Housing flipping
Discussion
Something I've been mulling over for a while but need a little more information on to take seriously.
Considering flipping houses of not massive value as something between me and my brother. Wondering if anyone here has done the same and made a decent living out of. Maybe buying at 100ish to do a bit of work to.
Plan is to maybe do a couple of houses a year if there's any benefit but need more insight into the logistics and areas worthwhile doing this in.
Value will be low to start with as I'm not really interested in renting.
Any advice greatly appreciated.
Considering flipping houses of not massive value as something between me and my brother. Wondering if anyone here has done the same and made a decent living out of. Maybe buying at 100ish to do a bit of work to.
Plan is to maybe do a couple of houses a year if there's any benefit but need more insight into the logistics and areas worthwhile doing this in.
Value will be low to start with as I'm not really interested in renting.
Any advice greatly appreciated.
The extra stamp duty hurts for starters, then unless your really handy and complete most of the work yourselves the labour costs hurt too .
Then remember that from spending your money to getting a return you'll be lucky if it's 7 months , 9 months is doing well , if the houses stick around your looking at over a year .
I don't do it any more , i don't think it's worth it these days at the lower end of the market . To be blunt you'll do well to return yourself minimum wage after you've paid everyone out .
Best of luck if you decide to go ahead though , but it's not easy money like it used to be .
Then remember that from spending your money to getting a return you'll be lucky if it's 7 months , 9 months is doing well , if the houses stick around your looking at over a year .
I don't do it any more , i don't think it's worth it these days at the lower end of the market . To be blunt you'll do well to return yourself minimum wage after you've paid everyone out .
Best of luck if you decide to go ahead though , but it's not easy money like it used to be .
Mr Pointy said:
Could the six month rule cause problems for your buyers?
How are you going to persuade estate agents to call you first when suitable property comes through their door?
Estate agents dont need any persuading to call you. Quite the opposite, once they’ve got your number......How are you going to persuade estate agents to call you first when suitable property comes through their door?
TBH property auctions are the way to go if you’re thinking of doing the HUTH thing.
I’ve thought about it lots of times, got a couple of rentals that do well, and don’t want another. Don’t want all my eggs in one basket.
It's a bit of a grey area with me at present as the first property would be a steep learning curve. I could call a few estate agents and ask as I'll be a cash buyer but need to think carefully on properties that would be worthwhile projects to take on.
Haven't watched any of these glamourised YouTube videos to distort the real life implications of not getting it right.
Haven't watched any of these glamourised YouTube videos to distort the real life implications of not getting it right.
I do to a certain extent but instead of selling i rent them out, and remortgage at the higher value to buy the next one, usually at auction but occasionally the open market.
Last 3 have been purchased about the 60-70 mark battered and need about 8-10k thrown at them, then worth 100-110, remlrtage to take 75-80k for the next one.
Helps if the market is increasing of course.
As above, you have to be able to do all the work yourself too, this includes all first fixing, plastering, landscaping the whole 9 yards.
Last 3 have been purchased about the 60-70 mark battered and need about 8-10k thrown at them, then worth 100-110, remlrtage to take 75-80k for the next one.
Helps if the market is increasing of course.
As above, you have to be able to do all the work yourself too, this includes all first fixing, plastering, landscaping the whole 9 yards.
Edited by dazwalsh on Tuesday 2nd June 08:31
I probably don't do it well, because it's a hobby - I buy cheap houses not far from me, "In need of modernisation" - electrics, plumbing, things I know. Put in a combi, replumb and rewire it (no central heating is still amazingly common here in 2 up, 2 down terraces), spray on a coat of white emulsion throughout and stick it up for sale.
I don't go near anything that needs roof work, has been underpinned, is structurally dodgy in any serious way, or anything else.
So basically, a 2 bed terrace with a small back yard to stick a bathroom onto, that I can fix up myself. It pays the bills, but that's about it.
I don't go near anything that needs roof work, has been underpinned, is structurally dodgy in any serious way, or anything else.
So basically, a 2 bed terrace with a small back yard to stick a bathroom onto, that I can fix up myself. It pays the bills, but that's about it.
Ham_and_Jam said:
Mr Pointy said:
Could the six month rule cause problems for your buyers?
How are you going to persuade estate agents to call you first when suitable property comes through their door?
Estate agents dont need any persuading to call you. Quite the opposite, once they’ve got your number......How are you going to persuade estate agents to call you first when suitable property comes through their door?
TBH property auctions are the way to go if you’re thinking of doing the HUTH thing.
