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Original poster

To flip in this climate?

42 replies

CPHB2021 · 22/02/2025 19:05

We are considering buying a house, with no intention of making it our home, but to live in, do up and then sell in about 2 years. It's run down and needs modernisation but it's structurally fine.
The house in question is £380k and most houses on the same road sell for £450k onwards.
The works would be roughly £15k-20k. We do feel we have a realistic idea of costs.
My husband is in the trades so a lot would be free labour, though I understand it's his time.
We know it wouldn't be a huge profit but we've no other way of getting a lump sum of cash to help enable us to buy a house that we aim to be in longer term.
Would you do it in this housing market? We do have quite a healthy deposit but are struggling to find a house that we can really see ourselves in long term, we need to save a bit more to get to the next price bracket. We thought this may be a way to help us on the way, whilst paying a mortgage, not rent and because it's a lot under budget, have a much lesser mortgage than if we stretched ourselves to the top of our current budget....

OP posts:
SerenStarEtoile · 22/02/2025 19:10

Hi OP

If your figures really do add up and you can afford the mortgage with some contingency room, it sounds like a good idea.

Having said that, get a good survey in case there’s something you’ve missed.

Original poster
CPHB2021 · 22/02/2025 19:11

SerenStarEtoile · 22/02/2025 19:10

Hi OP

If your figures really do add up and you can afford the mortgage with some contingency room, it sounds like a good idea.

Having said that, get a good survey in case there’s something you’ve missed.

The mortgage is affordable for us, less than we're currently renting for! ( we sold our last house 18 months ago but just can't find what we're after!)

Yes, we will definitely survey the life out of it!

My biggest is concern is the housing market crashing and then being stuck in a house that really doesn't tick our boxes! I know no one knows what will happen... which is the most worrying part!

OP posts:
SummerFeverVenice · 22/02/2025 19:13

It works for a lot of people as a way to work their way up the property ladder. However, it isn’t without risk. I tried the same thing in 2006 and it backfired spectacularly because of the crash. Hopefully that was a one time moment in history and won’t happen to you.

Original poster
CPHB2021 · 22/02/2025 19:16

SummerFeverVenice · 22/02/2025 19:13

It works for a lot of people as a way to work their way up the property ladder. However, it isn’t without risk. I tried the same thing in 2006 and it backfired spectacularly because of the crash. Hopefully that was a one time moment in history and won’t happen to you.

This is my biggest worry. That, and living in a house that really is too small for us BUT if it was only for 2 ish years, it's doable... but being stuck there would be pretty horrific!

OP posts:
Trolllol · 22/02/2025 19:16

I think the days of doing this as a way of navigating the ladder are over. I’d only do up a house I wanted to live in at the moment. The cost of materials are so high.

senua · 22/02/2025 19:18

Sells for £450. Costs £380. Profit £70.
Costs to renovate £20. Stamp Duty £6.5 Legals, EA, etc £25 (once to buy, once to sell)
You are down to £18.5 profit. Assuming all goes well.
Meanwhile your DH is missing out on earning / OT because of spending 'free labour' on the house.
All of above figures are best guesses. There is risk that things might go wrong.
It might be OK for your dream house but a bit tight for a 'flip'.

Original poster
CPHB2021 · 22/02/2025 19:21

Trolllol · 22/02/2025 19:16

I think the days of doing this as a way of navigating the ladder are over. I’d only do up a house I wanted to live in at the moment. The cost of materials are so high.

I do agree, but we can't find a house that we want to make home.
There aren't a huge amount of materials, there is a lot of manual labour; very over grown garden back and front, lots of ripping our horrible carpet, ripping out bathroom and kitchen and replacing & refitting all of which hubby can do. Of course we'd need to purchase kitchen and a bathroom suite, carpets, flooring etc. But no bricks/plaster board, plastering, steels etc needed. Hmm, so difficult to know what to do!

OP posts:
Original poster
CPHB2021 · 22/02/2025 19:22

senua · 22/02/2025 19:18

Sells for £450. Costs £380. Profit £70.
Costs to renovate £20. Stamp Duty £6.5 Legals, EA, etc £25 (once to buy, once to sell)
You are down to £18.5 profit. Assuming all goes well.
Meanwhile your DH is missing out on earning / OT because of spending 'free labour' on the house.
All of above figures are best guesses. There is risk that things might go wrong.
It might be OK for your dream house but a bit tight for a 'flip'.

Yes, it is tight isn't it! But even an extra £18/20k in two years is more than we could save... I'm thinking it's probably too much of a risk for not enough reward. It's so hard to climb the ladder now though 😔

OP posts:
LizzieSiddal · 22/02/2025 19:23

senua · 22/02/2025 19:18

Sells for £450. Costs £380. Profit £70.
Costs to renovate £20. Stamp Duty £6.5 Legals, EA, etc £25 (once to buy, once to sell)
You are down to £18.5 profit. Assuming all goes well.
Meanwhile your DH is missing out on earning / OT because of spending 'free labour' on the house.
All of above figures are best guesses. There is risk that things might go wrong.
It might be OK for your dream house but a bit tight for a 'flip'.

Agree with this. I wouldn't want my dh spending all that time renovating for 18k profit with the added risk that the market is dreadful now and may get worse and you won’t want to stay there.

SummerFeverVenice · 22/02/2025 19:24

Perhaps finding a house that you can renovate and extend is a possibility? So once renovated it isn’t too small?

