Are the eternal optimists on here still feeling optimistic?

leveller2911

HAMISH_MCTAVISH wrote: »

In theory, where used to genuinely create infrastructure for large developments, not much.

But it has acted as a significant disincentive for small and self builders, as it can add fees running often into tens of thousands of pounds that are entirely disproportionate to the project.

Generally speaking Section 106 on self builds are only put on the planning permission whereby the proposed dwelling is outside the local plan or in a location where planning permission would not normally be granted.

I don't really have any issues with S106's. Take for instance a small developement of bungalows down the road from me. The developer purchased the site for £375k, build cost of the 4 properties was around £600k and he sold them all for a total of £1.5million and good luck to him. The S106 cost him something in the region of £16k which would go towards the local play area,village hall etc.

Even on a single self build the costs would be no more than around £4k , you can spend more than that on just fitting insulation in the house.

I think they are a great idea as long as the money raised is ringfenced and spent in the local areas but I'm not sure it is.

CLAPTON

leveller2911 wrote: »

Generally speaking Section 106 on self builds are only put on the planning permission whereby the proposed dwelling is outside the local plan or in a location where planning permission would not normally be granted.

I don't really have any issues with S106's. Take for instance a small developement of bungalows down the road from me. The developer purchased the site for £375k, build cost of the 4 properties was around £600k and he sold them all for a total of £1.5million and good luck to him. The S106 cost him something in the region of £16k which would go towards the local play area,village hall etc.

Even on a single self build the costs would be no more than around £4k , you can spend more than that on just fitting insulation in the house.

I think they are a great idea as long as the money raised is ringfenced and spent in the local areas but I'm not sure it is.

so a profit of 500k on an investment of 1 million

I just can't understand why there are 100,000s of people wanting to make those profits for a routine job like building a few bungalows

Thrugelmir

CLAPTON wrote: »

so a profit of 500k on an investment of 1 million

I just can't understand why there are 100,000s of people wanting to make those profits for a routine job like building a few bungalows

The figures probably don't take account of borrowing costs. Nor central the overheads of running the business nor marketing and selling the properties. Companies don't make the profits people they think they do. As take far to a simplistic view.

leveller2911

CLAPTON wrote: »

so a profit of 500k on an investment of 1 million

I just can't understand why there are 100,000s of people wanting to make those profits for a routine job like building a few bungalows

Access to


Funding..........Simple

BTW As I said Section 106 costs are nothing like Hamish has discribed. To the average small scale developer its small beer.

They have far more to say about the costs of getting rid of rubbish than Section 106's.....

CLAPTON

leveller2911 wrote: »

Access to


Funding..........Simple

BTW As I said Section 106 costs are nothing like Hamish has discribed. To the average small scale developer its small beer.

They have far more to say about the costs of getting rid of rubbish than Section 106's.....

absolute rubbish

there would be thousand and thousands of takers if one could invest 1 million and get back 1.5 m in under a year

not many small businessmen make those sort of guaranteed profits

do small developments have to meet 'affordable' housing quotas

Crashy_Time

Joeskeppi wrote: »

Whatever happens I imagine the "eternal optimists" will do what they did last time and find a way of making the best of the situation, while the doomorons will do what they did last time and sit with their thumbs up their bum complaining that it isn't fair.

Just keep loading up on BTL and mortgages JoeDebty, nothing can go wrong....can it?

padington

Crashy_Time wrote: »

Just keep loading up on BTL and mortgages JoeDebty, nothing can go wrong....can it?

It can't really personally if you know what your doing, usually they've wrapped all their risk into a company, which means they can protect their personal wealth from a bust.

System

Crashy_Time wrote: »

Just keep loading up on BTL and mortgages JoeDebty, nothing can go wrong....can it?

Probably not so wrong that I find myself living sad and alone in an HMO in Scotland.

Crashy_Time

Joeskeppi wrote: »

Probably not so wrong that I find myself living sad and alone in an HMO in Scotland.

It`s so easy to get someone to bite on here.

Crashy_Time

padington wrote: »

It can't really personally if you know what your doing, usually they've wrapped all their risk into a company, which means they can protect their personal wealth from a bust.

Most people doing BTL don`t have much personal wealth, they thought BTL was the way towards that, but they were wrong.