Houses from Auctions

mi-key

maydin said:

Plus as a first time house refurbisher, I still think that the actual expenses will be way over the initially budgeted

Can you do 90% of all building work on a house yourself, or would you have to pay people to do it? Doing a bit of DIY is a lot different than taking on major building works. Do you have a full time job, as trying to renovate a house yourself in the evenings and weekends is very hard.

I would say you 'may' make some saving over buying a house that is already done but unless you are incredibly lucky then you aren't going to make any significant profit from it  

maydin

I can do some DIY myself and I am unfortunately full time employed so you might be right...

MultiFuelBurner

maydin said:

Any idea where do I get cheaper building materials?

The shopping around and time wasted and delivery charges for multiple suppliers normally outweighs going with one on a renovation for building materials.

But there are always deals if you are a savvy shopper and have time on your hands and don't need a quick turn around.

theoretica

maydin said:

Besides If I am to buy a property then renovate and sell, do you think that I can earn some premium above the purchased price together with the renovation costs?

Do you have experience buying, renovating and selling other stuff?  Starting with something much cheaper than a house would seem wise to me! 

jonnydeppiwish!

maydin said:

Any idea where do I get cheaper building materials?

Plenty of places but, as previously stated, you’re better off buying it all through one place. The petrol and time costs are significant when added together. Flooring can be the easiest one to get cheaper as it’s a large bulk or refurb spend so finding an outlet (designer carpets.Co.uk, or carpetright clearance stores are good.

But in all seriousness, this is not an easy way to make money, especially in the current housing climate.

I was only able to do about 60% of the work as DIY, but that was over 2 years on both the last properties, and you have to know when to pay to get someone else to do it for you. I was working 4 days a week with all the holidays that teachers get.

Some people who do this full time will only need to spend £15-£20k, but if you’re working you need to look at £40-£50k minimum.

If you’re looking at extensions etc then add another 6 months waiting for that to get through architects and PP as well.

Are you going to live in it whilst renovating? If not, have you factor in any potential additional cost such as capital gains tax (I don’t know if this would be the case but you need
to take it into account).

maydin

It will be a property bought for investment reasons, I will still be living with my brother.

jonnydeppiwish!

Okay so you’re looking at 28% tax on any profits when you sell (minus your annual allowance).

SDLT_Geek

If the house is bought for re-sale then any profit could be liable for income tax, rather than capital gains tax.  https://www.gov.uk/tax-sell-property/businesses

Caz3121

maydin said:

It will be a property bought for investment reasons, I will still be living with my brother.

will you be a cash buyer or need a mortgage?

jonnydeppiwish!

SDLT_Geek said:

If the house is bought for re-sale then any profit could be liable for income tax, rather than capital gains tax.  https://www.gov.uk/tax-sell-property/businesses

Thanks for the info!