Monthly Archives: July 2010

Property development, should I buy a wreak?

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.

Harder to profit from buy to let?

With nearly a million people facing cuts to their housing benefits many buy to let landlords will be facing the usual issues with collecting rent from tenants who have little or no funds. There are many in the property sector that feel this could lead to a two tear system. With the lower end of the rental market becoming poor quality and the possible gettoisation of some areas with a high percentage of let properties.

How to buy houses below market value

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

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

Good news for commercial landlords as High Court rules that some company voluntary arrangements are unfair.

A recent high profile court case has given many commercial property owners and managers a feeling that justice has been done. Landlords have long complained that company voluntary arrangements and pre-pack agreements are becoming a refinancing tool rather than a last resort. Retailers in particular have been accused by some in the property sector of using this type of legislation to circum vent lease agreements and pass some of their problems on to landlords. Some administrators have been accused of losing their sense of fail play over the use of company voluntary agreements and pre-pack companies. This recent court ruling will at least set some clearer frame work for retailers and landlords who find themselves in these unfortunate circumstances.

Cash is king for property developers

With large UK developers looking at rights issues and other more imaginative ways of raising finance it is a sure sign that there are some fabulous opportunities out there for speculative property developers with ?cash on the hip?.
Many of the banks and lenders who have played a role in development funding previously are still simple too exposed to commercial property loans. So to mitigate their risks they are not prepared to lend against development sites and commercial properties. So as the old saying goes ?money goes to money?, developers make the cash when they sell but they make the really profits by picking up sites for a fraction of their value. Property Networking

House prices stumble as fundamentals look tougher

With the recent abolition of the Home information pack the speculative house seller has returned to the UK property market. This coupled with a prolonged shortage of mortgage lending has been some of the cause of recent stumbles in the UK house price.
Many think that the UK property market is almost a failure of its own success with prices in many areas returning to 2007 levels. Those who have been stuck in the property trap have been taking advantage of recent gains in house prices and off loading their problem properties.

Garden and home offices

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 save money on selling your house

The humble British estate agent might have been a figure of fun to many of the British public, often stereo typed as driving X5?s, wearing flashy suites and having over groomed hair. Will these jokes become a thing of the past as we see the end of the traditional estate agent? The recent changes in economic conditions coupled with internet technology have forced many agents to change their business models and change the X5 for a ford focus. However hard the estate agent works they cannot overcome the historically low number of house transactions. So they may have to look at secondary income streams such as property management or property auctions to keep their business in good health until the UK property market stages a full comeback.

How to afford the home extension of your dreams

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.