Help needed from a first time property developer!

minibbb

Im just in the process of buying a one bedroom flat to renovate and hopefully sell at a profit.

Its a basic one bed flat which is very dated but ultimately clean. It needs a new bathroom, kitchen, carpet, doors, decorating, two double glazed windows and new circuit board/sockets/light switches and three storage heaters.

A local company has quoted £16000 to do all of the above and on word of mouth are supposed to be excellent. When I bought my own flat I used different tradesmen to do each job, unfortunately coming across some hopeless plumbers/carpenters along the way though!

Should I be looking at a company that can do the whole renovation or is it better to use different tradesmen to keep the cost down? I was hoping to do the lot for about £10000 ideally.

Lastly, how good should I make the flat? Does it make a huge difference to overall value whether I spend the extra money for example on a Magnet kitchen or save the cash and go for Howdens?

Sorry for the rambling post, any help much appreciated!

PasturesNew

The profit margin tends to be from the sweat of your own labour ... of which you are providing none. It is quite likely that your "profit" (if it would ever exist) would go into the pocket of the bloke doing the work.

Have you done your sums correctly?

How well you do the flat depends on who it will be marketed to once finished - only a local estate agent could tell you what's best to do with it because they know who is buying what, for how much, where ... and if it needs a high spec or something basic.

minibbb

Thanks for the quick reply. I was planning on doing the decorating myself (as I did with my own flat), which is £2800 of the quote. Was also planning on dismantling the old kitchen/bathroom to save some money.

I know what the flat will be worth and there is definately a healthy profit in it, havent been watching property ladder for nothing

I should imagine its going to be ideal for either a first time buyer or retired couple, therefore im guessing maybe I should aim for a middle of the road spec?

Doozergirl

I'm surprised you'd be selling to a FTB or a retired couple, you don't usually find the two together. Who already lives in the block?

What is the area like? If it is true FTB territory, not affluent FTB territory then you'd go quite basic, not middle of the road. Choose off the shelve bathroom suite and kitchen.

£16000 is an awful lot to spend on a one bed flat with relatively little work required. Profit is about keeping costs down. You must employ the right people for each job. What you describe shouldn't cost anymore than about £8000 really. But if you are employing one person to organise it all and essentially project manage for you, then £16000 isn't a surprise.

I presume the lease is all legit and the management in order?