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What should I do?

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  • What should I do?

    Ok, found a house for £110k in Leeds thats perfect for developing. I went to see the property, it needs totally gutting, in terms of furniture floors paint, wall paper and a wall that separates the WC and the bathroom needs to come down.

    The garden is also a total mess and would take a massive amount of effort to sort it out.

    Basically needs totally modernised, and at the moment (despite the current owner living in it) I would not deem the house habitable.

    The property has been on the market for over 5 months and has only dropped in price by £10,000 so far.

    The aim is to get the house for under £100,000, spend around £15,000 renovating and put it back on the market in around 3 months time for £150,000. With a view to selling at around £135-140k.

    This would make us a £20-25,000 gross profit.

    However we noticed the other day that the roof has a hole in it, which judging by the rest of the property has probably been there some time and could potentially mean additional issues with the roof of the house.

    We decided to offer £90,000 originally, subject to survey, because there's really no telling from ground level what the extent of the damage is to the roof.

    I thought under the circumstances it was a fair...ish offer. Anyway offer was rejected. Now we can afford to go higher, however what is the best way to tackle this?

    Do we wait a while and then go back and say ok we'll go to X amount?

    Or do we leave it entirely for now?

    Basically I need some advice on how's best to get this house without over paying.

    Any tips, help etc would be greatly appreciated.

    I'll also add that the women who owns the house looked like she was absolutely off her head on drugs while showing me round, hence why I feel this sale may well be more hassle than it's worth.

    I'll also add that there is another house in the street, which although it needs modernised it is tidy and the garden is well kept, is on the market for £140,000. This second house is directly opposite the house I'm looking to buy and is identical in layout, size etc.

    My offer was based on the amoutn of money required to bring the house up to scratch and the effort and time involved in doing that.

    I thought my offer was fair doos, but anyway i'm going on now.

    Any advice or tips on how to play this one would be great.

    Cheers,

    FTMP

  • #2
    Re: What should I do?

    You really need to have a clear idea of how much spend would be required to get the property up to scratch, and then also take into account potential slow sales and loss of value through a declining/stagnant property market.

    It's simply the case that you'll need to do the maths, and for that, you may need to do a full survey before you can get a proper idea of what's required.

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