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I know you all must get this kind of query a lot but...

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  • I know you all must get this kind of query a lot but...

    Basically, i really want to go into property development, i know the market is slowing down and all the rest of it, but surely you can still make some sort of profit from doing up a run down place with a sensible budget? I live in south wales and have recently seen a property for £85000, on our wages we can not afford anything much more than that. Looking at the other house prices for the area and street im sure we could make at least a 10k profit. Does any body have any advice or know where I can find out how well houses sell for that area? Its something i have always fancied doing and My boyfriend can do most of the work that needs doing. Any advice would be greatly appreciated. p.s. also is it worth going to property auctions??

    Thanks

  • #2
    First Time Property Developers

    I think the easiest route for those taking up property development is probably to buy, refurbish and let. Selling takes time so the quickest route is to let rather than sell and to do what are termed light refurbishments i.e. new bathroom, kitchen & decorate.

    The main thing to remember is that typically you can mortgage to 85% of the enhanced value, so if you get things right you can get the cash you have input back and hopefully a little more! Make sure you have done your market research and the rent is enough to cover any interest before your purchase, typical rental cover requirement is 120%-130%.

    Theres more on my web-ste if you are interested.
    Mark
    Bridging Loans | Property Development Finance

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    • #3
      thanks

      for you reply, I will have look at your website, do you think it is worth buying the place, doing the refurbishment, and selling it on as soon as it is finished?

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      • #4
        Buy, Refurbish and Sell is a sound strategy, if the property doesn't sell quickly though, then you should be prepared to let.
        Mark
        Bridging Loans | Property Development Finance

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        • #5
          That is some good advice. You really need to have an eye for that stuff.

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          • #6
            i would just say that if you have worked out that you will make 10k the other end be sure that you are correct, it is a small profit and sometimes people who do this for a living get calculations wrong by 10-20k. so just make sure you will actualy make money not lose money.

            many people think being a developer is easy, i have seen lots and lots of people lose money.

            good luck

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            • #7
              Selling on is a lottery at the moment! if you can develop and rent it for 12 months I think you will be in a much stronger position, on the other hand 10K is not a significant amount and can easily be lost with a minor snag during development or a small mis calc, I'd look for somthing with a bit more margin if I were you.

              JollysH1

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