Buying a property to renovate and sell

kingstreet

I didn't mention "remortgage own property" because I wasn't sure if;-

- the loan to value might be a problem
- the purpose of the loan would be acceptable.

I can see a good few lenders shying away from "development finance" or limiting the LTV to as low as 60%. Although "purchase of second property" does cover a multitude of sins, now I come to think about it.

sinbad182

tim123456789 wrote: »

Because it's only 10Ks work if you do it yourself and most FTBs are too lazy.

Get a man in and it's 25K to do up

tim

Probably more likely most FTBs dont have 10k burning a hole in their pockets to renovate their first house straight after buying it. Or they dont have the skills to do it.

manyspots

lessonlearned wrote: »

You only become an expert by doing. No-one is born an expert.:D

Manyspots - I recommend you invest in some good "how to" books. Get learning.

I suggest our dear friends, Sarah Beeny, and Gary McCausland. Readable and easy to understand - and - they both know their stuff.
You can pick them up from Amazon.

Re Tax - There are a series of Tax Guides, specifically written for property business, published by the Tax Cafe. They cost around £25. Needless to say you will soon recoup your money on your investment. They are quite accessible for the layperson - well as far as anything to do with tax can be:rotfl:.

Read and learn.

Yes by all means come on here and ask the odd question but with all due to respect to the posters who are kind enough to give advice you really do need to put some effort into this and do your own homework.

If you are really serious about this get learning.

Oh and good luck.If you know what you are doing then yes there is money to be made. Get it wrong and you could lose a lot of money.

Thankyou for this post. We are reading up a lot which is why I came on her to clarify some questions we had from reading various things. We want to make sure that we are armed with all knowledge before we begin and are determined to ensure that we follow all the correct procedures regarding tex etc.

manyspots

sinbad182 wrote: »

Probably more likely most FTBs dont have 10k burning a hole in their pockets to renovate their first house straight after buying it. Or they dont have the skills to do it.

This is exactly the feedback we are getting from estate agents. I am making a point of asking what buyers are looking for and what is turning them off a property Whilst some may be able to scrape the money for a deposit they do not have the extra cash to make changes. Some are happy to live with houses as they are until they save enough to do work, but many want somewhere ready to move in to.

manyspots

GDB2222 wrote: »

"One estate agent speculated a much higher sale price which we believed to be inflated so the selling price we have built in to the equation is easily in line with what others are selling for in the area, in fact it is slightly lower."

You are definitely looking at what places have actually sold for, rather than the asking prices?

Yes I am doing my best to ensure that prices are actual sold prices by doing as much digging as I can. We are projecting a sale price £25,000 less than what the estate agent said for three reasons: a) we think they inflated the sale price to make the property sound more appealing, b) judging by the sold prices of similar properties in the close vicinity, c) we would put it on the market at the lower end of the achievable amount because we would not want it sitting around for ages waiting for a sale.

newsgroup_monkey

googler wrote: »

Next time you watch one, look at the copyright date on the end credits. I'd be very surprised if you find any made in the last few years.

Wonder why that might be ... ?

ISTR someone the other day said they knew of a house that appeared on one of those DIY SOS type programs. Apparently whilst they did do it in 48 hours, they had 60 odd people working 16 hour days!

birdie87

manyspots wrote: »

Thankyou for your reply. Might you be able to suggest ways in which we could finance a refurb and sell property. Unfortunately we cannot afford to buy outright.

Any update on this? How did it all work out in the end?

Search on google for a broker that specialists in buy to sell mortgages and understands the property development market better than most. They'd usually have a good idea of all the different types of finance available to you besides just standard mortgages and will find the finance that can be best tailored to your needs. A good broker will usually go a few steps further further as well. Mine negotiated my house price down for me by 6k!