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Good, bad or indifferent?

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  • Good, bad or indifferent?

    Hello
    My other half and I are considering our first ever property development project. We already have a couple of BTL's and so are not really new to the property market. We've seen a repo priced at just £49,950. It sold 3 years ago for over £70k. The owner planned on refurbishing it as a project but ran out of money and it's now been repossessed. We estimate that it could be tidied up and made quite nice for less than £10k. This price is based on our professional contractors quote not our own random opinion. A similar property on the same street is currently o the market for over £80k although we do feel that this is over valued some what.

    Two local estate agents claim that in todays market the property will rent for £400 to £425 per calendar month once renovated with a possibility of even achieving as much as £450 PCM. I'm thinking that this could be a good medium term investment. Buying now, renovating and then renting until prices eventually improve in four or five years time.

    What are other peoples opinions on these figures? Good, bad or indifferent?

    Thanks in advance.

    MJ

  • #2
    Re: Good, bad or indifferent?

    The trouble with the estimates from the estate agents is that these are guesses as much as anything else - we're in a falling property market, so any business plan would need to account for that, IMO.

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    • #3
      Re: Good, bad or indifferent?

      Originally posted by brian View Post
      The trouble with the estimates from the estate agents is that these are guesses as much as anything else - we're in a falling property market, so any business plan would need to account for that, IMO.
      Totally agree with this, the economics of what you are doing don't sound like you would make a load of money out of it. The estimate to get it fixed could quite easily end up being a few grand low, the costs of buying and then selling and all would also eat into your profit. We are in a falling market, ideally you would want to buy at the bottom.
      Northern Ireland Property

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