property market

[REDSAW]

any one experienced buying and selling houses, buying cheap, renovating and selling in a few months that sort of thing?

just payed of my mortgage (got deeds today) and me n her are thinking sell up, buy something and do it up why we rent!.

what stories can you tell of these modern times?

 

[Ray Stafford]

any one experienced buying and selling houses, buying cheap, renovating and selling in a few months that sort of thing?

just payed of my mortgage (got deeds today) and me n her are thinking sell up, buy something and do it up why we rent!.

what stories can you tell of these modern times?

Did a couple years ago, sworn off it since. If I raised the subject, I think Mrs S might get positively medieval on my bum. And not in a good way.

Congrats on paying the mortgage off though. I have that pleasure to come soon - just 31 years after taking out that 25 year mortgage.

 

[rpm]

Do it too often too quick and you will clobbered for (I think) capital gains tax.

 

[Ray Stafford]

Do it too often too quick and you will clobbered for (I think) capital gains tax.

It used to be that it had to be your main residence for 6 months to get round the CGT issue. I don't know if its still the same.

 

[cr0ft]

A far amount of our turnover (and even more of our profit) is made by fully managed property renovations for our customers. The advice I can give is: -

1.) Don't buy an older house, they are money pits. Avoid anything much more than 60 years old in my opinion, unless you are willing to price to completely gut it.
2.) The highest profit to be made is in converting a house into flats. It also spreads your risk a bit too as it gives you more properties to sell/rent.
3.) Don't pay too much. Negotiate hard on the price (especially if you are a cash buyer) and really research local house sale prices. If you pay too much for a property (like the customer we are working for now) you will never turn it round for a profit which would be depressing!

In my opinion the money is in building new properties but finding the land can be hard. 1/3 of the sale cost of a new build should be profit if you are planning it right. This is the area I'm planning to go into as soon as my mortgage is paid off (5 years hopefully).

Your business plan should allow up to 6 months to sell a place and have a backup plan if it doesn't sell, i.e. will you rent it or live in it?

 

[lame plumber]

get it right and its simple, hit the market wrong, find some issues the cost more than you expect and you can lose a lot. If your desperate to do it, just keep it simple dont ever restore something to your personal tastes, folks might not like green rooms throughout It was easy in the boom times, anyone can do it then, now its harder, loans arent as easy to get for renovators or those buying, you need to be able to plan to be able to rent it out if it doesnt sell and ensure you wont lose money doing so. I managed to do it a few years back, cant be assed to do it now, hurts to much working to a timescale.

 

[Irish]

any one experienced buying and selling houses, buying cheap, renovating and selling in a few months that sort of thing?

just payed of my mortgage (got deeds today) and me n her are thinking sell up, buy something and do it up why we rent!.
what stories can you tell of these modern times?

speak to a mortgage advisor mate they'll give you the best advice, we did similar but we re mortgaged the house we'd paid off and bought one with the money . no point in paying someone elses mortgage while you're doing up your new place . and you save the cost of moving etc

 

[Ray Stafford]

Find out what the pros are doing. I have a customer who has about 140 rental properties.

He often spends 6 months inactive, and once sat on his hands for 3 years, when the market wasn't right. His argument is that he may well waste money chasing his tail in an unfavourable market, and sometimes doing nothing is the best strategy.

 

[plumben]

You have to own the property for 6 months before you can sell it on due to capital gains

 

[stevetheplumber]

if your planning on renting your less exsposed to market swings provided the rent can cover the repayments so if the market drops between buying and selling you have the option to rent and sit tight
with interest rates so low even if you take some wages and 4 percent profit your up

 

[townfanjon]

I have been looking for a property to develop for ages, in a word, it's bloody hard mate !!!

 

[REDSAW]

well, just bought the one i was on about last saturday. they were asking £168k 4 bed detatched. got it for £158k no work to do..thats being rented out. (part own 50%).

now thinking to sell ours, rent for £4.5k a year. buy somethink then bring it up to spec. we will then move into that for a short time untill/unless its sold.
then move on!.

 

[rocketmanbkk]

I did it in the late 90's. But here you could've bought a 1 bed flat for £50k, no stamp duty. Paint it & sell it pretty easily for more.

