Getting started - buy to sell

FreeBear

dimbo61 said: The good old days of watching homes under the hammer and a quick paint job and new cheap kitchen doors do not add £30,000/£40,000 to a property in 6 months.

A house a few doors down from me was bought by a flipper - He did a lot of work internally, and on the face of it, looked OK. The new owner is uncovering no end of bodge jobs and is having to spend a lot of money on fixing it all.

If you are going to buy somewhere to "do up", do a proper job. You won't make any money, but at least you won't gain a reputation of being a bodging flipper.

[Deleted User]

Anyone looking to buy a recently renovated house really needs to inspect it in fine detail to see how well the work was done.

badger09

AdrianC said:

Gavin83 said:

SuperHan said:

Gavin83 said:

As others have pointed out there’s tax implications as well, although this could be avoided if you plan to live in it while the work is being done.

No it couldn't - HMRC look at intention as well as than fact. If the intention is that you will live there for a short time and then sell, it never becomes your 'principal residence' and so doesn't get the tax relief. 

What if you intend to live there long term, do it up and then decide you don’t like it? 😉

Lying to the tax man rarely works well.

Or the tax woman Just saying

Haz200

dimbo61 said:

Sorry if your just starting out on your property empire but it doesn't quite work like that.
£20,000 is not alot of money when buying a property which needs renovation as well.
Lenders will normally only lend on a property with a working kitchen and bathroom.
The good old days of watching homes under the hammer and a quick paint job and new cheap kitchen doors do not add £30,000/£40,000 to a property in 6 months.
Have you got experience in house renovation ?
Could you learn a trade ? 
Do you have family or friends in the trades ?
Electrician, Plumber, Gas Safe Engineer, Brickie, Builder, Painter and Decorator !

Thanks.  I'm partly retired and am in receipt of my full occupational monthly pension and lump sum while working for the same employer 2.5 days a week.  In truth, I have far more than £20k to invest, and yes I have past experience in property renovation for buy to let.  Clearly, everyone's telling me 'Don't do it !!'

AdrianC

Haz200 said:

...and yes I have past experience in property renovation for buy to let.  Clearly, everyone's telling me 'Don't do it !!'

If you have previous experience, then "don't do it" may be an over-simplification.

The questions you need to answer are...
1. How will you finance it all?
A residential mortgage is a non-starter, and you aren't buying to let. The property will likely be unmortgageable.

2. Where will you source the properties?
Why haven't other, more established, renovators beaten you to them, given their established relationships with EAs>

3. Will you make a profit?
Even putting a nominal allowance for your time? Do you have good relationships with the trades for the jobs you can't/don't want to do yourself?

Greymug

Also since you're partly retired, which makes me assume you're no spring chicken, why don't you just take a seat, relax, enjoy the rest of your life and let the young folks earn some money?

SpiderLegs

Greymug said:

Also since you're partly retired, which makes me assume you're no spring chicken, why don't you just take a seat, relax, enjoy the rest of your life and let the young folks earn some money?

Slightly patronising.

Haz200

Greymug said:

Also since you're partly retired, which makes me assume you're no spring chicken, why don't you just take a seat, relax, enjoy the rest of your life and let the young folks earn some money?

Greymug said:

Also since you're partly retired, which makes me assume you're no spring chicken, why don't you just take a seat, relax, enjoy the rest of your life and let the young folks earn some money?

Very ageist comment.  So are you saying 50 and 60-something folks shouldn't get involved because in your mind they're denying younger people the opportunity of getting involved ?  'eh, what ?   

Greymug

I'm saying that when you're old enough to get your pension, if you decide to keep working you are potentially taking a job away from someone who financially speaking might need it more than you.

And we can all imagine the effects that this has on the country's economy...

Haz200

Greymug said:

I'm saying that when you're old enough to get your pension, if you decide to keep working you are potentially taking a job away from someone who financially speaking might need it more than you.

And we can all imagine the effects that this has on the country's economy...

You're making wrong assumptions again - jumping in without thinking.  I'm not entitled to my old age pension for another five years and a few months.  I currently work part time and have an occupational pension that I've paid into for forty years.  How am I taking a job away from a young person ?  We all want to know.