Buy, renovate, sell...?

GreatBigBookcase

something corporate - yup, cash. And an unnatural enthusiasm for tile shopping. I can do the painting myself, and I've become pretty nifty with a jigsaw so can lay wood flooring myself, but realise that wouldn't knock much at all off the costs. But, there's no shame in giving someone else a job.

Alex, thanks the world is very much my lobster, I agree! (I guess the 'This time next year Rodney...' line isn't quite so fitting here, unfortunately.) I like your reply best. Yes, you're still telling me not to do it, but you just kind of deflated my bubble a little bit rather than burst it completely. Having done it in the past, is there any way you'd do it now in the current climate? (I think I already know the answer to that...) I've been considering the female sparky route, I reckon you're right about demand from female clients. I could start the training pretty easily at night school (C&G level 2&3) but then what? I wonder how easy it would be to get the work/experience needed to become fully qualified... Still researching that one.

motherofstudents, thank you, yes, the first purchase would be more or less the same whether buying for myself to live in or to sell on as I like the idea of having it renovated to be exactly how I want it anyway...so, yes, why not try??

Appreciating the comments everyone. Even if I don't like what you're saying

somethingcorporate

Well re-flooring and a lick of paint is certainly something you can contribute.

Do look in to other things like tiling, anything you can spend a day yourself doing rather than a professional at £200 a day is all money on your profit margin.

heman2012

A friend bought a completely run down property 5 months ago for cash for 70k.Needed a new roof, windows, damp proofing, kitchen etc. Cost 30k to do up.

Thats 100k outlay including a builder to do all the work. It sold for £145k after one week on the market.

There is still money to be made, but depends how cheap you initially get a property.

yoyoegg

I'm currently pregnant

I know Sarah Beeny can run a property renovation while preggers/nursing, but she's a super-woman!

vegasbaby100

Speak to a good merchant locally for a source of materials. Also look for a builder to sub contract in.

I still see a lot of small developers who are NOT builders running sites and making money 2 of which now employ 9 tradesman between them and have become ltd companies.

It is not easy but it can be done.

All i would say is remember that the house is not for you to live in the people who we see striggle are people who cant separate the business from the personal

If when you are ready and want any information regarding pricing of materials I will hapily give you information on merchant costings to help you get the best terms. (as long as it is not my company )

Good luck

GreatBigBookcase

somethingcorporate, I have a folder of possible short courses I can take once I'm back in the UK and tiling's on the list

heman, thanks for the encouragement there. Yep, buying price is key. I have enough to live on for a while so I can take my time finding the right property.

vegasbaby, thank you too for the encouragement and sharing good news stories Advice noted re remembering it's a business and not my home! And thanks so much for your offer of help in the future. Really generous of you.

yoyo that woman seems to be constantly pregnant! I'll not be by the time I start, so maybe I only need to be half a superwoman...?

lessonlearned

Ray - don't be disheartened by some of the negative replies.

I disagree entirely with the 10 years too late.

If you have to rely on a rising market to ensure that you make a profit from developing then you are not really a very good developer.

Crossing your fingers whilst relying on a rising market to ensure your profit is not much of a business plan.

A developer who is worth their salt should still be able to turn a decent profit in a depressed market. In fact if you source the right properties it can even be easier - less competition. The fair-weather developers will have fallen by the wayside.

In a depressed market you should be able to source your property at a competitive price, and also be able to find good trades people who will charge you fair and realistic rates.

In a rising market it can be far more difficult because you will face competition in buying the property thus pushing up the price, plus are more likely to have to pay higher rates to the trades.

Ray - just remember you make your profit at the buying stage. Buying at the right price is key. Then keep a tight rein of your budget, don't let your costs run away with you. The fact that you have some capital and are not having to raise a mortgage will definitely work in your favour. You can source a good deal and then swoop.

Of course the lower end of the market will be more difficult than the top end. Profit margins will be smaller, hence the need to really keep a tight hold of the purse strings. However, that's where most developers start. They don't cut their teeth on the multi-million projects but start small and work their way up.

Good luck.

GreatBigBookcase

lessonlearned, thanks for your post. Some good points and excellent advice which I'll definitely take on board.

Mike3

Firstly, Im not an expert in flipping properties nor is it my business to do so. I work full time. What I will say is 4 years ago I have 40k, bought a property, painted, new carpets and plaster (none of which I did myself) and sold it, for a profit. I didnt set out to make money I just didnt like my neighbours. Next year I did the same but sold up to go travelling. Made a profit (this time I added a new bathroom too). Year after, guess what, bought a house and someone knocked on and asked me to buy it taking theres in part ex. Well my fixed rate was ending and I wouldnt of been able to afford the mortgage so I sold it (downsizing at a profit). Later that year (last year) I sold the part ex because apart from the noisy neighbours, noisy school and horrendous leaves from huge school trees, I moved in with my partner (now no longer a home owner) and guess what . . . .yes I made a profit. Im not setting out to buy and sell for profit but my only advice is buy in the right area, and I dont mean the most expensive. Avoid flats, and ex local authority. Get the right trades to do the work and said *lick of paint* and then IMO most importantly choose the right estate agent to sell the house. Anyone can give away a house.
Hope my advice helps, one more point though. Buy a house you would be happy to live in if it all went wrong

GLA Mike

GreatBigBookcase

Mike, thanks for your reply. I hope some of your good fortune rubs off on me!

Will take all your good advice on board. And yes, the plan has always been to buy something I'd be happy living in if it doesn't work out as planned so I don't feel like there's any risk involved. But anyway, it will work out. I can feel it in my bones.