First time developer - what's your best bit of advice ?

mikeyw

Hi,

I've recently won at auction a town centre commercial unit that i plan to convert into 2 flats to let out.

As this is my 1st renovation / conversion what one piece of advice would you give me to avoid the usual pitfals when starting out ?

To make life easier my father is an Architect and my Father in Law a Joiner / builder so i have good people helping me.

The work is mainly cosmetic although the basement flat is likely to need tanking (i've made allowance for this in my budget)

The total cost is going to be in the region of £120K with combined rents of around £1150 pcm so the numbers look reasonable assuming we get through planning ok.

Ideally i'd like to try another later this year so this will serve as an apprenticeship to see if i can make this work as a longer term venture.

Any pearls of wisdom from those who've been through this process would be very much appreciated

mikeyw

I should add i'll be Project Managing it myself and bringing in trades as and when required. From completion to finishing the 1st flat i'm aiming for 2months and 3months (subject to planning) for both completing - i'm stilll employed atm.

wymondham

Hi Mikeyw

If you've already got the property then you must have a pretty good idea already what to do/not do etc...?

I'd say stick to a budget, but I've never done this so it's guessing!

Good luck!

vegasbaby100

Firstly congratulations.

Remember that it is not a home fo you and that it is a business venture.

What i would say is make sure that you double check and then triple check the Accoustics the amount of floors I have seen ripped up is beyond count. (as its flats)

socrates

mikeyw wrote: »

Hi,

I've recently won at auction a town centre commercial unit that i plan to convert into 2 flats to let out.

As this is my 1st renovation / conversion what one piece of advice would you give me to avoid the usual pitfals when starting out ?

To make life easier my father is an Architect and my Father in Law a Joiner / builder so i have good people helping me.

The work is mainly cosmetic although the basement flat is likely to need tanking (i've made allowance for this in my budget)

The total cost is going to be in the region of £120K with combined rents of around £1150 pcm so the numbers look reasonable assuming we get through planning ok.

Ideally i'd like to try another later this year so this will serve as an apprenticeship to see if i can make this work as a longer term venture.

Any pearls of wisdom from those who've been through this process would be very much appreciated

Do you have permission for change of use?

Do you know how long that can take ?

For my first project I would not have bought a property that may or may not get permission for change of use

What does your father say on the matter - I am assuming he has had a chat with the Planners and got some idea of their opinion on the proposed project?

Also look at a website called:

LandlordZone.com

Plenty of developers over there

Thrugelmir

mikeyw wrote: »

Any pearls of wisdom from those who've been through this process would be very much appreciated

Rather late to be asking the question now having bought the property at auction.......

assuming we get through planning ok

My question would be. What's the alternative plan?

phill99

Whatever time frame you have, double it and whatever conversion budget you have add 50%. You won't be far off then.

Don't buy anything through retail outlets. Set up trade accounts at Howdens, Screwfix etc. They will give you much better rates.

Don't chase around seeing if you can save pennies on something. Your time is far more valuable.

Manage the detail.

Don't get caught up in emotion. Be functional about purchases. A £50 tap does the same job as a £200 one and doesn't add 4 times the value to the project.

Invest in stuff that will save you money in the future such as Upvc facsias etc.

Keep finishes simple. Magnolia through-out.

david29dpo

What are you going to do if permission is refused?

mikeyw

vegasbaby100 wrote: »

Firstly congratulations.

Remember that it is not a home fo you and that it is a business venture.

What i would say is make sure that you double check and then triple check the Accoustics the amount of floors I have seen ripped up is beyond count. (as its flats)

Thanks - that's an excellent point that could easily be overlooked. Is there a simple way to test the acoustic properties of the floors to ensure they are sufficient

mikeyw

socrates wrote: »

Do you have permission for change of use?

Do you know how long that can take ?

For my first project I would not have bought a property that may or may not get permission for change of use

What does your father say on the matter - I am assuming he has had a chat with the Planners and got some idea of their opinion on the proposed project?

Also look at a website called:

LandlordZone.com

Plenty of developers over there

I spoke to the local planning authority and they told me they'd had several enquiries about this property and would be looking favourably on a return to residential

My father is going to have a meeting with them this week to see what we can plan to give it the best chance of getting approved

mikeyw

Thrugelmir wrote: »

Rather late to be asking the question now having bought the property at auction.......

Nah - if i'd asked before people would have talked me out of it and i'd have not done something i wanted to for years...not expecting it to be easy but i've got a chance of making work. My money is just losing value sat in the bank

Plan B is keep it as a commercial unit - The Estate agent told me it was letting at £10K p/a in its current scruffy condition