Property Development Successes?
Discussion
Hi guys, would like to hear any stories from budding property developers who have made a success of it!
I have managed to get on the property ladder at quite a young age and am interested in buying an additional property to give a lick of paint and sell on. Just wanted to get an idea as to how accessible this investment strategy is to the 'normal' guy. I live in Luton where property prices seem quite reasonable compared to 3 miles down the road!
So if anyone wants to relay their experiences e.g. how proficient at decorating etc, how much capital, where bought, profit
(loss
) made, major barriers faced etc, it would be much appreciated.
Ed
I have managed to get on the property ladder at quite a young age and am interested in buying an additional property to give a lick of paint and sell on. Just wanted to get an idea as to how accessible this investment strategy is to the 'normal' guy. I live in Luton where property prices seem quite reasonable compared to 3 miles down the road!
So if anyone wants to relay their experiences e.g. how proficient at decorating etc, how much capital, where bought, profit
(loss) made, major barriers faced etc, it would be much appreciated. Ed
jamesuk28 said:
Buy low sell high
I second that!!
It all dpends on how you like to do things. There are some who actually do a lot of the workl themselves (ie painting/decorating, wiring plumbing etc). When starting out, this can save £££ and is equal to earning a salary of sorts (ie 'pay' yourslef £5k to do the plumbing & wiring yourself for example).
I have a 'proper' job. So, I use and pay for others to do the actual work. As long as I can get good, reliable troopers I can get the job done.
ALso, you need to decide if you are going to do many low value refurbs per year (ie cheap terrace houses) or fewer, high value refurbs. I prefer the latter, but know some who like to buy & refurb 10+ terrace houses a year. Horses for courses.
GOod luck
Legend83 said:
Oggs - you know the area then? People really rent in Farley Hill? Have you experience of developing in Luton? Cheers for replies so far guys! Oh - and thanks for stating the obvious!
I can't help you with the area (except to say that if you've not been to the Brocket Arms in Ayot st Lawrence for a sunday roast then you're missing out
) but you're certain to need to obtain the absolute best mortgage rates around, that's for sure. with that in mind, may I introduce you too...ME!
feel free to fire questions up on this thread if needs be
I have plans for this kind of scheme as well but I am practising on my own house first.
Working out designs and configuration is more complex than it appears. There are also some rules you have to follow and some you can break, it comes with experience.
We bought a flat and did that up, doing most of the work ourselves. We kept the flat and it is now let out but we refused to follow the advice to paint it white or magnolia. Instead we used period colours and have have very positive comments on it.
We are now looking to extend the house in all directions - upwards with a loft conversion, outwards with a conservatory and downwards with a cellar. We have a meeting with the architect in a couple of week to get the concept drawings settled.
I have learned a lot along the way and there is a lot of hassle doing a place up while trying to live in it (although we will be moving out temporarily when the current project goes through) but done this way I get CGT exemption on the profit
My advice would be to start at the smaller end and work up but the best property to work on is one where you have to gut it and start from scratch. The hardest job is fitting new to old so if you simply rip everything out (with the exception of period features which add to value) it will make the job a lot simpler.
Working out designs and configuration is more complex than it appears. There are also some rules you have to follow and some you can break, it comes with experience.
We bought a flat and did that up, doing most of the work ourselves. We kept the flat and it is now let out but we refused to follow the advice to paint it white or magnolia. Instead we used period colours and have have very positive comments on it.
We are now looking to extend the house in all directions - upwards with a loft conversion, outwards with a conservatory and downwards with a cellar. We have a meeting with the architect in a couple of week to get the concept drawings settled.
I have learned a lot along the way and there is a lot of hassle doing a place up while trying to live in it (although we will be moving out temporarily when the current project goes through) but done this way I get CGT exemption on the profit
My advice would be to start at the smaller end and work up but the best property to work on is one where you have to gut it and start from scratch. The hardest job is fitting new to old so if you simply rip everything out (with the exception of period features which add to value) it will make the job a lot simpler.
I am always sceptical how much there is really to be made out of this. If you are in it for the long term then it makes more sense. Bung the property in to a trust and retire on the earnings... Any monies my company makes will be doing this but with commercial / high end houses.
For the short term quick buck, I am not so sure... how many people watch Sarah Beenys <breasts> and think... I can do this... jack it all in, throw around a paint brush and make 1,000's on a rising market? When the market is static or falling then margins are inevitably squeezed and you could be high and dry with a huge mortgage you cant pay. Although we are not in the 1980's, there is a predicted slow down in property for the next 5 or so years.
If you go for it then good luck. Just keep an eye on those interest rates!
For the short term quick buck, I am not so sure... how many people watch Sarah Beenys <breasts> and think... I can do this... jack it all in, throw around a paint brush and make 1,000's on a rising market? When the market is static or falling then margins are inevitably squeezed and you could be high and dry with a huge mortgage you cant pay. Although we are not in the 1980's, there is a predicted slow down in property for the next 5 or so years.
If you go for it then good luck. Just keep an eye on those interest rates!
Legend83 said:
Oggs - you know the area then? People really rent in Farley Hill? Have you experience of developing in Luton? Cheers for replies so far guys! Oh - and thanks for stating the obvious!
I'm a local-ish
Not had any experience in it but like you I fancy doing it..
Watching them blooding daytime TVs shows is giving me ideas!!
And Minimax is a top bloke as he sorted my mortgage too
And he'll be getting another call when the time comes
Gassing Station | Business | Top of Page | What's New | My Stuff