Starting property developing for a living

chappers

trogg wrote: »

chappers ...... loads of info ... ta, will give Zurich a ring in the morning.

there are others out there too just have alittle search around

think I need to give some more information, Buying property for £60000, expecting to spend £30-£40000 on it.

I too think this budget is tight but not impossible , you will have to keep really tight control on this fit the shop out to a really basic level, maybe a new shopfront if necessary. you could always offer to do additional works to it (at a price) to anyone who wants to rent it, though quite often someone will want to do their own.

3)No parking (highway agency)

however 1 and 2 will not be a problem with my proposal.

.

My idea is if there are so many bus services there is no need to have a car, and my target market would be nurses and student doctors of the local Hospital.

I would build a shed (brick) for bikes.

Other shops on the same road have flats above them with no parking, although I don't think any of them are HMOs.

According to the council web site, they are interested in cutting traffic by discouraging driving and encouraging cycling.

Thats the way to go, a car free development and this would adhere to government plan.

chappers

SquatNow wrote: »

I really REALLY dislike amatuer property developers.

You know the ones I mean... the ones who have watched too much property !!!!!! and have convinced themselves that being a "property developer" is a valid occupation.

Lets be honest, if they are successful, then they have just become a project manager.

So why not just get a job as a project manager?

Because it's about controlling your own destiny and being responsible for your own actions, not habving to grind away for someone elses benefit.

SquatNow

chappers wrote: »

Because it's about controlling your own destiny and being responsible for your own actions, not habving to grind away for someone elses benefit.

I understand that, but:
A) You're taking a huge risk, with, in most cases, someone elses (borrowed) money!
They are usually doing something they have NO skills in.

I've got no objecion to builders etc buying houses, improving them and selling them on, but amatuer property developers are doing the work, they are just employing other people.

What it comes down to is most "amatuer property developers" are nothing more than land speculators... the property, when they sell it, is worth no more than it would have been, less expenditure, if they'de done nothing with it.

To compare to TV, if you buy a property at auction, wait 3 months then sell it through an estate agent, you'll make a profit. That profit is not due to your magical "skills" you've put in, it's just HPI and the difference between auction and retail prices.

All they've done is push up house prices and damage the economy.

neverdespairgirl

teabelly wrote: »

BTL mortgages on flats above shops/other commercial premises are tricky. Parking will be an issue as the people living there will have deliveries, friends, family etc who will need somewhere to park.

I think it does depend where - in central London, for example, it's no problem at all.

eco-friendly_2

SquatNow;8354483]I understand that, but:
A) You're taking a huge risk, with, in most cases, someone elses (borrowed) money!
They are usually doing something they have NO skills in.

I've got no objecion to builders etc buying houses, improving them and selling them on, but amatuer property developers are doing the work, they are just employing other people.

What it comes down to is most "amatuer property developers" are nothing more than land speculators... the property, when they sell it, is worth no more than it would have been, less expenditure, if they'de done nothing with it.

To compare to TV, if you buy a property at auction, wait 3 months then sell it through an estate agent, you'll make a profit. That profit is not due to your magical "skills" you've put in, it's just HPI and the difference between auction and retail prices.

Oh dear! looks like SquatNow's 'blew a fuse' what's your pals going to think of you now? You've really let your side down, badly son.:kisses3:...................................................................:cool:

TJ27

SquatNow wrote: »

I really REALLY dislike amatuer property developers.

Hang on a minute SquatNow. I generally agree with your opinions on properties lying empty, holidays homes in Cornwall,etc. But here we have somebody who is bringing a house back into occupation after it being empty for twenty years. I thought that you of all people would applaud that?

trogg

Moneysavinmonkey …… Physical work is not normally a problem, but I have my ‘off’ days , which doesn’t stop me working , it just stops me doing certain things at times.
As for stress…. I have two kids , you're not going to tell me it s going to be more stressful than that.:D
Budget, yes small, but will only have a better idea of how much it’s all going to cost once planning/builders regs have come through.
Structurally I will need a new roof, and some rebuilding to the rear of the property.

SquatNow …… yes I am a amateur property developer, well I will be once I start,
If I was a professional property developer then I wouldn’t be posting on here.
I have to start somewhere
I have seen those property programmes where they fit a new kitchen and bathroom, paint it all magnolia and sell it for £20000 profit the next day, (I know it’s not that easy)
Most of the project will be done myself. (plumbing, heating, bathrooms, kitchen, new floors, joists, etc)
Even squatters have refused to live there.

teabelly …… Business rates are £40.00 a month. (unoccupied)
Haven’t found a buy to let mortgage company yet but I’m sure I’ll find one but the time the development is finished.
As for parking, this property and the one next door are the only ones with a dropped curb and off road parking. None of the other houses have parking, You can’t park on the road (double yellow lines) .
Neighbours have been using the frontage of the shop to park.
As for turning it into two flats, This would be my second preferred option and the most profitable if I was to sell.
I will be able to claim some/all of the VAT back.

Chappers …… The shop will be the last to be done, A new shop front with security shutters will cost as much as a new roof.:eek:

TJ27

I probably go on too much about the management of HMOs and post this link quite often:

http://www.opsi.gov.uk/SI/si2006/20060372.htm

It gives you an idea of how many things you need to consider if you really are going to go ahead with this. Whereas I think your basic idea is sound, I think your timing is terrible and this is a high risk thing you're doing.

I don't have problems with amateur landlords, as long as they ask for advice and learn from it. Which seems to be what you're doing. I deal with so called professional landlords and letting agents almost daily. I don't think I've met one yet who has read the legislation above, so you might actually know more than they do already.

trogg

Thanks for the link TJ27,

I know what your saying, I used to deal with landlords and letting agents on a daily basis when doing my gas safety checks.

Did have a chat with the
Council housing department some time back, they are not in favour of HMOs because they believe the area is saturated already.

True, but most of these HMOs are in very poor condition and almost all are nowhere near bus stops.

I think it’s in a perfect spot , as I’ve said before, hospital a short walk away, and bus stops outside. No need for a car.

If it was turned into a 4/5 bed house it would only be suitable for a family, I would say at least two cars, plus this is a very busy road, I wouldn’t want to bring up my kids there.

red40

Trogg you should also be made aware of the following statutory requirement, particularly schedule 3 is the one most relevant to you, if you are going down the HMO licensable route.

http://www.opsi.gov.uk/si/si2006/20060373.htm

The above was amended recently to effectively remove the issue of wash hand basins being mandatory in each unit of accommodation and is now left to the councils discretion (in a nutshell).

Read as much as you can on renting properties and also ask your council about accreditation, if they run such a thing? This can be useful as some often run one day courses for landlords and their legal responsibilities, I know our council does via the RLA (residential landlords association) and it is continually booked up, since its free :rotfl: