Buy - Do Up - Sell

gycraig_2

So you want your dad to put in more money than you and you want to exploit your mates labour so YOU can turn a profit at the expense of there time.

Sounds like a cracking business model

somethingcorporate

gycraig wrote: »

So you want your dad to put in more money than you and you want to exploit your mates labour so YOU can turn a profit at the expense of there time.

Sounds like a cracking business model

:money:

Some people!!!

Cakeguts

Not going to work. You will never get a chance at buying any houses that will make you any money. The best ones will always go to builders or property investors who pay cash. If you need a mortgage then interest on the mortgage repayments will eat into any chance of a profit.

Doozergirl

Cakeguts wrote: »

Not going to work. You will never get a chance at buying any houses that will make you any money. The best ones will always go to builders or property investors who pay cash. If you need a mortgage then interest on the mortgage repayments will eat into any chance of a profit.

We never paid full in cash. In fact, we had commercial mortgages at higher interest rates. Lower LTVs too though. We all start somewhere. The attitude of ‘never’ gets you nowhere.

Margot123

I'm sure the OP's first post coincided with an episode of 'Homes Under the Hammer'.

There are programmes on doing up cars on other channels; they're much more realistic for newbies.

AdrianC

If you buy a property that needs that much refurbishment, is it even going to be mortgageable?

One thing's for sure - you're going to be competing with experienced professionals to buy at anything approaching a realistically profitable price, and they've already got all the contacts.

Oh, and don't forget that if you're buying with the intent of improving and reselling, then it counts as a business activity, so you're going to be paying income tax on your profit.

Doozergirl

Margot123 wrote: »

I'm sure the OP's first post coincided with an episode of 'Homes Under the Hammer'.

There are programmes on doing up cars on other channels; they're much more realistic for newbies.

Are they? I don’t know the first thing about cars and don’t really care either. Why would I have done that if I loved architecture and design? Most of us buy houses too.

OP, there are books out there. Sarah Beeny wrote Profit from Property or suchlike and she does know what she’s talking about. Even the presenters on HUTH are clueless. I can’t allow myself to watch it as they talk such rubbish about building work; often complete untruths.

OP, if you want to buy a house and fix it, do it. But try and learn from wherever you can. This board is full of people who say ‘you can’t’ when ‘they don’t’ but someone has to. I do think it’s much more financially viable and easier to learn by living in any project as your own home first and taking it slowly. It isn’t easy, it isn’t guaranteed money, but it’s yours and you can take time and care over it. Quality is important, have integrity - I’m glad that your conversation does include plastering and electrics etc. That’s a good start.

AdrianC

Doozergirl wrote: »

OP, there are books out there. Sarah Beeny wrote Profit from Property or suchlike and she does know what she’s talking about.

Yep, she figured the best way to profit from property - get well paid to present a TV series or four, then write a bunch of books off the back of it. Lucrative!

Davesnave

Margot123 wrote: »

I'm sure the OP's first post coincided with an episode of 'Homes Under the Hammer'.

There are programmes on doing up cars on other channels; they're much more realistic for newbies.

I'm not sure about that. Unless there's an aptitude and a serious interest, cars are just a lower-priced way of losing money.

What's realistic is starting small and learning by making small mistakes in something one enjoys and is passionate about, not diving-in at the deep end and hoping mates will bale you out.

I would say the OP needs to gain at least one building skill to start with and go from there. If this means working on others' projects first and learning on the job, then so be it.

I've learned so much by helping others carry out work on my home in the past few years. I don't think watching You Tube videos, helpful though they are, comes close, but it's all part of the mix.

In the business I started years ago, I became proficient at one thing and then switched when I saw what had the best potential for me and the way I could work. I didn't make a huge amount of money, but it was enjoyable and I made many good friends through it; something that continues today.

I suppose a willingness to learn a skill and the possibility of enjoying the work is what's missing from the OP's posts. For example: "If I am being perfectly honest. I just want to use the money to make money. Either that in property, or a business. I just dont have much to give other then the money "

They almost seem to be writing themselves off before they start by seeing investment capital as the main factor in success.

As the man once said, "It doesn't work like that!"

AlexMac

It might work; and you'd develop useful skills of decoration, carpentry and DIY along the way if my (and Doozergirl and Davesknave's) experience is anything to go by... but if you live near me, you'll need a time machine, as you've missed the boat if you want to make loadsa money!

Case study; I bought a 2-3 bed wreck at auction for £67k - call it £70k with fees, etc, then spent £25k doing it up (new; roof, kitchen, bathroom, wiring, boiler, c/h, plumbing, decor, flooring and carpets).

Funded by a £60k loan and £35k of my own money (a redundancy windfall, savings and earnings over the 5 months it took to do up; luckily I was living cheaply nearby with my partner who was still in work, and I was getting some work)

Let it out for 2-3 years then sold for £180k. So a great success...

BUT; that was 30 years ago; in 1997, in an area where prices suddenly took off (more luck than judgement on my part) Hence the "Time machine" remark.

The house is probably worth £450-500k now and that much work would cost two or three or more times that budget. Putting it way beyond the reach of the average amateur wannabe DIY developer (like me at the time!)

But the idea of buying your own do-upper or extendable property to live in; with or without lodgers is good if you live in an area where you can still buy within your budget? There won't be the meteoric price inflation of the late 90's and 'noughties (nor, hopefully, the 20% drop which some areas saw in 2007/8), but buying your own home will probably be the best investment you ever make