BLU

iTrader: (27)

Anybody on here do it for a living/hobby/extra income?

Got some money due to me and was thinking of going part time in work and investing my money in doing this. Starting off slowly with the intentions of making it a full time business.

I'm a trained bricklayer by trade so thats most of the building work/plastering side covered but I can turn my hand to most things and anything I can't I know someone who can!!

So if you've done it, how did you find it......... all feedback, positive and negative and any tips, pitfalls etc would be gratefully appreciated

BaojeeX

Depends what you're doing it for. Buying a property, fixing and selling up?

Or buying a property for renting out?

All I can say is do as much as you can yourself as it will keep costs down, electrics/gas if you're not sure of get an expert to do them. Try stick to your budget as much as you can, sometimes you will go over it.

If you do it for renting out a property buy cheap and cheerful as tenants don't care about how much you've spent, they'll trash the place regardless, especially if they're students!

The quality of work is crucial, as it really does make a difference. You want something to last and last, and not have to go back to it 100 times. The property market at the moment is a buyers market, so if you're looking to invest, do buy a property which will pay for it's self (rental, and net you a bit of pocket money.)

I'm not an expert in this field, though I have some experience in it.

Oh and also, you will uncover a lot of bad issues in a property at times, just always make sure you have spare £££ to put that right.

BLU

iTrader: (27)

Ideally I'd like to start off by buying and selling until I've got enough capital to fund large deposits on two properties. I'd then keep one to rent out, sell the other and repeat the process with a view to building up a nice rental portfolio.

I think the problem is hunting down houses that are way below market value. I figure if I can find a way to do that I'm onto a winner!

BaojeeX

Well like I said it's a buyers market at the moment. You would need to have something for very cheap in a desirable area to make a good profit. Having something near a hospital/train station is good, especially in London. Although it can be very expensive to buy, they do get nabbed up pretty quickly.

Finding a house isn't too bad, find a local auction for houses in the city you are in and go from there. Sometimes you can even find private sales which at times, depending on the sellers circumstance, can be had for cheap.

I would mention get a survey done on a property if it's in an absolute mess done, it keeps you in piece of mind. Although with that being said surveys should be done on all before purchase.

Start of with small houses and work your way up.

If houses don't tickle your fancy, try find a commercial property with a flat. Studio apartments are always wanted, especially if you get a place just outside of a city centre. You could always sell the flat and keep the shop for rental. The possibilities are endless.

LeeMac

iTrader: (1)

Best deals are with empty properties, deceased owner.
Mortgaged properties or habited houses offer no discount worth bothering with.
I have never bought with a survey (except for my first 2 with a mortgage in the early 90s). Good roof, windows, electrics is what i start with.
Find an empty house and make a silly offer. I got 40k off a 190k house that needed doing up.

BaojeeX

LeeMac speaks sense. The reason I mentioned the survey is you can never know what's hidden deep in the depths of a house. It's just a security measure for having that piece of mind.

LeeMac

iTrader: (1)

Agree, buying with a survey makes sense
Every surveyor is different as is every bank and so if you are a little para then get a survey to help cover all possibilities.
Solicitors and surveyors are the hardest people to deal with, this is 70% of the housing problem today IMO, seen so many houses sell only for them to come back on the market due to mortgage issues.

One I sold recently had a small extension that was single block and one buyer got put off by their solicitor, next buyer was okay.
The single skin would have been a no no only for it to be getting a big garage built (brick/slate roof) for nothing as part of the deal.

BaojeeX

I have to agree dealing with the Third parties can be a pain. Though if you keep pressure on them, keep them sweet too, then things shouldn't be a problem.

Solicitors seem to make £££ just on leases.

Though, mortgages are the biggest worry at the moment. If you have hard-cash then it can be a gamble which can pay off if everything is done properly and throughly. Though with even that said, and it being a buyers market, houses are not getting sold so prices are dropping as people are more desperate to get rid. Again the economy does affect this, people migrating abroad, job cuts, moving cities etc...

Not everyone has hard cash to blow on a investment purchase, so do think wisely. As if you did buy a property for it to only need major work and you haven't the funds, or something else arises for you to use the funds that you had set to use on said property, then selling it, would be a headache and you may have to sell it at a loss.

EDIT: Just on the topic of actually doing up a place. A lick of fresh paint, fresh carpet and some furniture can really transform a place. Making something light and airy really brings it out, and depending on a property keeping it's period features is also a nice touch. Carboots/auction sites, you can pick up some good gems.

Another tip, with new doors I find them to be absolute cheap. If you do purchase a old property with it's original doors, get them stripped to their wood so all the paint is off. Sand, wax and varnish them if you want. It really does make a difference. You can save £££ and they look good as new. I don't see the point in buying new, unless it's an absolute must. Keeping within budget is difficult as everything is getting expensive, and some of the new stuff does not feel as expensive as the price you paid for it, the quality also lacks.

mike74

The one piece of advice I'd offer you is avoid like the plague any form of retirement appartment, no matter how cheap they seem to be, the demand for them is literally non-existant.

We've been trying to sell one for almost 2 years now and had to shell out £3k a year in service charges for it to be sat empty.

Finally looks like we've hopefully got a buyer now... My dad paid £125k for it in 2007, we've just accepted £40k for it! Can anyone beat that for a price drop!!

Lord Marshall

The biggest problem is high deposits that greedy banks are requiring.if you have the money then it's ok but I don't think people will ever make money like it was made from late 90's to 2007.that era is gone,never to be repeated.so many times I think I could of made millions if I invested back then.

urban

iTrader: (1)

Get someone who is qualified fullstop, never mind sure/not sure.

BaojeeX

Yes you are right, although I should have made that statement clearer. The OP may have some knowledge for instance on how to wire a plug socket, or how to set-up a gas cooker. Depending on the property, it may just need some new sockets, or a full re-wire.

We had a full qualified electrician and he made some errors in his electrics work. Calling him back out was a headache. Though with the OP's trade of work finding these experts should be no problem for him.

BLU

iTrader: (27)

Ouch thats a big hit to take

I'm ok with electrics (domestic anyway) but will leave any gas work to someone who knows what they're doing.
If I can get the business to work then I'd look to invest in the relevant qualifications etc. Would save ££ in the long term.