Still possible to buy refurb then sell for profit ?

shirlgirl2004

Yes it's possible. Here's someone doing it. He pays builders to do the refurbs and buys the properties direct to vendor so gets them cheap.

https://fmp-investments.com/our-properties

Game_Over

genau wrote: »

Is it possible to buy houses from Estate Agents that need refurbishing and then add value to them eg do them up and then sell them on for a profit? I'm not talking about buying at Auctions as that's too risky in my opinion and is more akin to gambling than good business planning

I know it's sort of like what they do on "Homes under the Hammer" but is that a viable model any longer in 2018?

By houses I mean ordinary everyday houses that are under £300,000 in any part of the UK (Excluding London of course)

I've spoken to a few people about this and some investors seem to think its definitely doable but I'm not sure. Others say that there's too much competition for houses that need doing up and people are leaving no room for any profit or worse they want money that would mean after you did the work you'd loose

I know this is a very real thing that can happen and I know of many experienced builders who have bought houses and paid to much and after refurb costs they've lost money!

Do you know of any experienced, or even inexperienced, builders who have ever made money after buying houses and refurbishing them? :cool:

00ec25

genau wrote: »

Experienced ones can make between 30% and 40% net return on capital invested assuming it goes to plan

then why are you asking on here, you should be talking and learning from them since you seem so well "informed" on certain stats. But then again, it could just be that this thread is insubstantial (like your others).

need_an_answer

genau wrote: »

Experienced ones can make between 30% and 40% net return on capital invested assuming it goes to plan

You have experience of this or is it just something you have read?

AdrianC

genau wrote: »

between 30% and 40% net return on capital invested

I rather suspect some weasel-wording around here.


30-40% net means ~50%+ gross, since corp tax and income tax are going to be very relevant. The only way that's happening is if the actual "capital invested" is low, which means borrowing the rest of the money.

Doozergirl

AdrianC wrote: »

I rather suspect some weasel-wording around here.


30-40% net means ~50%+ gross, since corp tax and income tax are going to be very relevant. The only way that's happening is if the actual "capital invested" is low, which means borrowing the rest of the money.

I'm wary of wording like that. If you're actually doing the graft, it isn't about potential gains of a % - it's a potential round number in actual £££.

This whole thread is full of hot air.

need_an_answer

genau wrote: »

30% - 40% return on investment is normal for developers. Verify it by asking a developer or a lending manager to developers

but you have no Actual experience or substance to back this up...and you are clearly not one.


You know what I'm out,this thread and this OP is getting a little bit like the MMD's that pop up,the only difference is the OP hangs around making unsubstantiated or second hand comments.

Debates are for the debate boards,lets keep the housing and rental boards for those that need real advice on a situation.

Hoploz

To answer your question, I think that no, you can't make a decent profit flipping properties anymore, unless possibly if it's your full time business and you have staff on hand to do the work.

Property investment is a long term game. If you stay in long enough there will be profits.... But remember that taxes must be paid on the gain so it's not simple. My view is that it is still a reliable long term investment, and I like it because you are in charge of your own assets, unlike stocks and shares which are dependent on other people.

Crashy_Time

Hoploz wrote: »

To answer your question, I think that no, you can't make a decent profit flipping properties anymore, unless possibly if it's your full time business and you have staff on hand to do the work.

Property investment is a long term game. If you stay in long enough there will be profits.... But remember that taxes must be paid on the gain so it's not simple. My view is that it is still a reliable long term investment, and I like it because you are in charge of your own assets, unlike stocks and shares which are dependent on other people.

House prices are dependent on other people borrowing, and having wages to pay your rent, and as property is very illiquid you are stuck if prices crash or no one will pay your rent level, stocks and shares make much more sense IMO.

Doozergirl

genau wrote: »

Have you ever done work with builders or developers or had dealings with the managers at one of the specialist property investment banks that also support buy to let lending and have you got any idea of what's a typical return on investment type figure? I only ask because you seem fairly experienced

Some people might be surprised at this anyway here is a link suggesting that the 30% return is achievable

"Property developers should aim to work around the 30% profit margin and also have around 30% in terms of a contingency plan if things go wrong. It is important to have good control of your finances because there are additional costs that can wrack up when developing a property."

Source:http://www.bmmagazine.co.uk/in-business/advice/how-to-become-property-developer/

20 years experience and 13 years of sharing it on these boards.

I don't really see the point of the thread.

Money is made by buying below value or increasing square footage. If you can do both, it's helpful.