Property Punt

[Too Late]

As it failed to sell at auction, its only stamp and solicitor fees. Unless i am confused.
Neighbours dont seem happy with the plans looking at the portal.

Plan would be to either Caravan it and work on both at the same time, or live in the current one while work begins on both so we could flip them quickly

Here are a few pictures taken today when i went over to check it out!

[Tom_C76]

You won't refurb and build that extension for £150k, and I doubt you'd build the new one for £250k. And as others have said there's a big lump of stamp duty you've missed.

It's way over priced, to the point that there's no profit in it. And if the market drops in the next 2 years while you build it there's the potential to lose your shirt.

[Croutons]

Property was purchased for 680k in 2015. Buyer went for planning, has got the max, now realises it's a financial death trap.

Good luck if you do it. You'll need it

[Lynch91]

Tom_C76 said:

You won't refurb and build that extension for £150k, and I doubt you'd build the new one for £250k. And as others have said there's a big lump of stamp duty you've missed.

It's way over priced, to the point that there's no profit in it. And if the market drops in the next 2 years while you build it there's the potential to lose your shirt.

This is exactly my thoughts.

[mjb1]

Croutons said:

Property was purchased for 680k in 2015. Buyer went for planning, has got the max, now realises it's a financial death trap.

Good luck if you do it. You'll need it

If they get the 700k guide price (and it doesn't look like they will) they'll be selling at a loss, so they are clearly desperate to bail out of it. They obviously won't want to take less, what did bidding get up to at the auction where it failed to sell?

You're quick man maths are probably a bit on the optimistic side, by the time you've factored in a bit of breathing space, and the hassle of living on/in a building site for 2 years (which you'd have to do for SDLT and capital gains tax to make it feasible), are the potential returns really worth the risk?

[tleefox]

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.

This, all day long.

I work with serious developers, lenders, agents etc. on a daily basis and the vast majority of land sales (i.e. the worthwhile ones) are done without ever making it to the general market.

Those that do either are not feasible fullstop due to a hidden issue, or there is not enough £££ in it to make it worthwhile.