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to start property developing?

(13 Posts)
redcarrot1 Fri 18-Dec-15 00:15:27

I'm currently looking at all options that will give me flexible working while looking after a young dd.
Say you had £300k at your disposal. Would this be enough to make a worthwhile profit on renovating properties in the south east (baring in mind how expensive it is here), plus provide enough to live off while doing next project etc.?
Too risky?

EssentialHummus Fri 18-Dec-15 00:17:23

Do you have any experience in property / project management?

Any skills / contacts in your current job you can use?

Pollyputhtekettleon Fri 18-Dec-15 06:40:27

Red carrot, I wouldn't have thought so, unless you can get a mortgage too. You would manage to buy an ok flat and rent it out as a landlord I would think and that could give you an income. But property development in the South East, anywhere near London, I doubt it.

SeasonalVag Fri 18-Dec-15 06:57:44

I've done it. It's not as easy as people make out. You need to be super organised, assertive and resourceful plus you need yourself to have practical skills. I found it really stressful and went over budget. I did add value etc but don't think it was worth the hassle, for me anyway.

redcarrot1 Fri 18-Dec-15 07:12:54

Well I'm currently a landlord so have experience maintaining a property. I am an organized and practical person. I find being a landlord passive and would like something with a quicker financial turnaround....maybe all just pie in the sky.

Junosmum Fri 18-Dec-15 07:33:51

The restrictions on mortgages and stamp duty increases for second homes plus capital gains tax may not actually make it worth it these days- sit down and do the sums and see.

SeasonalVag Fri 18-Dec-15 07:34:45

No, I know what you mean, Ive been a landlord too and found it all a bit irritating, having to be on call for random stuff but not really being involved.

Not sure on the housing front as not in the south east but if you can ring fence funds, know reliable trades and know what you're doing, why not go for it?

whois Fri 18-Dec-15 08:50:39

Have you thought about the changes in stamp duty?

scarlets Fri 18-Dec-15 08:57:55

I tend to think it's one of those things that is much harder than it looks, and is maybe best left to builders, roofers etc. That said, I can imagine that the satisfaction of turning an unloved, shabby house into something nice that a family will enjoy, is immense.

We're landlords but our two properties are small and modern. We've no relevant skills to take on projects.

Whatdoidohelp Fri 18-Dec-15 09:10:07

But a flat outright. A one or two bed. Maybe around 100-150k. Go for something that is on a popular development. The ideal first property to test the waters is somewhere that needs tarting up. Carpets, paint, kitchen and bathroom. Nothing structural. In my area most of the banks use a particular estate agent to sell repossessed properties. Often these properties are teaches by owners before the banks take ownership. These are ideal investments. Good luck.

Learningtoletgo Fri 18-Dec-15 10:44:23

'Those who say it can't be done are usually overtaken by those doing it'.

I'm a landlord and I'm currently flipping my own home (we will decide later if we're going to stay or sell). Either way it's a trial run for future projects. I work from home so it gives me the flex to manage the project and constantly keep an eye on budget.

I would say go through the process of putting together a business plan, draw up timelines, rental yield potential, ROI. If the numbers stack up then go for it.

JemimaMuddleDuck Fri 18-Dec-15 10:49:18

South east here (40 minutes outside London) and one bed flats are going for £200k. I'm not sure you will be able to make a great return unless you can do lots of work yourself. If not, you need to consider how easy it is to find tradesmen/get them to do work/quote reasonable prices because my experience is that they are a pain in the backside and expensive.

I would think there are easier ways to make money from home.

EssentialHummus Fri 18-Dec-15 11:06:07

The standard advice in these situations is always to start with a "tart and turn" project - buy something at a discount because it's unloved, been for sale for a while, outdated, poor condition - make cosmetic improvements, and sell on.

It appeals to me as I (inadvertently) did this with my own home, but you need to have a good understanding of the market, how to do up property on a budget and a clear sense of value pre- and post-refurbishment.

I agree with previous posters re tradesmen. Without good people onside, it's likely to be a real battle.

I sometimes see properties with short leases going and think I'd rather like to deal in those - I'm a solicitor so happy to muck about with procedural notices and forms, and again, if the valuations are done right there should be a good uplift in value once you extend the lease. But this kind of thing is a bit "passive" so may not suit everyone.

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