Buy - Do Up - Sell

Cakeguts

AlexMac wrote: »

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

So cost of £95k plus lost earnings over 5 months plus interest on the loan. Minus selling costs. With the benefit of the rise in prices gave you a profit.

I know someone who bought a house for about 7k in another country did nothing to it at all and then sold it for over double a few years later just due to the town it was in going up in popularity and also value. Timing is everything.

Gwendo40

AlexMac wrote: »

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). ......


BUT; that was 30 years ago; in 1997

So your probably looking at at least doubling them refurb costs today

capital0ne

will369 wrote: »

Hi guys,

So I currently live at home with my dad, 26 years old.

In about 2 years I will have £20,000 saved. That would be for the Mortgage.

I do eventually want to move out. But I think I will struggle on my own earning what I do.

I live in Woodbury (Exeter). I would like to live in Exeter.

How much would I need to do it up? Another £20,000?

Is there money to be made in buying a house, and renting it out daily / weekly to people?

You have the right idea - well done, but it will need a bit of commitment and abit of luck, I would say go for it.
But lets get things straight.
Your dad is 26 yrs old!
in 2020 you'll have £20,000 - so you could get a mortgage of say £80k and you could buy a property for £100k
You would like to live in Exeter, well, you may be able to, but now (or 2 yrs time) you'll live where ever there is £100k home which you can spend say £5k to do it up (mates rates you mentioned) and then sell on for say £150k - do this four or five times and you should have a mortgage free home in say 5 or 6 years time if it all goes to plan.

Record and watch Homes Under The Hammer BBC1 weekdays at 10:00am (or as you're a youngster stream it to your phone).

And one more thing - save more, dump your expensive phone contract (PAYG), dump your gym membership - go for run instead, stop buying your Lattes at Costa, and dump expensive sandwiches . - you may have none of these but one way to increase your lumps um for house purchase is to see what you can cut to save.

Then open things like a Flexsave account that pays 5% if their conditions are met - there are other accounts that can help/

Good luck

seashore22

This may be of interest:

https://forums.moneysavingexpert.com/discussion/5031618

3 1/2 years ago the op posted an almost identical thread and are no further forward with their plans.

Doozergirl

capital0ne wrote: »

You would like to live in Exeter, well, you may be able to, but now (or 2 yrs time) you'll live where ever there is £100k home which you can spend say £5k to do it up (mates rates you mentioned) and then sell on for say £150k - do this four or five times and you should have a mortgage free home in say 5 or 6 years time if it all goes to plan.

Record and watch Homes Under The Hammer BBC1 weekdays at 10:00am (or as you're a youngster stream it to your phone).

You gotta love someone who doesn’t read anyone else’s answers and then chimes in with something utterly ridiculous.

£5,000 goes nowhere to ‘doing up’ anything. The audacity of people thinking that they’re so much brighter than the majority of house buyers makes my blood boil.
If you take on a house that needs work, do the goddam work. Everyone deserves a decent house and no one deserves to make a profit from hiding problems or carrying out shoddy work.

£5k isn’t mates rates, it would be slave labour or the OP’s salary sacrifice and low quality fittings.

I can’t allow myself to watch HUTH as half the people literally paint over the cracks. I’ve ‘after’ results too many times where the damp patches are already coming through the paintwork. It is an awful program, the presenters know less than I do and regularly speak mistruths about planning and listing etc and they never actually get to the bit on the program where someone else has actually bought and completed on the damp ridden hole from them.

If one could genuinely spend £5,000 fixing a £150k house, it would sell initially to someone (not the OP) for £145k. If you can buy it for £100k, then you would be able to sell it straight on for £145k.

If you did all the work yourself to save money it’s either a salary sacrifice, in which case you’re not heading towards mortgage freedom, you’re earning a wage.

Do it in your ‘free’ time and you’re extending ownership and incurring interest. That’s fine if you need a home anyway.