Building Solutions (Midlands) Blog » Property Development

Property development, should I buy a wreak?

Richard — Sat, 31 Jul 2010 14:11:28 +0000

Many people believe that buying a property that needs lots of building work is a sure way to make a profit, but this is not always true. You really do need to have a certain level of experience before you take on a full home renovation. You may have had experience of D.I.Y. or managing tradesmen to do work on your home, but successful property development is all about the profit.
If you buy even a small renovation project like a 2 bedroom mid-terrace you could be looking at a bill to complete a full refurbishment of £35,000 pounds.
People think well kitchen couple of grand, bathroom a grand, electrics decorating, heating 5 grand, and £500 for carpets should cover it. You need to set aside the time to write out a proper budget. My advice starts at the top and work down.
1. Price up the works to the chimneys, roof, lead flashing, fire break walls, facias, soffits and gutters.
2. External walls, Heli tie fixings, re-pointing, and any structural problems?
3. External windows and doors, bay roofs?
4. Ground works, landscaping and gardening.
5. Mechanical and electrical.
5.1 Plumbing.
5.2 Heating.
5.3 Flues.
5.4 Electrical installation.
5.5 Lighting.
5.6 Appliances.
6. Re plastering after electrical chases?
7. General backing up and re plastering
8. First and second fix joinery doors, door frames, skirting etc.
9. Bathroom, tiles, etc
10. Kitchen units, work tops, taps, etc.
11. Decorating.
12. Carpets and flooring.
These items can soon add up, and there should always be a contingency for the unforeseen, things like rising damp, black mould and positive pressure units. Most people are under cautious when they think of a figure for a contingency. Most experienced property developers allow 15% contingency for unforeseen items such as dry rot etc. Some even add 5% for “unmeasured” that is things they may have missed like asbestos reports or a gas main hidden in boxing. So if an experienced property developer allows up to 20 percent for a £20,000 pound refurbishment that would be an extra £4,000 pounds.
So you may well beat the more experienced developer in the auction room, but if you hit a £4,000 problem you had not bargained for the developer may well have made their money on a better project. So the advice is do not be in a rush there will always be other potential projects so take your time to write out a proper budget.

How to buy houses below market value

Richard — Sun, 25 Jul 2010 15:38:45 +0000

There are several ways to obtain houses below market value, but most methods require a high amount of time and commitment. They range from courting your local estate agent through to attending all the local property auctions. There are some companies that can provide portfolio building and source below market value properties. Some of these companies have suffered in recent times as their operations have become hampered by the recent drought in the buy to let mortgage lending’s markets. If you do chose to invest in below market property in the Midlands, Derby, Stoke-on-Trent, Belper, Ripley, Heanor, of Alfreton and the surrounding areas. There is one company with over 12years trading history and an enviable network of contacts within this area. ambervalleyhomes

Buy below market property

Richard — Sat, 24 Jul 2010 13:45:18 +0000

If you are looking for great property investments one of your main concerns will be getting your new investment property below market value. This way you have a head start compared with many other landlords and property investors in your area. There are several companies that can assist you in building property portfolios and help you find property below market value. It is always a sensible idea to go for a company with a well proven track record and a good trading history. If you are looking for a company to help you with your property investment strategies in the Midlands, we recommend Amber Valley Homes, with 12years of property trading experience they are always please to help new investors with sound advice. ambervalleyhomes

Garden and home offices

Richard — Sun, 18 Jul 2010 19:42:22 +0000

With more and more people working from home and looking for a quietly and peaceful desk location to complete their work from home. Converting a room in their house or building a home extension or detached home office is often the solution.
The most ambitious but perhaps for many the best home office solution is the detached home office, usually built in the garden. These vary widely in cost size and finish but in the range of £3,000 to £30,000.

How to afford the home extension of your dreams

Richard — Fri, 16 Jul 2010 19:48:31 +0000

This is a question that many home owners have been asking themselves for many years, as many still find it hard to re-mortgage their home to raise the funds they need to extend their homes. With mortgage products tipping the 6000 mark for the first time since 2008 and interest rates remaining at record lows many people’s dream of a beautiful home extension is looking brighter.

The ups and downs of UK house prices and the fundamentals of economics

Richard — Mon, 12 Jul 2010 20:19:03 +0000

The UK house price is affected by the fundamentals of economics but driven by sentiment, it follows the ups and downs of the economy and also the sentiment of the UK public. It would seem that both economics and sentiment have conspired for the third consecutive month to see the humble UK house price drop. The recent drop is thought to be partly as a result of the increased supply of homes hitting the market as many chose to chance their arm at a sale once the H.I.P. was gone.

Buying a property that needs repair

Richard — Sun, 11 Jul 2010 17:39:22 +0000

The are two main reasons that people chose to buy property that needs repair, firstly that they plan to give it their own look and feel or they are finding it difficult to get a suitable property in the location they need. The second main reason why people chose to buy a property that needs repair is that they plan to profit from property. Many property buyers simple cannot find the time or inclination to commit to building work, so these problem properties are often available at a discount. So this is how many canny property developers make a living buying up properties that are in a state of disrepair and renovating for a profit.

Should I buy a house at auction?

Richard — Fri, 09 Jul 2010 19:39:22 +0000

As with any house purchase there are positives and negatives, buying a house at auction is no guarantee of a bargain, but most are sold for an attractive price. The main negative is the speed at which you need to move, there is not time for lengthy debate you need to make a firm informed decision and move quickly to get your property finance in place. Not all properties that are sold at auction require work but the vast majority will at least require some attention. You will need to find a good local builder and ask your estate agents advice on how best to maximize your profits from property development.
They may advise a simple refurbishment or they may advise that the type of property you are buying would benefit from a home extension to make the kitchen or living space more appealing. Whatever your plans for buying auction property the best advice is to go to a few property auctions before you think about buying a property, so you get a feel for how property auctions work.

Investors wary as public sector starts to hold back on construction projects?

Richard — Wed, 07 Jul 2010 09:13:47 +0000

Investors are becoming increasingly wary of buying shares in construction companies as fears continue that last week’s budget will have negative impact construction companies’ profits. Those who specialise in local authority contracts have been hit hard and their share prices have suffered. Social housing projects have been one of the areas that have been identified as a potential casualty of the budget cuts.
There is no doubt that news like this adds further pressure to a business sector that is already suffering from some of the toughest times for decades. With a number of local construction companies closing their doors, it is clear evidence that only the toughest will survive.

The number of houses for sale increases by 60% year on year

Richard — Tue, 06 Jul 2010 08:43:46 +0000

The abolition of the Home information packs has undoubtedly given many home owners the motivation to market their properties. Last year was obviously a slow time for property sales and that has been part of the reason why the increase in sales stock has been so dramatic.
The increase in available property has also lead to an increase in the number of viewings which is very positive news for vendors. It must be said that the increase in property viewings is only around a third of the number of new instructions hitting the property market.
Interestingly only two regions in the UK have seen sufficient increase in property sales in June one of which was the east midlands with sale increasing by over 6%.