Property Developing - Still Worth Bothering ??
Discussion
Obviously the days of properties increasing in value regardless of any 'improvements' are gone for the forseeable future but is anybody still doing this full/part time on their own so to speak?
Is it the case that you have to be very diligent in what you buy and how much to pay for for it?
Or can one generally still make a profit if you're not blatantly foolish?
I'd be interested to hear the views of PH
Cheers - Nick.
Is it the case that you have to be very diligent in what you buy and how much to pay for for it?
Or can one generally still make a profit if you're not blatantly foolish?
I'd be interested to hear the views of PH
Cheers - Nick.
The same old simple rule applies, if you buy well and sell well, you'll make money.
The 'Property Ladder' muppet/dreamer days are well over. You have to work hard for your returns, but they can be made providing you stick to the above.
Tough market with developers even taking on loss making jobs just to stay afloat.
The 'Property Ladder' muppet/dreamer days are well over. You have to work hard for your returns, but they can be made providing you stick to the above.
Tough market with developers even taking on loss making jobs just to stay afloat.
You could have a look at some of the PHers posts
http://www.pistonheads.co.uk/gassing/profile.asp?m...
http://www.pistonheads.co.uk/gassing/profile.asp?m...
It depends on what you want to develop.
If you are just starting I imagine you arent looking at building commercial units or industrial sheds.
Banks are starting to lend on residential developments again but they have to be the right type i.e no faceless blocks of appartments.
If you can find a good building plot in the right area and want to build a couple of family homes on it then they should sell quite easily.
The problem is finding those plots, buying them for the right money and then financing the build. Banks will typically only lend you up to 60% of the value but are unlikely to touch you if you have no experience and even if they will you will almost certainly have to provide personal guarantees.
Things are still very difficult, especially if you dont have a lot of experience and a pot of cash.
If you are just starting I imagine you arent looking at building commercial units or industrial sheds.
Banks are starting to lend on residential developments again but they have to be the right type i.e no faceless blocks of appartments.
If you can find a good building plot in the right area and want to build a couple of family homes on it then they should sell quite easily.
The problem is finding those plots, buying them for the right money and then financing the build. Banks will typically only lend you up to 60% of the value but are unlikely to touch you if you have no experience and even if they will you will almost certainly have to provide personal guarantees.
Things are still very difficult, especially if you dont have a lot of experience and a pot of cash.
Exactly that, companies have fixed costs. They can do no jobs at all, earn no cash, and go under, or take on jobs at a loss and at least contribute to these costs, which can help them carry on until things pick up. Bad news for the industry when things get like that though.
Edited by Jem Thompson on Thursday 1st April 12:27
Thanks for the responses so far - I'm not really thinking about 'building' anything, I would have to start very small with a couple of doer-uppers....
It would, at this stage,have to fit around the day job which is my ability to pay the mortgage, currently facing £800-£1000/month all-in for renting somehting not very nice, so figued I might as well pay a mortgage if the right place came up, do the work, make some cash and effectively negate the costs of the mortgage?
Sound like a great idea in principle aye !! Just wondering if it's realistic or pie in the sky at the moment....
I was thinking along the lines of 2 or 3 bedrooms terraces or semis-ds that haven't been touched in 40 years. Basically, Complete re-decoration and probably new heating and bathroom and kitchen sort of things.... Spending max £20K on work and hoping to make £10-£15K in say six months?
Cheers to all...
It would, at this stage,have to fit around the day job which is my ability to pay the mortgage, currently facing £800-£1000/month all-in for renting somehting not very nice, so figued I might as well pay a mortgage if the right place came up, do the work, make some cash and effectively negate the costs of the mortgage?
Sound like a great idea in principle aye !! Just wondering if it's realistic or pie in the sky at the moment....
I was thinking along the lines of 2 or 3 bedrooms terraces or semis-ds that haven't been touched in 40 years. Basically, Complete re-decoration and probably new heating and bathroom and kitchen sort of things.... Spending max £20K on work and hoping to make £10-£15K in say six months?
Cheers to all...
NicoG said:
Spending max £20K on work and hoping to make £10-£15K in say six months?
Cheers to all...
My advice is to get this sort of thinking out of your head. Its people trying to make big returns very quickly that caused the market to crash in the first place.Cheers to all...
Property always was and still is a good investment if you are sensible. But its generally a medium and long term investment rather than short term.
oldschool07 said:
Stupid question probably but how dose taking on a loss making job keep them afloat?
Simply put, because whlst you're not making money, you're still functioning as a company, paying wages etc. In other words, if you can ride out the storm, you can make good the losses when things perk up.Jem Thompson said:
Exactly that, companies have fixed costs. They can do no jobs at all, earn no cash, and go under, or take on jobs at a loss and at least contribute to these costs, which can help them carry on until things pick up. Bad news for the industry when things get like that though.
Exactly Edited by Jem Thompson on Thursday 1st April 12:27
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