Property Development
Discussion
Is anyone here involved in property development? ie. buying a flat/house doing it up and selling it on for a profit or just renting it out.
What do you do?
Are there still plenty of oportunities considdering the current 'economical crisis' or are there more oportunities to make some cash because of it?
Only reason i ask is becasue i might be able to lay my hands on enough money to start doing something along those lines and to be honest, i'm really quite tempted.
What do you do?
Are there still plenty of oportunities considdering the current 'economical crisis' or are there more oportunities to make some cash because of it?
Only reason i ask is becasue i might be able to lay my hands on enough money to start doing something along those lines and to be honest, i'm really quite tempted.
I certainly am. 
There are people who have been developing property for decades that cant make it work in this market.
You may wish to see what the derivatives market has to say about the sentiment in house prices before commiting anything to becoming the next Sarah Beeny
http://www.telegraph.co.uk/finance/economics/35317...
You may wish to see what the derivatives market has to say about the sentiment in house prices before commiting anything to becoming the next Sarah Beeny
http://www.telegraph.co.uk/finance/economics/35317...
I,m in the commercial market and it's crap at the minute. On the domestic front I think much the same. Probably money to be made but not in the short term its a long game. Big reality check for the would be developers these days most made money from the booming market in the past. Profits will be small if at all.
Hobo said:
"mega bargain" / "auction".
Two words that aren't often found in the same sentence.
This is certainly true in a 'normal' market. However, the only things currently being sold at the local property auction (Reading) are selling at silly prices.Two words that aren't often found in the same sentence.
The auctioneers told me I should set a reserve on one of my plots at £60K - £70K below fair market value, if I wanted to sell. I told them to
off!carcierge said:
...the only things currently being sold at the local property auction (Reading) are selling at market prices.
The auctioneers told me I should set a reserve on one of my plots at £60K - £70K below what I thought they are worth, if I wanted to sell. I told them I was quite happy to hold them until I retire.
EFAThe auctioneers told me I should set a reserve on one of my plots at £60K - £70K below what I thought they are worth, if I wanted to sell. I told them I was quite happy to hold them until I retire.
Market value is what someone is willing to pay, not what an estate agent tells you its worth.
I see it every day at the moment, endless people phoning us to see if we are still interested in buying the land we made offers on 6 months ago (whih they declined). The answer is yes, just not at what we offered then.
Then there's the others who will sell, but think the have the right to be paid more than they paid. Get over it, the market goes both ways & they have just found out the hard way.
I still say that the auction room is not the plae for a bargain as you've got to find the bargains before everyone else knows about them.
I see it every day at the moment, endless people phoning us to see if we are still interested in buying the land we made offers on 6 months ago (whih they declined). The answer is yes, just not at what we offered then.
Then there's the others who will sell, but think the have the right to be paid more than they paid. Get over it, the market goes both ways & they have just found out the hard way.
I still say that the auction room is not the plae for a bargain as you've got to find the bargains before everyone else knows about them.
texasjohn said:
You know those programmes are repeats now, right? 
The current climate is really sifting the wheat from the chaff. There were people who went about claiming to be a property developer (and indeed they were) and making a lot of money out of it without really having a clue, and now they are sitting on absolutely huge mortgages and crapping themselves.
When I look at house prices Vs rent, it seems a waste of time and money to me. Especially if the property is empty for any period, or you have bad tenents, or whatever.
That said, I've got a bit of commercial property (four industrial units) which give a yield of about 8%. However, there's no capital gain in the property value.
That said, I've got a bit of commercial property (four industrial units) which give a yield of about 8%. However, there's no capital gain in the property value.
ShadowNinja said:
texasjohn said:
You know those programmes are repeats now, right?
The current climate is really sifting the wheat from the chaff. There were people who went about claiming to be a property developer (and indeed they were) and making a lot of money out of it without really having a clue, and now they are sitting on absolutely huge mortgages and crapping themselves.
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