Not alot happening tonight so I thought I'd do a quick post.
Not a fat lot happening on the poker this week. Probably done about £50 on MTT's without getting close but my chest has cleared up and I'm feeling alot better.
One of the things about working shifts is that you get a fair few days off in the week and I have become hooked on Homes Under The Hammer over the past few months (where they see how much different properties go for at auction and what the new owners do to them before selling or renting the property out and what profit was in it).
It has got to the stage where tbh I want to have a go at it. Given that you are getting jack shit on any savings and there are some bargains to be had, even though house prices have probably not got as low as they will yet, it seems like there could be a few quid to be made.I have worked out how the financing works on auction properties and that you remortgage once the work is completed and though I wouldn't be interested in anything major regarding refurbishments, a lick of paint, new kitchen and bathroom (potentially having to move the bathroom upstairs) etc seems the way forward with a terraced house etc.
One slight snag with my master plan is that I don't come from a building background so fitting a kitchen and bathroom could be tad difficult especially when I have to google how to change a fookin light bulb. However with mates in different trades I am planning to get a couple of them to put a few bob and their expertise in to see whether it can be done. Going out with a few of them next weekend for an all dayer so I reckon I should have a 10 minute window to sell the idea before the first shots go down and everything goes to rat shit.
There are probably still a shed load of things I need to consider but I went to see a terraced house yesterday which an old dear had had which has a guide price of £35-£40k and have searched the prices of houses sold on the same road and they were going for £90k 12 months ago. Even with the downturn they won't have lost 50% so even if things don't happen straight away I reckon the idea itself has its merits.
Oh well just thought I'd post it to look back on in 6 months and see whether I have got my finger out my arse for a change.
GL all
Joke -
Whats the difference between woman and a condom............
Fuck all.. When they're not on your cock they're in your wallet.
Shit but the best I've got.
6 comments:
Hi Mate
Used to hate working nights when I was on shifts but the time off was good. A good site for house prices past and present is http://www.zoopla.co.uk/ it maybe the case your house is now worth jack shit to when you bought it:O)
Thanks for the info and comment mate :)
Hi Gavin. As far as I know investors are not paying anything over 75% of recent market value - and probably a lot less. Most investors are sitting on their cash right now.
Do some research at: -
www.singingpig.co.uk.
Probably the best property forum in the UK.
You need to think about what you do with it once its sorted. What's the local market like? Will it sell quickly? If you want to flip it fast which you will if you want to reinvest the profit. Otherwise is it the kind of area people will want to rent in?
Fixering upping used to be a highly competitive game - probably still is - the best properties are usually snapped up by the pros before they get to auction.
Also factor in your finance costs / legal costs (unless you can buy cash!) - mortgage arrangements fees are silly money now. Plus mortgage / insurance / factor fees / costs until it sells. Plus capital gains tax on sale - say 25% of profit after deducting expenses.
You can make money developing but best done in a slightly healthier and rising market. Hope I haven't killed your dream!
Cheers for the comments mate. In all honesty I posted with a view to getting feedback and you have pointed out other things that I knew I needed to research. (Capital gains etc). Nothings definate yet anyways but it does no harm to look into all avenues and if the right property comes along who knows... Cheers mate
There was something about house bying onm the local new the other day and every single home, in the Leeds auction, went for well over the guide price, up to 25% more in most cases.
I guess whilst some are suffering, the ones who can afford to buy houses for cash aren't really affected by it all!
I just liked the joke :)
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