First Time Buyer and funds to renovate

andypa1

this thread is really helpful for me as i'm in a similar quandry.
I'm looking at a property that is currently £125,000 but it has been up since July 2015, with the price dropped twice since.

It is a reposession and in need of some work, most is just replacing carpets and decorating but a missing roof tile has led to lots of damp on one wall in an upstairs bedroom. I estimate I can do the whole house cheaply for £5k and will cost at the very most £10k.

I'll be buying a property to live in for about a year and a half before getting hitched to my girlfriend (she already has a place) so this will be an investment for us, hopefully to rent out for a few years and then sell for a profit.

Now my concern is that the helpful stats on zoopla say that this area has an average selling price for this kind of property of £125,000 so would that be considered the ceiling? If it is then paying £125,000 plus up to £10k for work would be bad business?

would appreciate thoughts on how accurate the zoopla stats are and general thoughts on my plan.

Cheers all!
Andy

Doozergirl

andypa1 wrote: »

this thread is really helpful for me as i'm in a similar quandry.
I'm looking at a property that is currently £125,000 but it has been up since July 2015, with the price dropped twice since.

It is a reposession and in need of some work, most is just replacing carpets and decorating but a missing roof tile has led to lots of damp on one wall in an upstairs bedroom. I estimate I can do the whole house cheaply for £5k and will cost at the very most £10k.

I'll be buying a property to live in for about a year and a half before getting hitched to my girlfriend (she already has a place) so this will be an investment for us, hopefully to rent out for a few years and then sell for a profit.

Now my concern is that the helpful stats on zoopla say that this area has an average selling price for this kind of property of £125,000 so would that be considered the ceiling? If it is then paying £125,000 plus up to £10k for work would be bad business?

would appreciate thoughts on how accurate the zoopla stats are and general thoughts on my plan.

Cheers all!
Andy

I wouldn't buy anything that cheap with the sole aim of making money.

Zoopla isn't accurate so you must look at previous selling prices. Averages mean nothing, even if the estimates are indicvidually accurate.

If you consider the cost of work, the fact that it will cost more than you expect, then the possibility of discovering things you hadn't budgeted for, then the accumulated cost of buying and then selling, you need a good margin in there. Carpets and decorating add nothing at all.

If you then rent it out, it will need work again before you sell.

You have to buy at the right price. In which case, it's buying cheap that makes the money. You're telling us it's already overpriced, essentially.