I’ve thought about it lots of times, got a couple of rentals that do well, and don’t want another. Don’t want all my eggs in one basket.
I do this full time, I don’t make a fortune (I made more doing loft conversions) but it gives me more freedom and I don’t have to work for joe public (a massive bonus) As mentioned the extra 3% stamp duty hurts, every thing costs more than you think it will, and you can’t resell for at least 6 months (unless you find a cash buyer) Also bear in mind you will be paying council tax, utility bills and insurance while you own it. My rule of thumb is to have £50k between what you pay and the final selling price, this allows £20-£25k for the work and other costs, the vital part is knowing what the final asking price will be before you even buy it and how much the work is going to cost.
I know someone who does it but has now worked up the chain and looks for properties he can make a minimum of £200k on. Sometimes things don't sell so it's got to be worthwhile if you're sitting on it for a while. That's probably something to think about whilst the next 12 months plays out as the market will slow down.
Cheaper properties are probably best at the minute - I've always bought as a cash buyer, and never even gone past 6 figures on buying the place.
Properties with an old sofa out the front and a couple of boarded up windows are ideal - they go from horribly undesirable to "Hmm, that's worth a look" with a very small fixing up outlay.
Properties with an old sofa out the front and a couple of boarded up windows are ideal - they go from horribly undesirable to "Hmm, that's worth a look" with a very small fixing up outlay.
I've done three in the past but know a few lads in the trade so tended to get a better rate on the stuff I couldn't do. To be honest it was hard work and I only have confidence in my local area so finding the right place at the right price is difficult.
I aimed to spend six months on the refurb and always found a buyer in that time so was lucky.
Watching homes under the hammer gets the juices flowing but the reality is different but also rewarding.
I aimed to spend six months on the refurb and always found a buyer in that time so was lucky.
Watching homes under the hammer gets the juices flowing but the reality is different but also rewarding.
I put this up for sale today, I’m still busy on the upper flat.
https://www.rightmove.co.uk/property-for-sale/prop...
It looked like this when I bought it.
https://www.rightmove.co.uk/property-for-sale/prop...
It looked like this when I bought it.
PositronicRay said:
The guys that do well, do it whilst house inflation is rampant.
IANAPD
I remember Sarah Beeny saying to a couple.IANAPD
You spent £100k on the house and fees
You spend 6 months full time unpaid doing it up and £25k. You sold it for £150k after selling fees.
So you've made £25K in 6 months. You freely admit that you could have earnt £20k in the job you had.
So in reality, you've made £5k.
But it's a rising market. We asked 3 estate agents to value the original dilapidated house in today's market.
They said that it was worth £115k without doing any work. So in reality, you've put £25k and six months work at £20k into a £115k house costing £160k, and sold it for £150k
You woukd have made more money n oit doing any work on it and going to work in an office.
Little Lofty said:
I put this up for sale today, I’m still busy on the upper flat.
https://www.rightmove.co.uk/property-for-sale/prop...
It looked like this when I bought it.
Nice refurb! It looks very smart.https://www.rightmove.co.uk/property-for-sale/prop...
It looked like this when I bought it.
Pit Pony said:
I remember Sarah Beeny saying to a couple.
You spent £100k on the house and fees
You spend 6 months full time unpaid doing it up and £25k. You sold it for £150k after selling fees.
So you've made £25K in 6 months. You freely admit that you could have earnt £20k in the job you had.
So in reality, you've made £5k.
But it's a rising market. We asked 3 estate agents to value the original dilapidated house in today's market.
They said that it was worth £115k without doing any work. So in reality, you've put £25k and six months work at £20k into a £115k house costing £160k, and sold it for £150k
You woukd have made more money n oit doing any work on it and going to work in an office.
Some people do enjoy fixing up a dump, though - I do, and that's pretty much the only reason I do it. Bigger profit margins and less time involved than you are talking about - but it's what sells and what is available near you that dictates that.You spent £100k on the house and fees
You spend 6 months full time unpaid doing it up and £25k. You sold it for £150k after selling fees.
So you've made £25K in 6 months. You freely admit that you could have earnt £20k in the job you had.
So in reality, you've made £5k.
But it's a rising market. We asked 3 estate agents to value the original dilapidated house in today's market.
They said that it was worth £115k without doing any work. So in reality, you've put £25k and six months work at £20k into a £115k house costing £160k, and sold it for £150k
You woukd have made more money n oit doing any work on it and going to work in an office.
And you might well earn more in the office - but offices aren't usually open 24/7.
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