer service, people won't mind paying a little extra for something as long as they are treated like kings and queens, they'll always come back for more if they're treated right, along with their friends.

[Nick F]

You need much more thn 25k to setup a website hosting company, same applies to the game server hosting.

Loads of people sell bre built machines on ebay, what would make yours different?

All the online outputs already do custom built machines.

[poolking]

You need much more thn 25k to setup a website hosting company, same applies to the game server hosting.

Loads of people sell bre built machines on ebay, what would make yours different?

All the online outputs already do custom built machines.

It wouldn't cost you that much to set up a web hosting company initially you could always start off reselling.

[Russ]

ok on a serious note, dont bother at all mate.

think about 3 things What Why Who

What you want to sell?
Why you will be able to sell it, is there a gap in market etc?
Who are you aiming your product at ?

then give me some money for helping you

[poolking]

I'd really go with the other suggestions and invest the money wisely, in stocks or a high interest account.

[DaBeeeenster]

You need much more thn 25k to setup a website hosting company, same applies to the game server hosting.

Although I would strong recommend against setting up a hosting company, you dont need anywhere near 25k to start one. Buying a quarter of a rack and filling it with 1U machines will cost < 10 grand per year and would probably be more power than a lot of small hosting companies have. You can buy 1 machine for 1500 per annum and rent space on that if you like.

You wont make any money, but you can do it.

[Jcb33]

I'd really go with the other suggestions and invest the money wisely, in stocks or a high interest account.

Well how high an interst rate can you get? Per month intertest rates if.... ?