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can I start a career of property development without a job?
will a bank lend me 100% mortgage if I dont have a job or any means of income, but the property I want to purchase has great potential?
Public Comments
- Well there are two ways of looking at it you can build a house without a dime but you need a job or steady income. A business on the other hand is a little different because it is a investment and the bank wants you to have to invest into your own prodject even if you have a good business plan. When I started I had to have 20% of the total loan amount the bank was loaning me but, I didn't need a job so. I hope this helps you with your plans.
- Assuming there was a 100% loan available for purchasing undeveloped land, that is a big assumption, and a constuction loans that required no money down or land to secure the loan. It takes a while to get property developed. Usually construction loans don't require payment until construction is complete. You probably won't instantly sell or rent your property at that point, it may take a while. If you have no income or other source of money how will you pay your bill? If you were a bank would you lend me money if I had no way to pay it back.
- Banks are not a charity so they would need some form of collateral that would be equal or greater than the amount you need. So in reality no the bank would not lend you the money.
- No is the short answer, absolutely not. Assuming you are in the UK (or any country with slightly sane lending practices even, surely, American) you don't have any chance of getting a bank to give you 100% mortgage without prooving that you can pay it back. How will you meet the repayments? How will you pay for the work to be done, and the materials? What happens if you can't sell quickly after you've done the work? What happens if the housing market (as many expect) dips? I don't even think there is an easy work around for this. Perhaps, if you have equity in your own house you could remortgage and use this a deposit / guarantee for the new purchase? Even still - its a massive massive gamble for you, and still a significant gamble for a lender.
