Hi All
I planning to sell my house and buy two smaller ones, renovate them and sell on at a profit.
I imaging that rewiring, new heating system, kitchen and bathroom will be required but not any major structural work.
I would like to do all of the work myself but am not au fait with the subtleties of the building regualtions to know what problems I'm likely to encounter.
Any advice gratefully received.
Nick Brooks
Judging from your CV..... a) Ring Sarah Beeny b) Get a job in I.T.
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A few years ago, lots of propery development was cushioned by the rising market. Now, it takes more thought and research to make a decent profit. If you can take the gamble, bigger developments make more profit. And check out the ceiling price for the road.
I don't mention on my CV that I've spent the last five years doing up three cottages, have installed one heating system including underfloor heating, done a loft conversion and installed three bathrooms.
Can I have her number please
Got one - sort of - bored
Are you saying that the percentages are bigger on larger developments or just the total returns?
And yet you say you are not au fait with the subtleties of the building regs? Did you get approval for the loft conversion? Was all the waste plumbing in the bathrooms compliant?
MBQ
Good luck, you'll need it. You need to know about BR etc, and be able to answer lots of remaining on the job questions rapidly.
You also need enough experience on projects to be able to be realistic about what is and isnt needed, what it'll cost and how long it'll take. You also need a basic understanding of the market youre dealing with. Without all this info it'll take several times as long, your sale price increase will have all been eaten by works costs, you'll have had to do several things twice, your overall clever plan will have been shattered by BR, and you'll crawl out covering your spend and wishing you'd sat behind a desk for 6 months instead, making a profit.
Maybe you've been watching TV where everyone makes lotsa bucks fast. Ask yourself why thats what they show, and how its achieved.
Money isnt that easy, doesnt grow on trees. You need plenty of knowledge and skills. In a rising fast moving market you could make something anyway, otherwise not. I'd consider a job first.
NT
Percentages can be bigger, especially if you do the work yourself. For a simple example, you build an extension bigger in volume, you don't have the equivalent increase in wall area. And there is more scope for making the place look luxurious but with a judicious mix of posh and cheap. Also, it's like doing several smaller houses at the same time, but less effort. However, things can conspire to make what I've just said utterly wrong ! Simon.
Yes we got building regs approval for the work that HAD to have building regs approval, and as far as I know all the work met the relevant requirements. However when we did the work we were planning to stay in the last house for a very long time and weren't so concerned with meeting the regs as long as we were happy with the standard.
However, entering into property development as a business obviously requires doing things properly and I am not fully up to speed with Part P and it's implications.
For example, to what extend can one "self certify" plumbing and electrical work?
Do a Google on this group by timegoesby. He does this and listed the points to watch out for. It appears that just fitting in medium priced fittings and not overdoing it, with a good state of decoration is all that is needed. A sense of space is needed too. And make the front door look good, the first impressions, Terence Conran said that. So just use IKEA stuff then.
Without knowing FA about building regualtions (sic) Why is it that so many people seem to think that property development is a licence to print money.
Oh Surprise surprise.
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Nobody said it was licence to print money. I've had several major career changes over the last 20 years, and haven't regretted any of them. After graduating in Mechanical Engineering I moved into Interactive TV production in the early eighties and then onto Video editing and eventually Digital Effects.
I've learnt a great deal over the last few years about house renovation and find that my current career isn't very challenging any more. It's clear from the Property Ladder type programmes that complete numpties can made money doing up houses and I thought it was time to have a go.
What's so wrong with that?
I recon that if my wife and I do all the work ourselves we should be able to make a living out of it even if the housing market remains fairly static.
3 bed semis in our area go for about £150k to £200k depending mainly on condition and we estimate it would take about £30k to bring one up to standard (£15k in materials and £15k in our time) which still leaves room for a healthy marginHelpful advice gratefully received
Those numpties actually lost money. They only made money because the market was rising. They would have made more by leaving the houses a year or so. How many don't make money? How many do make a decent profit, when all the time and effort and legal fees , etc are taken into account? Most would make more as bus drives doing overtime.
Know the market and the ceiling in the area. You could have solid gold taps and yet, if the ceiling is 170,000, then that is all you get.
He appears not to have posted here for some time. Perhaps some irate buyers have caught up with him?
Fine for a chav flat in MK, pet.
And of course the cheapest combi you can find.
Its also clear from the Property Ladder type programmes that complete numpties *THINK* they can made money doing up houses.
Nothing, but to make a living from it is an entirely different ballgame it takes many skills and a large portion of luck to succeed in the long term. I started at 18 and believe me there are quicker and easier ways to get rich quick.
Don't give up the day job :-)
-** snip senility **
Long term, I don't know anyone that hasn't made good money in property.
To make money in property, you don't need luck, you need some balls, good sense and having done all your homework properly. The luck is when property prices are rocketing regardless of your input.
Nick
I did exactly what you are planning 3 years ago, moved out of IT into property. You need to think very carefully about cashflow. If you only enough cash behind you to keep you afloat for at least 12 months don't take on a project you think will take more than 6 months. You can make money, sometimes a lot and sometimes nothing so watch out! I did well enough at the start to let me sit on my existing properties until the market picks up. I'm renting them until I can get a decent return and now looking at foreign property whilst the UK market is static. Right now I would consider if its the best of times to get into property.
Have you thought at supplimenting you income by contracting whilst working on your own projects? Building doesn't pay *anything* until you sell and there can be a big gap between finishing a project and the completion of a sale!
The alternative to your approach of DIY is to contract out 90% of the work and you just project manage it. When you consider the time savings it can be cheaper.
Just a few thoughts.
What as a property developer with this as your sole income, as is being suggested. You must be another I.T. dreamer..
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No, I'm not in IT and I'm not a dreamer. Property development is something I'm starting in part time though. I know many people in who are in property and they are all very well off. That's not to say any 'numpty' can do it and make money, especially in the current market.
You say you've been in property development since you were 18 and I'm assuming you mean you've been in it a long time. If you have been doing it that long you must have had some serious bad luck not to be making a good income solely from property now.
And if you think there are far easier ways to make more money, why aren't you doing those instead?
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