First time renovating, advice wanted.

mstopham

mlz1413 wrote: »

mstopham if you have £100k budget is this for everything? because you have not listed fees anywhere. Do you have seperate money for solicitors, do you know if the auction charges buyers any fees?

As you have £10-15k left over for electrics, heating, furniture, kitchen, bathroom and windows I think you are leaving yourself very short, if you then have to take out £X for fees I think things will be very tight.

I did up a really run down terrace, 3 beds, which needed everything, roof, plastering, floorboards, skirtings, doors, wiring and central heating before windows, kitchen, bathroom furniture and decoration and I spent £25k on major works plus 2 years hard labour and my wages most months.

I'm not saying don't do it, just be very careful to only bid upto a realistic price for you, lump sums are hard to come by when you are paying all the bills.

I haven't included the fees in this and I don't know about the auction fees, the website doesn't have that info and they have told me the catalogue will be available next week.
I will be using our family solicitor and his fees usually come out to a bit under £1000 for a property purchase (My dad has done several with him and I have done 1 purchase and sale with him in the past).

We do have the option of buying and carrying the work out later as a last resort but this would impact on our monthly cashflow.

The plan is to rent out my OH house and move in somewhere else. This is basically my dad purchasing an investment and he has set a return of a bit under 7%. He has £100K in the bank. So if we bought but didn't move in this would cost us the money we would of been getting from the rent and then 2 lots of bills (C/Tax, standing charges for Gas/Electric/Water)

So the £10/15K would hopefully be enough to get the property to a state to live in (I am proposing decorating 1 of the 4 bedrooms initally and 1 of the 2 reception rooms). After then we will have the cashflow and time to do the rest of the property.

The 2 major issues for me is the structure of the house and the state of the electrics. If they are both sound I would be looking to go to near the £100k mark. (Similar properties in the area are for sale between £140K - £165K)

gallygirl

Good luck mstopham - the house I wanted has been sold to a cash buyer
- thank goodness

mstopham

Well on viewing the house I am going to be leaving it alone, there is lots of interest (there were about 8 - 10 other people viewing when I was there and I know they have quite a few sessions booked in) but I suspect the price will be a fair bit above £75K and the place needs pretty much gutting inside and starting again.

I would guess at a ballpark figure of £40-50K to get it nicely renovated and a purchase price of £100k would still make it a good deal just out of my league.

As a result of this experience I have moved my ambition down a bit! Got my eye on a place with a guide of £65k I have looked through the window and this looks OK inside but reading the notes it has a smallish kitchen and downstairs bathroom.
Would be looking at moving the bathroom upstairs and extending the kitchen.
So a new bathroom and kitchen, other than that it looks like a lick of paint and new doors and flooring will perhaps be all that is needed.
Square meterage is about 80-85 I think Got to approx 77 with room sizes but then landing and stairs.

Now I need to think of a budget to do the painting/flooring!