Sourisblanche · 22/02/2025 19:24

That’s a ridiculously small margin for that amount of effort. Not easy living through building work. I think the days of flipping are over tbh.

Advocodo · 22/02/2025 19:24

If you have done the sums then go for it! Sounds like a good plan to increase your equity for your next home. I am definitely no expert though. Sometime in life you have to take a risk.

senua · 22/02/2025 19:25

People are crying out for good trades at reasonable prices. Get him to do lots of overtime.

SummerFeverVenice · 22/02/2025 19:25

LizzieSiddal · 22/02/2025 19:23

Agree with this. I wouldn't want my dh spending all that time renovating for 18k profit with the added risk that the market is dreadful now and may get worse and you won’t want to stay there.

Show quote history

It’s all the layoffs that are worrying me. Large employers laying off tens of thousands of employees- even if it’s only 300-400 in one town that might be enough to decrease property values in the area as it becomes less economically viable and therefore a less desirable place to live.

Original poster
CPHB2021 · 22/02/2025 19:29

The works are not that intensive so DH wouldn't be spending months and months doing things. We would pay some trades to come in but luckily, we are owed quite a few favours from a plumber and electrician who would do us a very good rate. The garden is undeniably labour intensive but he does enjoy that sort of thing. Internally it's mostly paint, new floor, new bathroom and kitchen and we'd probably spend another month in our rental and get the bulk of that done before moving in. Then once in, the garden etc would start, joinery internally and probably more painting and then we'd buckle up and save for a year or two and then put it back on the market.

Probably looking at it with rose tinted glasses and it's not ideal but we couldn't save that much in two years and just can't find a house that works as a long term home without more of a deposit...

OP posts:
Original poster
CPHB2021 · 22/02/2025 19:30

@SummerFeverVenice that's a good point too! One we hadn't really thought of. Another point to consider!

OP posts:
Pemba · 22/02/2025 19:39

SummerFeverVenice · 22/02/2025 19:13

It works for a lot of people as a way to work their way up the property ladder. However, it isn’t without risk. I tried the same thing in 2006 and it backfired spectacularly because of the crash. Hopefully that was a one time moment in history and won’t happen to you.

It was hardly a 'one time moment in history'. I remember the 90s crash. We bought our first home in the early 90s and sold it at a loss five years later. The 'crash' of about 2008 seemed minor in comparison to the 90s one.

A fall in prices does seem to come round from time to time.

Diazzz · 22/02/2025 19:40

Sourisblanche · 22/02/2025 19:24

That’s a ridiculously small margin for that amount of effort. Not easy living through building work. I think the days of flipping are over tbh.

But they get somewhere to live and are currently renting. Plus if the market moves up they would’ve missed out on that.

Original poster
CPHB2021 · 22/02/2025 19:52

@Diazzz this is our motive but it's hard to judge if it's worth it and the question no one can answer, what if there is a crash! Being a grown up is not all it cracked up to be!

OP posts:
SerenStarEtoile · 22/02/2025 19:57

@CPHB2021

it's hard to judge if it's worth it

Yep, it’s the age-old dilemma!

If I could predict the future….

If it gives you somewhere to live without paying rent, and there’s potential in it either to make a bit of money or even extend it to make it more of a long-term proposition, it’s probably worth it.

senua · 22/02/2025 20:06

Yes, it is tight isn't it! But even an extra £18/20k in two years is more than we could save
£20,000 divide by 2 years divide by 40 weeks in a year (I even give you holidays!) is £250 per weekend. Surely he can earn that?

CellophaneFlower · 22/02/2025 20:19

senua · 22/02/2025 20:06

Yes, it is tight isn't it! But even an extra £18/20k in two years is more than we could save
£20,000 divide by 2 years divide by 40 weeks in a year (I even give you holidays!) is £250 per weekend. Surely he can earn that?

You're forgetting the 2 years of rent they won't be paying though. I also think your 25k for legal and EA fees is very overinflated.

RoamingGnome · 22/02/2025 20:38

By how much is it too small? Are we talking 'I'd like a utility room' or '5 kids in a 2 bed'? If it's just not ideal rather than tiny and is in a decent area - check school catchments & any local planner possibilities then it sounds reasonable provided you could stay 5 years rather than 2 if you had to.

Original poster
CPHB2021 · 22/02/2025 20:39

RoamingGnome · 22/02/2025 20:38

By how much is it too small? Are we talking 'I'd like a utility room' or '5 kids in a 2 bed'? If it's just not ideal rather than tiny and is in a decent area - check school catchments & any local planner possibilities then it sounds reasonable provided you could stay 5 years rather than 2 if you had to.

3 kids in a three bed. Walking distance to our children's school and the high street, so it's 'fine' but small rooms and large ish age gaps between kids so not ideal longer than 4/5 years at an absolute max, for us personally.

OP posts:
Feelingstrange2 · 22/02/2025 21:59

Pemba · 22/02/2025 19:39

It was hardly a 'one time moment in history'. I remember the 90s crash. We bought our first home in the early 90s and sold it at a loss five years later. The 'crash' of about 2008 seemed minor in comparison to the 90s one.

A fall in prices does seem to come round from time to time.

Show quote history

Same.

Our house had been 69k. We bought in 1991 for 52k thinking that was it!...sold 48k in 1994.