Property development.
Discussion
MrBabish said:
Is there money still to be had in this?
My salary is not that brilliant and I will never ever be rich doing what I currently do, the thought of having to work till I drop is in my mind and I have aspirations. Say one had around £70,000 cash to 'play' with, initial thoughts were to purchase a rundown flat (assuming I could find one), renovate and hopefully sell for profit. I've considered quitting the day job for this, but as is likely obvious I've not considered this in massive detail.
Just watch homes under the hammer. That's what the experts do....My salary is not that brilliant and I will never ever be rich doing what I currently do, the thought of having to work till I drop is in my mind and I have aspirations. Say one had around £70,000 cash to 'play' with, initial thoughts were to purchase a rundown flat (assuming I could find one), renovate and hopefully sell for profit. I've considered quitting the day job for this, but as is likely obvious I've not considered this in massive detail.
Whatever you do don't make the mistake of believing anything the local council tell you.
I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
surveyor said:
Just watch homes under the hammer. That's what the experts do....
This. Why do you think you'll be able to buy property cheaper than builders who can do all of the work themselves?blueg33 said:
Nope. We have a pipeline to feed we buy land all the time. The secret is to buy it well and de risk it, price is only part of the equation
It's about finding and unlocking opportunity that others can't see whilst being sufficiently fleet of foot not to be fixed to a particular model. Unless of course you're of sufficient size to be able to bulldoze the competition/local council.Do you have good enough DIY skills to do everything that you don't need a qualified person (gas, electrics, etc) for? Do you know good tradespeople for the other stuff?
Assuming you're working a regular 40 hours and don't have a big commute you have plenty of time to do up a place in your free time assuming you're willing to sacrifice other interests. At least do a few like that before quitting because as said you'll need access to finance until you have money in the bank.
Assuming you're working a regular 40 hours and don't have a big commute you have plenty of time to do up a place in your free time assuming you're willing to sacrifice other interests. At least do a few like that before quitting because as said you'll need access to finance until you have money in the bank.
A mate of mine did this for a while, and had the DIY skills to match.
However he got out eventually. He made money, but worked out he made a lot more for estate agents, solicitors, paid stamp duty and the like. He worked full time, but it meant the family always lived in a building site and had to move out of the finished house into the next wreck!
The small renovations start easy, then you get confident, pick bigger projects, expose yourself to more risk and bite off more than you can chew, so you end up relying on trades you might not know.
Not easy money in any way.
However he got out eventually. He made money, but worked out he made a lot more for estate agents, solicitors, paid stamp duty and the like. He worked full time, but it meant the family always lived in a building site and had to move out of the finished house into the next wreck!
The small renovations start easy, then you get confident, pick bigger projects, expose yourself to more risk and bite off more than you can chew, so you end up relying on trades you might not know.
Not easy money in any way.
I've renovated 4 houses over the past 4 years for BTL.
Everything will take twice as long, and cost twice as much as you think, and there is very little I can't do DIY.
Also be prepared to get your fingers burnt. A mate left work to do full time property development during the last bubble, and was making about 60-80k per property on a 3-6 month refurb/builds. The the crash/correction hit and he had a half finished new build. by the time it was complete he had lost 100k.
I would only consider leaving full time work when you have some experience, and you can factor out house price inflation.
Everything will take twice as long, and cost twice as much as you think, and there is very little I can't do DIY.
Also be prepared to get your fingers burnt. A mate left work to do full time property development during the last bubble, and was making about 60-80k per property on a 3-6 month refurb/builds. The the crash/correction hit and he had a half finished new build. by the time it was complete he had lost 100k.
I would only consider leaving full time work when you have some experience, and you can factor out house price inflation.
Hard work and quite an exposure to risk - especially if you're only able to do one house at a time. The guys who helped when we were building our house have been in the job for 30+ years and they still drive knackered pickup trucks. If it's a lifestyle you'd enjoy, it'll certainly pay for food and holidays but to do well you need to have a serious business head on you - it's not easy money.
There are mutterings in London that the foreign investors are getting out of high end stuff. Whilst it's probably not your market, if there's a bump at the top, it could have quite a wide effect on the South East, which has been fueled by the dizzy heights the property ladder can reach. Personally, I wouldn't be looking to start investing right now.
There are mutterings in London that the foreign investors are getting out of high end stuff. Whilst it's probably not your market, if there's a bump at the top, it could have quite a wide effect on the South East, which has been fueled by the dizzy heights the property ladder can reach. Personally, I wouldn't be looking to start investing right now.
The time we make money is by adding space, in my local market resi is making about £350 per foot, if I can buy something and add space either up or out at significantly less than that then I'm doing Ok.
You will find it hard to find a fixer upper with enough margin......I'm an estate agent and I find it hard. BTL is great if you want to create a pension but unless you have many properties you will find it hard to live off
You will find it hard to find a fixer upper with enough margin......I'm an estate agent and I find it hard. BTL is great if you want to create a pension but unless you have many properties you will find it hard to live off
Quattromaster said:
Whatever you do don't make the mistake of believing anything the local council tell you.
I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
Get it to commitee, then appeal if refused. I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
worsy said:
Quattromaster said:
Whatever you do don't make the mistake of believing anything the local council tell you.
I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
Get it to commitee, then appeal if refused. I own just under an acre of brown field land, in a small village, and approached my local council last June, asking what they thought of my plans to build 4 houses, they said the village needed houses, they liked the plot, sent me a letter suggesting I put In for planning and they would look favourably at it.
So, 48k later, I submit the plans, local parish council love the plans, locals love it, all looking good. However the council then ring me saying they changed the policy in December and were not now allowing building on brownfield, when I asked why I had not been told they said there had been an error with their system.
I met with my case officer today and it was like talking to a brick wall, not interested in the slightest. This build would give 12-15 people a job, for a yr, we employ 4 apprentices within the company, all local lads, keen to learn a trade, do the council care, nope, I fact they cut the meeting short, as they finish work at 3.30pm and had the get back.
Good work if you can get it.
worsy said:
Get it to commitee, then appeal if refused.
This is the route we are heading down, been a tough day today, the whole team are down , we just couldn't believe the attitude of the two case officers, so unhelpful , they had been sent out to deliver a message and deliver it they did. Gassing Station | Business | Top of Page | What's New | My Stuff