How to tell or find out whether a house is a good investment property

mr_fishbulb

clutton wrote: »

""You sell and pay off your 90 debt. You have 15 profit, which is a 50% return on your actual investment! In just one year! ""

this argument is how the "INside Track School of Property Invesment works!"

by the time you have factored in buying costs/selling costs (estimated at £10k)repairs, maintainance, insurance costs, voids, advertising, court costs, agency costs, mortgage interest payments, gas certificate, EPC, electrical periodic inspection, office costs, phone, travel, etc etc etc and then paid Capital Gains Tax on the capital gain at 20% - you wont have made much profit........

But everyone who has watched the property development programs knows:

Profit = Valuation by an EA walking around the house - Cost to Develop - Original Purchase price.

Where have all these extra costs come from all of a sudden?

getmore4less

Gross rental yield >10% is a starting point.

This way you have a fall back as a BTL if the development project fails to make money

SouthCoast

Location, location, location.

MWild_2

thanks for all the responses

i think the main thing is, weve moved into this house and are doing things to it to make it nicer for us to live in, but we dont want to do too much because where making her cousin money by doing it.

so weve been saying to ourselves we should buy it then do the things we want to do it, we love the house its great, but i cant see us living in it in 5 years time.

i thought if we bought it did the things we wanted to make it nice for us so it would be a "home" then we could sell it and wed make any profit and move to a new place.

i begrudge spending money to make the landlord money or the fact that i spend the money for nothing, its not getting me anything infact im losing cos i still pay rent and an paying to do it up.

weve painted the rooms and recoved the walls and are repairing small damages etc, and we want to replace the horrible black carpets and know someone who will do it for £50 for us
so in total when weve done the minor changes to make it better for us, we will of spent maybe £150-£200. but then theres the intermediate changes which will cost alot more maybe £1k and i dont wnat to do those intermediate or major changes for someone else.

thanks for your advice