Paul Aspden (MoFast) Posted February 13, 2022 Share Posted February 13, 2022 Are there are experts on the forum that develop properties. I need some advice as I am about embark on another house project. Simply put I have found a property that requires some work but it’s for sale at £350K the other properties either side have recently sold for £450k but they have had new kitchens windows and rendering. I think there is value in taking this on but never been on this size of journey before. Quote Link to comment Share on other sites More sharing options...
Dave Eastwood (Gadgetman) - Club Chairman Posted February 13, 2022 Share Posted February 13, 2022 I believe @LiamMc does. Quote Link to comment Share on other sites More sharing options...
wizzer Posted February 13, 2022 Share Posted February 13, 2022 The only thing I would say about property development is the cost of labour and materials has shot up. But if your hands on and look for a bargain there's money to be made. Sounds like you could spend 50k to make 50k Tony Quote Link to comment Share on other sites More sharing options...
jeff oakley Posted February 13, 2022 Share Posted February 13, 2022 The trick to property renovation is sticking to a plan and know what you want. If it is a project to flip then you want to do it quick and not have to exceed the limit for the area. If it is a home to live in then it is different and you look longer term. So you buy a house for £350k if the others have sold for £450K how much do you want to make and what finish are you looking at? Cost it up as you might spend £50k to make the same back. When we did my Daughters flat, I set a budget of £15k to do a lot of work, kitchen, heating bathroom. Wife and daughter went and spent £12k on the kitchen, so the full refurb was £24k. She had that flat for 5 years and they all went up in value but she sold hers and when you took everything into account she made £45k profit to invest in her new house. The kitchen sold it but it was a risk that paid off as hers broke the area pricing. Looking at her new home the original price to do works has gone up by £10k since covid as everything in building trades has shot up from Steels to wood and plaster. We have just had two rental properties done both two beds, with kitchens bathrooms a lot of plastering new carpets etc and they have cost round figures £20k to do. Had I not been laid up with a bad shoulder I might have saved a bit but these were small homes £50k goes nowhere at the moment. If you have never done anything like this get a good survey as they will spot things you might not. It is worth it unless you are a builder who can fix anything. Do not look at anything with rose tinted spectacles Quote Link to comment Share on other sites More sharing options...
Steve (sdh2903) Posted February 13, 2022 Share Posted February 13, 2022 A friend of mine has done this very successfully, he tells me that the key is speed to maximise profit. If its a big house with only you doing all the work at evenings and weekends then the mortgage costs etc eat too much into your profit. Unless you don't need to borrow to do it that is. He now employs 3 guys full time as it works out cheaper than sub contracting in. but he's doing a house every few weeks now. As above though materials are much higher at present and this may vary area to area, but the Mrs runs a team of tradesmen for property maint and they are booked out for weeks, if not months in advance and they can't employ anyone decent. She knows full well that a lot of the guys are doing homers aswell at weekends. Demand is high at the min. Round our way though the property market is mental, houses selling before hitting market, offers sent unseen and offers well in excess of home report values so might well be a very good time to dip your toe so to speak. Quote Link to comment Share on other sites More sharing options...
Paul Aspden (MoFast) Posted February 13, 2022 Author Share Posted February 13, 2022 Thanks to you all for these words of wisdom. It really is helpful. I put our house on the market on Tuesday and we have had multiple offers to consider this weekend. so it’s going to be decision and commitment time soon. massively appreciate the input from you all. Quote Link to comment Share on other sites More sharing options...
MR.C Posted February 13, 2022 Share Posted February 13, 2022 Take it while you can, because 22 is going to see changes. Mega price hike's everywhere , Ni increases and interest rate rises, this has got to be slowed down. Everybody is living middle class, its going to bite hard. Quote Link to comment Share on other sites More sharing options...
LiamMc Posted February 14, 2022 Share Posted February 14, 2022 22 hours ago, Paul Aspden (MoFast) said: Are there are experts on the forum that develop properties. I need some advice as I am about embark on another house project. Simply put I have found a property that requires some work but it’s for sale at £350K the other properties either side have recently sold for £450k but they have had new kitchens windows and rendering. I think there is value in taking this on but never been on this size of journey before. Hi Paul We buy and renovate and sell alot of property in and around Shropshire . Speed is importand and getting your costing right if you want to get in touch i can send you some stuff that will help you analise the finanical viability 2 1 Quote Link to comment Share on other sites More sharing options...
Paul Aspden (MoFast) Posted February 14, 2022 Author Share Posted February 14, 2022 @LiamMc any advice would be greatly appreciated. Can you PM me your phone number Quote Link to comment Share on other sites More sharing options...
IainCameron Posted February 15, 2022 Share Posted February 15, 2022 On 13/02/2022 at 11:13, Paul Aspden (MoFast) said: I am about embark on another house project. Hi Paul, I'm more of a new-build developer rather than a house renovator, but having just read your MoFast update on the sponsors' page, my only question/advice would be whether the new house is a means of raising money or a just change of address with potential for more space/garage etc? I've know plenty of customers and friends who have blurred the line between making an investment in property (in order to make money), and buying a new or additional property for a lifestyle/work-life balance change, and it's rarely gone well as a result of those conflicting requirements. I can't quite work out from your MoFast Update post whether you'd be planning to move, renovate and sell as quickly as possible, or whether you'd move and sit tight for a few years? If you're planning a quick flip, I'd also be asking whether the new house just needs new render/kitchen/etc to match the £100k+ neighbours, or whether it's more like a full-house project? If it's the latter, do you (and your family) have the stomach for all that work going on while you're living there, especially given your rapid success and plans for MoFast expansion? As others have said, speed is of the essence if profit is the key, but there are always loads of not-so-hidden gotchas like stamp duty, estate agent/solicitor fees etc which would rapidly reduce any of your possible £100k increase in house value to something a lot less appealing. Even if it's a relatively easy set of rooms to renovate, the costs of materials alone have gone mad just recently, and labour costs are sure to follow before long. Good luck either way, both with any house move and also with your MoFast development plans, and PM me if you want to talk anything through. IainC Quote Link to comment Share on other sites More sharing options...
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