Bought my first do it upper

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DSLiverpool

Original Poster:

14,670 posts

201 months

Wednesday 14th August 2013
quotequote all
Mate does the energy surveys for houses coming on the market and called me on a house that is pure homes under the hammer, someone's died in it or gone to a home its terrible and needs everything apart from a roof and walls.

Ive put an offer in and have a builder on standby, I will update this thread as a guide for the inexperienced (me) and how it pans out and any pitfalls.

I cant and wont do any work on it its not my thing so all through the builder who will project manage it and will get a bonus if it comes in under budget or sells above guestimate to ensure good quality work.

Fist up can someone advise a flexible buildings insurer for the project please.

BoRED S2upid

19,641 posts

239 months

Wednesday 14th August 2013
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I will be following this one. I presume its in liverpool and your offer is a pittance?

DSLiverpool

Original Poster:

14,670 posts

201 months

Wednesday 14th August 2013
quotequote all
Wirral and it was already cheap circa 60% of a nice house on the streets price, offered £5k under but will happily pay full asking

DSLiverpool

Original Poster:

14,670 posts

201 months

Thursday 15th August 2013
quotequote all
Offer of £80k accepted, off to agents with ID and utility bill, builder is arranging a basic survey, they say not needed but I have no experience and in my book you buy a house with a survey.

Basic maths are buy for £80k spend £25k max, sell for £130 to 140k in line with other houses sold and for sale on the street. Its a 3 bed semi with garage and off street parking.

BoRED S2upid

19,641 posts

239 months

Thursday 15th August 2013
quotequote all
I live on the Wirral. I presume its Birkenhead way for that money? Basic Maths seems about right £25k is a good enough budget.

DSLiverpool

Original Poster:

14,670 posts

201 months

Thursday 15th August 2013
quotequote all
Bromborough near my work (coincidence), perfect house for someone as its near a health centre, bookies and Tesco - a claimants dream.

The Moose

22,821 posts

208 months

Thursday 15th August 2013
quotequote all
DSLiverpool said:
Bromborough near my work (coincidence), perfect house for someone as its near a health centre, bookies and Tesco - a claimants dream.
Claimants won't be buying wink

What's the long term plan, buy - do up - sell rinse and repeat?

Or buy - do up - keep in portfolio?!

scenario8

6,554 posts

178 months

Thursday 15th August 2013
quotequote all
Christ, £25k barely pays for the kleenex bill I need for crying into when reading my own budget spreadsheet with my 3 bed semi do-er up-er. I've always said I'm doing it wrong.

Best of luck with the project. If it all goes through (and fingers crossed it does) then you must start a thread. Them's the rules.

Incidentally, does it have a kitchen as is? Are there electrics/a heating sytem etc? I ask as some/all mortgage companies will have issues if not.

DSLiverpool

Original Poster:

14,670 posts

201 months

Thursday 15th August 2013
quotequote all
The Moose said:
DSLiverpool said:
Bromborough near my work (coincidence), perfect house for someone as its near a health centre, bookies and Tesco - a claimants dream.
Claimants won't be buying wink

What's the long term plan, buy - do up - sell rinse and repeat?

Or buy - do up - keep in portfolio?!
I am risk / hassle averse, a bit lazy so the plan is someone does all the hassle (everything) I buy the house and pay for the work and split the profit with the guy managing it. If I make £10 - £15k gross for 12 weeks investment its good for me. At the end of the build I may keep it (pay the project manager his cut) and let it or sell it and we can do another one. At this level I am comfy, I can see no risk and in theory no hassle but this thread will be my diary.

Note the chap who found the house does the energy ratings of houses before they go on sale so is ideally placed to find good deals.

The Moose

22,821 posts

208 months

Thursday 15th August 2013
quotequote all
DSLiverpool said:
The Moose said:
DSLiverpool said:
Bromborough near my work (coincidence), perfect house for someone as its near a health centre, bookies and Tesco - a claimants dream.
Claimants won't be buying wink

What's the long term plan, buy - do up - sell rinse and repeat?

Or buy - do up - keep in portfolio?!
I am risk / hassle averse, a bit lazy so the plan is someone does all the hassle (everything) I buy the house and pay for the work and split the profit with the guy managing it. If I make £10 - £15k gross for 12 weeks investment its good for me. At the end of the build I may keep it (pay the project manager his cut) and let it or sell it and we can do another one. At this level I am comfy, I can see no risk and in theory no hassle but this thread will be my diary.

Note the chap who found the house does the energy ratings of houses before they go on sale so is ideally placed to find good deals.
Sounds ideal! Fingers crossed it works out for you in the long run!!

KTF

9,788 posts

149 months

Thursday 15th August 2013
quotequote all
Out of interest, is there a mortgage on the property or did you buy it with cash?

If its a mortgage did you check the fine print about terminating it early as they may not like the idea of lending for only a few months.

DSLiverpool

Original Poster:

14,670 posts

201 months

Thursday 15th August 2013
quotequote all
KTF said:
Out of interest, is there a mortgage on the property or did you buy it with cash?

If its a mortgage did you check the fine print about terminating it early as they may not like the idea of lending for only a few months.
For this purchase no mortgage, hence keeping the project small.

CharlesdeGaulle

26,090 posts

179 months

Thursday 15th August 2013
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Good luck, and I look forward to the updates.

Craikeybaby

10,369 posts

224 months

Monday 19th August 2013
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Sounds like an interesting project, I've added it to the build threads wiki.

What sort of standard are you looking at getting it to? We're already way over £25k on our 3 bed refurb in Coventry, but we're doing it to a fairly good standard as we want to live there for a number of years.

DSLiverpool

Original Poster:

14,670 posts

201 months

Monday 19th August 2013
quotequote all
Survey being done Tuesday, no drama expected.

Im selling this not living or renting it and it will go up for sale during the refurb (interesting hey) so the buyer can have a choice of kitchen etc and we can haggle a bit - Im hoping this strategy / method will result in a ultra fast sale ie deposit taken on day of completion or similar but Im a novice and It may be a stupid idea. (Im definitely doing it this way though)

monthefish

20,439 posts

230 months

Monday 19th August 2013
quotequote all
DSLiverpool said:
Im selling this not living or renting it and it will go up for sale during the refurb (interesting hey) so the buyer can have a choice of kitchen etc and we can haggle a bit - Im hoping this strategy / method will result in a ultra fast sale ie deposit taken on day of completion or similar but Im a novice and It may be a stupid idea. (Im definitely doing it this way though)
How will this work from a tax point of view?

DSLiverpool

Original Poster:

14,670 posts

201 months

Monday 19th August 2013
quotequote all
I declare the profit after expenses on my return I guess?

Craigwww

853 posts

168 months

Monday 19th August 2013
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Watching with interest as I'm currently looking for a similar project :-) Good luck !

DSLiverpool

Original Poster:

14,670 posts

201 months

Monday 19th August 2013
quotequote all
Craigwww said:
Watching with interest as I'm currently looking for a similar project :-) Good luck !
Find a local energy rating surveyor, offer him a decent bung for a nice project he comes across. By accident that's what I have done.

FlashmanChop

1,300 posts

205 months

Monday 19th August 2013
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DSLiverpool said:
Find a local energy rating surveyor, offer him a decent bung for a nice project he comes across. By accident that's what I have done.
And that's why my old firm is being investigated by the OFT. Had the letter 7 August forwarded.

Can't beat a good do'er'up'er.

Some of the ones I've done you struggle to spend £10k, but the returns are huge

Good luck.