Property Snakes and Ladders; 2009

GracieP

Starting now.:D

PasturesNew

ad44downey wrote: »

Good news. It's good to get a balanced picture and see greedy muppets lose money rather than make mistakes and still make money in a rising market.

Been quite a bit of that on homes under the hammer in recent months... quite a few disappointed people trying to smile in the last 2 minutes.

PasturesNew

"It's the peak of the market and tonight's developers are on the crest of a wave"

"Bank of mum and dad - your mum sold her home and gave you all the money"

January 2008
Leatherhead
Natasha Burke, lives at home with her mum Debbie. Aged 21 already made £100k developing the family house.

Natasha jacked in her job as an EA to develop full-time

Uninspiring bungalow with 200' garden.

10 week deadline.

Bought for £330k. "Mum and I sold the family home last year and moved ourselves into rented last year ..."

Mum: "I like to be behind her in whatever she wants to do"
Beeny: "Are you involved?"
Mum: "No, Natasha has the sole responsibility"
Natasha: "I've been watching you on the telly since I was 14 and decided that's what I wanted to do"

GracieP

Oh God! What a silly mum.:eek:

PasturesNew

Figures
Bought: £330k
Budget: £82k
Wants: £475k

Beeny says that's high. Natasha says "I have quite a lot of experience being an EA"

Beeny suggested £430-440k as an end price.

PasturesNew

Currently: 2 beds, 1 recep, 1 bath, 1 kitchen, 1 conservatory

Extend entire back of house to create a large kitchen/breakfast and lounge. Cut bathroom in half to create an en-suite. This will create a seriously under-sized bedroom. It will be more of a study than a 3rd bedroom.

Beeny said take it out further and gave yourself another 3-4' you could call it a 3rd double. Beeny recommended a further 5' out and move things around differently.

Natasha says she'd have to wait 7 weeks minimum for the planning though, so won't.

Beeny thinks hse's in a hurry to succeed and not thinking it rhough.

PasturesNew

Battersea

39(?) year old Rick Dickinson - mum/dad bankrolling his first development.
They have no knowledge of the area.
4-bed mid terraced house (about 100 years old/red brick/bay front)

Rick wants a luxury family home, but Battersea is packed with those so competition is stiff.

He is putting in 50%, his parents are putting in 50%
Bought in Dec 2007, peak of market
Bought: £690k
Budget: £87k
Want: £950k

Mother thinks £875k is realistic.

Just £50k for entire refurbishment. Have to meet payments on the £500k mortgage to fund it. The £50k includes three mortgage repayments.

Beeny says all she is seeing is utter confusion and if she were mum/dad she'd be very worried.

PasturesNew

My parents would have been loathe to lend me £5 when I was 21 ... family home ... out of the question!

PasturesNew

Is this Battersea? Is this Rick's house?
http://www.houseprices.co.uk/e.php?f=pd&q=103+marney+road&n=100

On the telly they use vernacular names for areas yet addresses use a different name, so I never know.

PasturesNew

Early 2008, lending is tightening, but not in the bank of mum and dad.

Back to Rick's gaff:

Mortgage: £550k
They seem unsure how much it'll be worth and what's in the budget.

Plans change daily "we all keep changing our minds".

Beeny says: Major layout problems, they are only planning on creating a study on the 2nd floor at the moment it seems. "totally underestimated what they've to do to resell it"
Beeny: would start right from scratch. In that area it would need (to compete);
1] Extend kitchen to the side, open plan kitchen/diner
2] 1st floor bathroom (middle room is best spot)
3] 3rd/4th bedroom upstairs and extend into the roof to make a superb master

This would need an increase in the budget. Rick et al say they'll take that on board, get in more quotes etc.

"Who is project managing this" "on a day to day basis Ricky, but we'll be heavily involved in this"

Rick wasn't sure who was in control of the budget. Dad was clear it is the parents keeping a close eye.