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teaboyjim
Do you think there are still opportunities left or are they mostly all gone?
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Anyone bought a property at auction? Can't work out why this house went for this money...
- Thread starter kingandy2nd
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Brigade77
There is NO money in straight refurbishment. You are competing in a market that is flooded with folk who cannot do the maths.
To make £money you HAVE to add real value, the easiest way to do this is to add bedrooms.
Unless you can work it out yourself, what to look for & what to do with it then you will always struggle.
Do it like Sarah Beeny tried to teach you. Find a popular area that moves fast. Work out the mean selling prices of a 3bed & 4bed property. Let's say the 3beds attract £200 000, the 4beds £300 000. Now find a 3bed below that mean selling price that can be easily extended into a 4bed & will attract that selling price of £300 000. If you do it right you have £100 000 to play with & extend that property, the difference in the cost to extend & it's new selling price is your profit.
Don't put £millionaires kitchens in £200k starter homes & don't put Wickes cheapest white formica in a £400k 4bed & you won't go far wrong.
One of my favourite ever projects was a 3bed bungalow which we extended to 5 bed by building half the floor plan again onto the back. The joiner was an absolute genius in how he built the new roof on top of the old one then dismantled the old roof to convert the loft into the ensuite master bedroom. We took a £250k bungalow & sold it for £550k, IIRC the work cost less than £150k.
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teaboyjim
Do you think this applies all over the UK or more in certain areas than others
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Are you hands on throughout the refurbishment. How many hours are you putting in to earn the £10k?
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Bodd
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Brigade77
Try to think like your target market thinks, what do they 'want'? I gaurantee that top of the list is number of bedrooms. High up on that list is location, in fact the 3 golden rules of property really are location, location & location.
School teachers that marry police officers & want to raise a family don't buy a 2 bed on a ****ty street in a sink estate.
You have to know your area & you have to do a lot of research. If you were a young 'solvent' couple looking to start out or even upgrade what would you be looking for?
To me, it is the easiest thing to look at a prospect property & identify the 'type' that would buy (or rent) the end product.
School teachers that marry police officers & want to raise a family don't buy a 2 bed on a ****ty street in a sink estate.
You have to know your area & you have to do a lot of research. If you were a young 'solvent' couple looking to start out or even upgrade what would you be looking for?
To me, it is the easiest thing to look at a prospect property & identify the 'type' that would buy (or rent) the end product.
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Think in percentage terms rather then in actual values.
If you buy a house for £100k, and add a bedroom, you won't add £100k of value. It'll probably be more like £20k of value added.
Stamp Duty. You can reclaim if you sell within 3 years. The tax liability, however...
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Bodd
I would be to selling not renting renting. Are you saying this new tax is in fact stamp duty
Yes, there’s additional stamp duty applied to secondary or multiple properties
https://www.stampdutycalculator.org.uk/
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Bodd
9 grand on a £300000 house.... what's the reasoning as to why that can be claimed back if you sell with 3 years?
I guess to assist property investors / house flippers.
Also I guess if you can’t buy and sell your houses at the same time, but your goal is to have only one property, it’s a mechanism to stop you being penalised.
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teaboyjim
I've heard similar
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teaboyjim
I agree
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