Still possible to buy refurb then sell for profit ?

need_an_answer

Thrugelmir wrote: »

In 6 months the property value could have increased anyway. Without any time or expense expended.

That's true,but then you would still need to factor in some running costs and utilities or council tax payments etc.
It wasn't the case for us because it was mortgage free but theres those payments to take into account too.

you cant just buy a house and sit with it even if the value does go up!

Two main things make house renovations and flipping very expensive nowadays is the extra stamp duty if you already own and the renovation is an additional purchase and the empty property council tax policy that can in some areas find you paying double if the house is unlived in during renovations.
Sadly many if not all councils removed a CT "Holiday" whilst property was renovated several years ago.

factor in selling costs and any value in the capital made by just sitting on a property and waiting for it to increase is virtually gone.

I don't always subscribe to "crashy times" but even I know that areas are not moving that fast these days.

My overall belief is that property is a long term investment rather than something that can be turned to large profit quickly even by renovating.

moneyistooshorttomention

Re the Councils and their varying policies as to how long a property is allowed to remain empty these days before they want CT on it....

.......Could this still be the case if the property itself had actually vanished (ie been demolished) and the plot was sitting empty with nothing on it? (as there would be nothing there to pay CT on).

need_an_answer

moneyistooshorttomention wrote: »

.......Could this still be the case if the property itself had actually vanished (ie been demolished) and the plot was sitting empty with nothing on it? (as there would be nothing there to pay CT on).

A nice idea that I assume works however what if you have an attached house?



The councils I have had dealings with in the past double CT if empty after 12 months and offer no relief in the first 12 months if it is not your main residence


At the time we did our first renovation there was an exemption up to 1 year,luckily we didn't need to go down the demolish route as it was terraced and heritage!

AdrianC

moneyistooshorttomention wrote: »

Re the Councils and their varying policies as to how long a property is allowed to remain empty these days before they want CT on it....

.......Could this still be the case if the property itself had actually vanished (ie been demolished) and the plot was sitting empty with nothing on it? (as there would be nothing there to pay CT on).

If the VOA believe the property to be uninhabitable, it will have the banding deleted. When it's repaired, then it'll be subject to banding as a new property.



https://www.gov.uk/government/publications/council-tax-domestic-properties-in-disrepair-or-derelict/council-tax-domestic-properties-which-are-in-disrepair-or-are-derelict

D_M_E

How about this one from the Have a Look at This thread

http://www.rightmove.co.uk/property-for-sale/property-65765821.html

Could always make an offer before auction.

moneyistooshorttomention

need_an_answer wrote: »

A nice idea that I assume works however what if you have an attached house?



The councils I have had dealings with in the past double CT if empty after 12 months and offer no relief in the first 12 months if it is not your main residence


At the time we did our first renovation there was an exemption up to 1 year,luckily we didn't need to go down the demolish route as it was terraced and heritage!

I've seen a row of terrace houses before now that have had just the end one of the terrace demolished. It took my attention as I'd been in the house-now-missing.

lincroft1710

AdrianC wrote: »

If the VOA believe the property to be uninhabitable, it will have the banding deleted. When it's repaired, then it'll be subject to banding as a new property.



https://www.gov.uk/government/publications/council-tax-domestic-properties-in-disrepair-or-derelict/council-tax-domestic-properties-which-are-in-disrepair-or-are-derelict

The disadvantage being that when reinstated the property may have a higher banding than previously

AdrianC

genau wrote: »

I think sub £250k properties are difficult because many people have this in cash so this puts the prices up and everyone is looking for a fixer up type house and Estate Agents know this and put the price up of project houses.

You seem to be suggesting that's some kind of market-fixing conspiracy cartel, rather than simple supply and demand...


Remember, it's the vendor who sets the actual price, not the agent. The agent simply gives a pointer.

need_an_answer

genau wrote: »

Above £500k there seems to be more opportunity and less competition

Still not convinced that whatever price bracket you choose to develop that it is as easy as you are thinking.

A £500k house has less competition yes however it probably takes longer to find that buyer particularly in certain areas of the country so you'll lose out on having to hold it.

There is also the fact that particular areas have ceiling limits on what the property tends to sell at so it doesn't really matter how well you have done it,if it doesn't fit in the street or location its in then it loses its appeal.

I looked at a house local to me online yesterday that was sold 18 months ago to someone who has clearly refurbished it to a very high standard.
The house sold in 2016 for £200k and is now back on the market at £280k.
Its been slightly extended and totally overhauled and I guess they have put £50k of renovation into it,however its still in the same location it always was and is now £30k more expensive than other properties around it!

My point being that if someone had £280k to spend then they may be better advised looking in an area where most of the houses match that valuation rather than being the most expensive in the street.

need_an_answer

genau wrote: »

Sub £250k project properties are more in demand... so the actual sold prices of these projects is higher than they're really worth, these buyers distort the market sometimes

not always true.

a buyer will pay what something is worth either to them or as dictated via a mortgage offer/surveyor.
The properties don't always go for more than they are worth just because they have been refuebished,they go for the going rate of that type of property in that condition, or they languish around until market value increases.In many cases sellers are forced to sell with minimal profit if any just to shift them.

I don't believe just because you have spent £x on something that it will automatically sell for the price some developers want hence it doesn't drive up the market in the way you suggest