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Still possible to buy refurb then sell for profit ?

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£!$£&*(£$
£!$£&*(£$ Posts: 29 Forumite
edited 16 June 2018 at 12:52AM in House buying, renting & selling
Is it possible to still buy, add value and sell for a profit?
«13456

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    No, because you don't buy from Estate Agents, you buy from the owners. :D

    As to whether you can turn a profit, well it's always possible depends wholly on the property and the costs to renovate. It does seem unlikely with all the costs of buying and selling, SDLT, not to mention the renovation costs themselves which unless you DIY it, seems unlikely you'll get back more than you spend.
  • jimbog
    jimbog Posts: 2,113 Forumite
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    Even with Homes Under The Hammer some of the margins are pretty thin - even £20K BEFORE taxes and fees is nothing really when you consider that someone slogged their guts out for 6 months - they would have made more money flipping burgers on minimum wage
    Gather ye rosebuds while ye may
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Of course it is. They're being sold to somebody...

    All you need to do is make sure you're at the top of the EA's list of people they call when they get a suitable project on their books, then make sure your numbers work properly.


    Oh, and if you're looking anywhere in the UK, then I guess you're planning on paying full-whack labour rates to get work done, and don't have a team of trusted trades that you can call on? So that massively reduces your chances of profit...
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    No, of course no agent does any calling around of potential buyers. They just shove things straight onto RM and put their feet up...
  • Bass_9
    Bass_9 Posts: 151 Forumite
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    AdrianC wrote: »
    No, of course no agent does any calling around of potential buyers. They just shove things straight onto RM and put their feet up...

    Plenty of houses are sold without ever being on rightmove. I've known many sold via the agent ringing around and you only have to look at the sold house price history on rightmove to see this.

    In my experience it's very helpful to build a relationship with the EA's, to make sure you're one of the people they ring you early. :)
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    For context, there was a post between my two, #4 and #5, which laid scorn on the concept of EAs proactively marketing properties to contacts. Unfortunately, the poster seems to have deleted it before google could cache it.
  • Bass_9
    Bass_9 Posts: 151 Forumite
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    AdrianC wrote: »
    For context, there was a post between my two, #4 and #5, which laid scorn on the concept of EAs proactively marketing properties to contacts. Unfortunately, the poster seems to have deleted it before google could cache it.

    Fair enough! :p
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    jimbog wrote: »
    Even with Homes Under The Hammer some of the margins are pretty thin - even £20K BEFORE taxes and fees is nothing really when you consider that someone slogged their guts out for 6 months - they would have made more money flipping burgers on minimum wage

    This is a key point that's often occurred to me when watching HUTH, they trumpet the profits but when you look at how long it took plus factor in CGT (often forgotten but applicable if you arent living in the house ) the profits really are very low on a time basis and pretty much any second job would pay as much or more with far less hassle and zero risk.
  • Bass_9
    Bass_9 Posts: 151 Forumite
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    AnotherJoe wrote: »
    This is a key point that's often occurred to me when watching HUTH, they trumpet the profits but when you look at how long it took plus factor in CGT (often forgotten but applicable if you arent living in the house ) the profits really are very low on a time basis and pretty much any second job would pay as much or more with far less hassle and zero risk.

    Totally agree.
    One stand out exception I saw was an episode where they converted one single house which had originally been 2 houses back into 2. They made a large profit but these scenarios are pretty rare to come by and of course you have to get planning permission etc. HUTH makes the whole process sound deceptively simple and lucrative!
  • Margot123
    Margot123 Posts: 1,116 Forumite
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    The old adage 'time is money' should always be to the forefront of your calculations.

    Cost it out time and time again before making an offer. Get quotes for professionals to do the work, even if you are doing it yourself (who knows, you could be ill/have an accident). Add a good 20% to your final calculation of time and money. If the project comes under that, then you have done well.
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