Haven't done it since 2003 when my daughter was born as I lost my bottle.

I got my house paid & 1 flat rented with small mortgage. I was thinking of another buy to let but refurbs around here are top money & everyone want them keeping prices high.

My goal is in 10 years to have 2 flats rented & paid is my house. Here they achieve £750 pcm. That'll do me.

 

[rocketmanbkk]

well, just bought the one i was on about last saturday. they were asking £168k 4 bed detatched. got it for £158k no work to do..thats being rented out. (part own 50%).

now thinking to sell ours, rent for £4.5k a year. buy somethink then bring it up to spec. we will then move into that for a short time untill/unless its sold.
then move on!.

The problem renting part owned is they usually don't allow it to be rented so need to be careful.

 

[rpm]

Bet that £50k one bed flat is to buy now what £150-170K?

 

[rocketmanbkk]

£135/40k

I rented out 4 at one stage.

I had a good life so won't complain.

 

[townfanjon]

After a lot of conversations and research, the days of nicking cheap houses to 'do up' have gone , unless you are very lucky and in the right place at the right time.

 

[REDSAW]

The problem renting part owned is they usually don't allow it to be rented so need to be careful.

nah, thats ok. its 50% untill it gets inherited . then i will be my bro in laws landlord.lol

 

[rocketmanbkk]

After a lot of conversations and research, the days of nicking cheap houses to 'do up' have gone , unless you are very lucky and in the right place at the right time.

Agreed fully. The good old days are long gone.

 

[townfanjon]

I've missed the bloody bus ............. Again lol

 

[rocketmanbkk]

You can get good rent these days but better to have a decent depo - say 50%.

 

[Ray Stafford]

After a lot of conversations and research, the days of nicking cheap houses to 'do up' have gone , unless you are very lucky and in the right place at the right time.

Agreed fully. The good old days are long gone.

My understanding is that all the best properties go to a tie up between the probate lawyers, a local estate agent and the builder who keeps the first two on retainer.

Solicitor: "Oh, Mrs Smith, condolences on the death of your mother. Now, what were you planning to do with the property? Of course, its in very poor condition, and would cost a lot of money to bring up to building regs, but would you like me to get a valuation for you? Just for insurance purposes obviously. I know a local estate agent, very genuine chap, and well versed in local property prices."

Estate Agent: "Hello Mrs Smith, its David Dodgy here, from Dodgy and B'stard, estate agents. We were asked to call you by Mr. Runne, of the law firm "Sue, Grabbit and Runne" . I understand you would like us to value your late mother's bungalow. Such a shame it wasn't on the market last year, before the prices collapsed. I'm afraid there is little prospect of a sale in the current condition on the open market. Have you considered selling to a developer? Perhaps I could introduce you to Mr James Bodjit, of Bodjit & Scarper?

Builder: <sucks teeth> "Well, missus, I dunno about this. Its in a right state, and no mistake. Probably best to pull it down, level the site and start over. And you wouldn't want people doing... y'know... "things"... in the bedroom that your old mum passed away in, would you? I reckon I could see my way clear to giving your forty grand for it, although I'm robbing myself..."

 

[rpm]

You ain`t joking Ray. That`s exactly what goes on according to a builder I once knew, they don`t ever reach the open market.

 

[Ray Stafford]

You ain`t joking Ray. That`s exactly what goes on according to a builder I once knew, they don`t ever reach the open market.

its been like that since the 90s round here.

 

[rpm]

And here mate.

 

[Ray Stafford]

The trouble is, who's going to do anything about it?

Are you and I going to hang around outside the crematorium, buttonholing people and saying "hey love, sorry to hear about your loss, but don't forget, we-buy-any-house. com" And we arent so dodgy as that shyster lawyer that your mum trusted with her affairs because she was a dotty old bat who couldn't see that she was being mugged over by a legal highwayman!

 

[rpm]

Don`t see what can be done about it Ray, you can sell anything you own to anybody, your house,car, clothes, books, cd`s, dvd`s, wife. Ok maybe not the wife. lol

 

[GasmanxxxR1]

I know a developer who bungs £2000 cash in a brown envelope to the estate agent per house where he gets first dibs

 

[Ermintrude]