Renovation project as first time buy

Journeywoman

Sounds good to me

You didn't say unacheivable

glasgowdan

We have to assume the OP knows the area better than us, has done their research and so on. And I wouldn't compare them to an untrained chimp given one of them is a builder by profession.

The OPs question was about getting a mortgage, not "can I make this a good investment or not".

We have the knowledge and background to take on the project

So let's reply with the assumption this is true.

I would absolutely go for it. In terms of a mortgage it sounds like the condition of the property isn't a problem. What I WOULD make sure is that you can get a big enough mortgage to allow you to keep by a LOT more cash than you perhaps expect. As you obviously seem aware, a property can cost a lot more than you think to sort out.

It'd be good to get an update in a year if you go for it.... please reply on this thread with details so we get an alert and see how it's all going!

Journeywoman

Thanks - very valid point. Everyone I see who is doing any kind of renovation says the same thing: there's a lot more things to be done than we thought, and more keep popping up!

A journey of a thousand miles begins with a single step, and posting on this forum was our first step of the journey. If we keep going - I'll probably be on here a lot!

sparky130a

glasgowdan wrote: »

We have to assume the OP knows the area better than us, has done their research and so on. And I wouldn't compare them to an untrained chimp given one of them is a builder by profession.

The OPs question was about getting a mortgage, not "can I make this a good investment or not".

So let's reply with the assumption this is true.

I would absolutely go for it. In terms of a mortgage it sounds like the condition of the property isn't a problem. What I WOULD make sure is that you can get a big enough mortgage to allow you to keep by a LOT more cash than you perhaps expect. As you obviously seem aware, a property can cost a lot more than you think to sort out.

It'd be good to get an update in a year if you go for it.... please reply on this thread with details so we get an alert and see how it's all going!

How many builders have you worked with? I'd take the chimp any day ( I'm jesting)

My point is, to think you'll double a properties value is at best ambitious.

However if the OP has seen an opportunity and takes it all power to them. But let's be Frank (or James) lenders rarely share the same optimism.

Doozergirl

sparky130a wrote: »

I actually agree with you to an extent.

However doubling a properties value at the first attempt? That's rare. And very risky.

If it wasn't every man and an untrained chimp would be doing it.

It's the opportunities that are rare. But they are there and someone has to get them. There are plenty of people who want the opportunity.

And plenty of people who say it can't be done. If the people on this board were all right, then no one would ever make any money from development.

leespot

Best of luck, go for it and enjoy. Do your sums, then do them again. Be strict with the budget - if you absolutely intend to 'flip' it, then remind yourself of that when fitting the place out. Don't be tempted to let your heart rule your head. Don't skimp but don't overspend unnecessarily or your potential profit will dwindle before you know it.

Hoploz

Go for it!

But don't mention that your partner is going to stop paid work to renovate this - they might use this info for their affordability checks!

Journeywoman

Ah yes, I haven't mentioned we're both self employed.

However we do both have over 3 years books showing a continuous steady upward increase in profit each year.

My OH probably won't completely stop his work, his customers probably won't let him anyway

That's the thing about being self employed, you are not your own boss, you just have 100's of small bosses...

Thrugelmir

Journeywoman wrote: »

We have saved up a pretty good deposit between us. We're looking at properties around £125,000. I've seen a 3 bed detached property that has LOADS of potential. I know the potential is there to more than double the value of the property.

So why is the property so cheap? Be obvious to any small local "developer" that there's profit potential. You aren't the only ones scouring the property pages.

Journeywoman

I think you've raised a good point but I'm not quite sure what it is :rotfl:

On the subject, the property came on the market only recently. I have not yet spoken to the agents, who may (at their discretion I'm sure) give me an idea of what kind of interest it's had so far.

My own thoughts so far are that the sellers are just after a quick sale, in which case it's one of those grab it quick bargains (rare, I imagine) or the property has some sort of hidden issue that isn't yet apparent to me, that may affect it's resaleability etc. Or it may just be the dire state it is in, which may include leaking roof, rotten windows, serious damp issues, drainage issues....

any further comment on this would be welcome