View Full Version : ok anyone ever mess with property?
I want to mortgage my house and buy a similar one (that needs work) locally at auction, then do it up with my mate who is a builder and sell it on and make some £££'s
does this sound like a good idea or should i stop watching stupid lunchtime TV programs on channel4 about what a great idea buying houses and doing stuff to them is?
WordsforHire
07-05-06, 06:43 PM
Getting into property development and selling on is a great way to make cash but it takes a lot of outlay, time and disasters before you start making cash back...The telly shows show the good stuff, not the bad but it really is worth it!
I want to mortgage my house and buy a similar one (that needs work) locally at auction, then do it up with my mate who is a builder and sell it on and make some £££'s
does this sound like a good idea or should i stop watching stupid lunchtime TV programs on channel4 about what a great idea buying houses and doing stuff to them is?
My mate is a electrian and other stuff he did some work for the local estate agents. A woman came to sell a house through them that her gran owned before se died, the house didn't even make the market the estate agents bought the house for 120k spend 25k on doing it up and sold it for 185k.
Since then the estate agents have bought 2 more houses for my mate to do up for them.
There is money in it mate :cheers2:
xcite-tv
07-05-06, 06:57 PM
I want to mortgage my house and buy a similar one (that needs work) locally at auction, then do it up with my mate who is a builder and sell it on and make some £££'s
does this sound like a good idea or should i stop watching stupid lunchtime TV programs on channel4 about what a great idea buying houses and doing stuff to them is?
Done a lot of work on property in the 90s in London and other places. and watch it very closely all over the country.... If you do it, you need to spend as little as possible on the house but enough to make it more valuable ...then it all has to be done in 6-12 weeks start to finish ...oh and NEVER, EVER, do it with a mate
my advice is ...its too late, market is all but dead and prices are moving upwards in very few places in the country, if any
These TV programs are ok, but most were filmed a while ago when prices were on the up
Elisha Jade
07-05-06, 07:20 PM
Don't buy blind at an Auction.. always get it checked out and go look at it :)
Mattyboy
07-05-06, 08:11 PM
I bought my 1st place for 25k, did it up and sold it for 100k 4 years later.
Next house bought for 103k and sold it 2 years later 160k
I'm now in a over half million £ place and already added 100k in one year :)
The key is getting that one "bargain" house which is very difficult now and being able to do a good bit of the work yourself.
well I thought I'd look for a cheap terrace like mine in maidstone (because I know the area) or go to a place I think will be going up cos they are putting a new railway in
I dunno maybe I should just buy a porsche and 100,000 scratch cards I heard its rollover this week!
Elisha Jade
07-05-06, 08:52 PM
I like the idea of the porsche :-D Perhaps not the scratchcards though :)
well I thought I'd look for a cheap terrace like mine in maidstone (because I know the area) or go to a place I think will be going up cos they are putting a new railway in
I dunno maybe I should just buy a porsche and 100,000 scratch cards I heard its rollover this week!
I think prices on the Island (isle of sheppey) will be going up rapidly now the new bridge is ready. Get in quick before they go up too much to make any money. I have been in my place for about 2 and a half years and I have made about 50-60k on it already :cheers2:
cock-a-leekie
07-06-06, 12:57 AM
I've done a few and yes it can be good business.
I'd say the most important thing is that you get your property as cheaply as possible because if you don't your project will be fundamentally flawed before you begin. There are plenty of ways other than auction to buy on the cheap. In fact I'd steer clear of them for a first project because unless you know exactly what you're buying and it's real worth, things can get out of hand if you get carried away in the heat of the moment. Also, as a novice bidder you'd be an easy target for trotting. So I'd recommend that you only buy property in your own area and only after you've thoroughly research the actual sale prices (not asking price) for a month or two.
I'd try to be imaginative in your buying, I know of a few developers that are advertising locally with letterbox fliers "cash paid for your house" There's plenty of folk in serious dept and their only asset is their house - so this can be tempting. You could also drop an ad in your local paper etc.
Failing that I'd just wait until you have a feel for the market and get in really quickly (before it goes up officially, get on your estate agents mailing lists and see if you can buy via tender) if not, go in with an offer 10% under, but only on an already good value property. Eventually you'll get one.
For development & modernising I'd speak with all of your local contractors with a view to building a long-term business relationship with them, and make sure they know that you're in it for the long term. This is probably the hardest part of the project and will be subject to the quality, honesty, and loyalty of your local tradesmen - be prepared to do some serious :kissass: at times because you'll need them and they know it, but be firm and don't get bullied/ripped off. Also, don't go overboard on the modernising with conservatries, garages etc. its way too risky and eats into proffits, just keep it simple.
As for selling I personally use an agent, but I sometimes wonder where the 1% goes. They've just sold one for me - it took them 2 months and we agreed an a figure 7.9% under the asking (although it was very much over valued by the agents who agreed to do this) So once again it's well worth speaking to all of your local agents with a view to building a long term business relationship with them. Some of them might be prepared to over value for you, some of them will not.
Good luck & have fun.
Richard
07-06-06, 09:17 AM
Spanno ... I remember reading somewhere that Savills reckon the Kent coast will see good growth in property prices - which is pretty convenient for you. Personally, I'd buy somewhere abroad and take long holidays :)
heidi84
07-06-06, 11:18 AM
yep its def worth doing, buying a house cheep and doing it up, but get the house checked out and plan exactly what needs doing first before you buy. Also take other this into account for eg theres no point buying a house in a crap area (eg DTV street haha) and doing it up cos you still not gonna sell it for much. But if its a nice area i bet you could make some cash from it my oparents bought a house for 30k did it up and sold it for 145k and they only spent 10k doing it up so they had 105k in their pocket to go towards a new house ok they had the house for three years and the market started to go up but they so glad they did it now.
thanks for tips I went to see a terrace today. The guide price is £125-130k and the one two doors down is up for sale @ £156k. This place needs a lot of work and a new kitchen and bathroom so I don't see where the profit is....
I might try and buy a place near Gravesend - I heard there is a new station openning near there next year that will get people to london in 17minutes!
So I thought it might be worth buying something and sitting on it for a year or so.
I love the idea also but wouldn't get involved becuase i don't really understand what i'm doing. if those daytime tv programmes were about porn and mr & mrs jones or whatever setup a site most of us here would laugh at their attempts... same goes for us in property... stick to what you know... but then again if you got the time and money to lose... you can only learn from trying.
can't get a 1 bed flat for 125k round ere!
We just sold our last one a few weeks back (apart from the one we are living in now of course) and the most money we have ever made on any property are the ones that needed nothing doing to them but we just bought them at the right price (mostly brand new) and put them straight back up for sale again. We are no longer involved in the "buy to let" business now but we plan to buy a flat in London this year to use for weekends, half term and stuff for ourselves and that will be a long term investment for us this time.
NumptyNuts
07-07-06, 01:38 PM
before you buy anything I would spend time learnign about morgages.
It was something I did before making my first purchase and it payed off :-)
before you buy anything I would spend time learnign about morgages.
It was something I did before making my first purchase and it payed off :-)
Biggest % we ever made on a property was up near you there actually. We doubled our money in 3 months on a brand new place in the 90s.
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