Discussion
Hi.
Has anyone taken a punt on a property to try and make some money in a 1 or 2 year window?
A plot has come available and has plans to build 2 houses on it. Smallish gardens, both 5 bed houses in the plans. It went to auction but never sold so is now on RM again.
I am interested but was wondering if there were any others on the PH forums who have taken a risk on a project this size or bigger. I dont have the funds to write it off if it goes wrong so just wondering who else has done something similar.
Thanks
Nick
Has anyone taken a punt on a property to try and make some money in a 1 or 2 year window?
A plot has come available and has plans to build 2 houses on it. Smallish gardens, both 5 bed houses in the plans. It went to auction but never sold so is now on RM again.
I am interested but was wondering if there were any others on the PH forums who have taken a risk on a project this size or bigger. I dont have the funds to write it off if it goes wrong so just wondering who else has done something similar.
Thanks
Nick
Too Late said:
Hi.
Has anyone taken a punt on a property to try and make some money in a 1 or 2 year window?
A plot has come available and has plans to build 2 houses on it. Smallish gardens, both 5 bed houses in the plans. It went to auction but never sold so is now on RM again.
I am interested but was wondering if there were any others on the PH forums who have taken a risk on a project this size or bigger. I dont have the funds to write it off if it goes wrong so just wondering who else has done something similar.
Thanks
Nick
If it hasn't sold, that means people who know what they're doing don't think they can make money on it. With the greatest of respect, if no developer wants it why do you think you'll make money on it? Chances are it's priced to the point that it's only going to be of interest for a self builder, but most self builders don't want two together.Has anyone taken a punt on a property to try and make some money in a 1 or 2 year window?
A plot has come available and has plans to build 2 houses on it. Smallish gardens, both 5 bed houses in the plans. It went to auction but never sold so is now on RM again.
I am interested but was wondering if there were any others on the PH forums who have taken a risk on a project this size or bigger. I dont have the funds to write it off if it goes wrong so just wondering who else has done something similar.
Thanks
Nick
if it didn't sell at auction its not sold for a reason, one or more of:
legal issues
consented development not compatible with area/feasible
onerous overage clauses
but most importantly its too expensive, everything will sell for a price. If it failed to sell, even allowing for the above its only because the vendor is wanting more than a good 20+ people think it's worth to make the numbers stack up appropriately.
legal issues
consented development not compatible with area/feasible
onerous overage clauses
but most importantly its too expensive, everything will sell for a price. If it failed to sell, even allowing for the above its only because the vendor is wanting more than a good 20+ people think it's worth to make the numbers stack up appropriately.
Tom_C76 said:
If it hasn't sold, that means people who know what they're doing don't think they can make money on it. With the greatest of respect, if no developer wants it why do you think you'll make money on it? Chances are it's priced to the point that it's only going to be of interest for a self builder, but most self builders don't want two together.
I looked at a plot a year or so ago, it had planning permission and would have been a house to live in.The problem is that both the owner of the plot and any of the builders that I contacted wanted all of the profit and more.
I didn't need a profit, but just to buy it and get it built would have cost somewhere in the region of 20% more than it would have been worth at the time.
OP - I'd be very careful unless you are confident in what you are doing!
Too Late said:
A plot has come available and has plans to build 2 houses on it. Smallish gardens, both 5 bed houses in the plans.
There's a development just like that in our Cheshire village. The houses haven't sold in 10 years. The guy who built them has been saved by low interest rates and being able to rent them out fairly easily.Interesting..
Here is the land and the approved site for 2 houses for those interested.
http://www.rightmove.co.uk/property-for-sale/prope...
Phoning up 2 local estate agents, they all price around £750,000 once complete.
Some very helpful comments so thanks chaps
Here is the land and the approved site for 2 houses for those interested.
http://www.rightmove.co.uk/property-for-sale/prope...
Phoning up 2 local estate agents, they all price around £750,000 once complete.
Some very helpful comments so thanks chaps
That one was on my radar. The small plot size per house (when done) is off-putting.
It also doesn't appeal to private buyers as mortgaging the current plot will likely be based on the single dwelling there, which is fked, mortgageable but fked, so you'd need significant excess over the buy price to sort it and build.
It also doesn't appeal to private buyers as mortgaging the current plot will likely be based on the single dwelling there, which is fked, mortgageable but fked, so you'd need significant excess over the buy price to sort it and build.
Rosscow said:
150k for hosue 1 build is optimistic, isn't it?
House 1 is already there, so it just needs refurbishing and extending.When we were looking at doing this, we were quoted anything between £200 and £300 per square foot for a new build, and most seemed to agree that £200 was quite reasonable, £300 over the top.
That was London/SE though, so you could probably take a bit off that price.
Your maths ignores purchase costs Inc premium for auctioneers plus stamp 25 or 46k. Which is a lot. Even with 150 to refurb the existing house (and I have seen it, that would be reasonable) it has limited curl appeal. It will cost a lot to sort that out.
I think this is a classic case of a seller taking a punt on planning, being given the max possible, then thinking it's going to be sellable. To whom this appeals I could not work out, certainly not me. And I actually looked.
I think this is a classic case of a seller taking a punt on planning, being given the max possible, then thinking it's going to be sellable. To whom this appeals I could not work out, certainly not me. And I actually looked.
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