Search the Community
Showing results for tags 'costs'.
Found 8 results
How to estimate the cost of a renovation
Charles Pell posted a topic in Flips & RenovationsHi all, I am about to embark on my first property renovation (yay?!?). So far I have made a few offers, and missed all of them. I have a profit margin I hope to achieve of 15% minimum. In order to hope to meet this target, I imagine it pays to have a pretty accurate idea of what a property might cost. I have made attempts to try and price jobs up based on a variety of sources, but I don’t feel comfortable doing it since I have no idea whether my estimates are too high or too low, and I don’t know even whether some of the jobs I am allowing for need doing, or whether I haven’t accounted for certain jobs that would need doing. I have started to wonder whether I should get a professional to do this side of things, allowing me an insight into how a professional would go about it. So my first question is this; should I ask a professional to do it, or would it be better to jump right in and make my own crude estimate, and learn from the mistakes I will inevitably make. (Part of what puts me off doing it myself is that I could be drastically overestimating the cost of a job and therefore not offering enough for a property). The second question: If I was to go down the route of asking a professional in to make an accurate estimate, what kind of professional should I ask? I have read in a book specifically on property renovation that you can get contractors to do it, or quantity surveyors. I don’t know who to approach basically. I look forward to reading what anyone has to say :) Charles
Hi folks, I am new to the Forum although have had a keen obsession in all things property related for many years now! I've finally decided to do something about it & am in the early stages of research - listening to the podcasts & reading up on all things relevant. I live in Edinburgh & my initial plan was to refurbish properties & sell on - flipping - the new term I have recently learnt! I had planned to start off in Edinburgh as I know it extremely well, buying at around £150,000, refurbish & then sell on & repeat. I had planned to try & raise the money myself through a combination of equity in already in our home, selling a property we already let in Edinburgh (bought by my husband in the winners curse period 2007 & valued at less than he paid for) & various other sources. However, having listened to the 2 Rob's I am now rethinking my strategy (leverage, inflation, opportunities etc) & feel perhaps I should go down the lettings route initially, starting off with one property (around £150,000) on a BTL & then another one in 6 months time once I've learnt a bit more & hopefully a 3rd after that. Perhaps moving onto flipping after that. I will be focusing on the Edinburgh area but will also consider East Lothian, Fife & Stirling. I'm looking for some advice on the following: Do you property investors out there think I've missed the boat for flipping in/ around Edinburgh area? (I have listened to the intriguing 18 year cycle podcast)! Does anyone know of a resource that summarises all of the key financial considerations I need to factor in for purchasing, letting, selling properties (i.e. stamp duty, estate agency fees, Solicitors fees, management fees, tax charges etc)? I have a lot of these noted already but want to ensure I don't miss any in my calculations & also to help me decide on my strategy. I am keen to set myself up for success - so any other information you think may help me decide/ determine my strategy would be much appreciated! Thanks :-)
Domus Holmes posted a topic in Other AdviceHi Hubbers I am about to go to my first auction and have been reviewing the legal packs for the properties I like. I have noticed a disturbing these buried in the contracts: in addition to paying your own legal fees and auction admin fee, most sellers are requiring payment of a further auctioneers fee and substantial payment towards the seller's legal fees (ranging from £2500-£7000). Is payment of these fees by the buyer a standard feature of buying at auction? Also, why are the claims for seller's legal costs so high? (On a property less than £120k top city law firms don't charge that much for a conveyance!!!). Any clues on what is going on here would be very much appreciated. Thanks all! Claire
Dan Southall posted a topic in General property discussionHello Everyone, I'm new to property and am in the process of trying to take in as much information as possible before taking the plunge and buying my first property. I've been stacking some deals, trying to include all the costs and not miss anything, with the intention of flipping. However one thing i have come across is some confusion over the selling costs. Question: Should I allow for the selling solicitor and estate agent fees in my initial capital needed to invest? Or can i use the money made from the sale of the property to pay the solicitor and estate agent. Some clarification from someone with experience would be fantastic. Thanks alot!
A thermostat in every room ? HMO advice requested
Tara Star posted a topic in HMO AdviceDear Hubbers HI, I'm a HMO newbie and grateful for your advice. I've got a 6 bed HMO , 2 storey in the works . All bills will be included. I've got myself a bit confused with the type of thermostat arrangement to set up. Should I just have a single thermostat in a communal area , one on each floor or one in each room ( super pricey to set up) I'd really appreciate advice on how to keep bills down whilst making sure everyone is comfortable . Having a thermostat in each room seems like the most comprehensive solution but its the most costly. Any advice on an easy -to -use brand which has worked for you and thermostat strategy would be gratefully received. I appreciate your time Hubbers!
mortgages Interest Rates rise to 0.5%
Guest posted a topic in General property discussionHi All, Thought I would share the news today that some of you may be aware of. Interest rates have increased for the first time in 10 years to a whopping, 0.5%, (sarcasm) increased by 0.25% My thought is what type of mortgage do you have? Most people's have one of two products. They either have a fixed-rate, x amount per month, or they have a variable rate, where the interest rate can move at the discretion of their lender. If you haven't changed your mortgage for more than five years, you are probably on a variable rate. This means your rate is susceptible to the increase. Whilst the increase isn't substantial, either way it means less money in your pocket than before. Always remember to check your current mortgage rates and switch when a better deal comes along, at the recommendation from your mortgage broker. Neil
Stu Le Fevre posted a topic in Tax AdviceQuick one, if you will. How confident would you be to use the cost of the following as a revenue expense, when offsetting against income on a BTL property? I'm a tad unsure. TOOLS; Cordless drills Screw drivers, wrenches, Stanley knives, tape measures, cartridge guns, etc. etc. Protective clothing; gloves, masks, knee pads etc. Basically, most of the common day-to-day DIY stuff you get from B&Q, Homebase, Screwfix etc that you would use to support your self-management tasks on your BTL property. Thank you! Stuart.
Charles D posted a topic in Refurbs & DevelopingHi All, i'm looking for a builder in the Gravesend / Kent area and have had some quotes and they have all come in far and between £11k - £21 and the timescales between 4-8 weeks. I know the main cost is due to Labour however this is a one bedroom flat and isn't a major refurb. The kitchen will be completely gutted out and new windows and Central heating is where the bulk of the cost will go. Can someone tell me as to what type of price I should be looking at for the following works. This will be my first light refurb I intend to live their for no more than 6 months but will rent out afterwards. I will be responsible for supplying the Kitchen, Paint & doors. The boiler will be supplied and fitted by the builder. I would appreciate your feedback as that would be great. Many Thanks Lounge Strip paper, fit 6 x down lights, plaster ceiling, fit new door. Prepare walls and ceiling and apply 2 coats of emulsion. Prepare woodwork and apply one undercoat and one coat of white gloss. You to supply emulsion, door, hinges and handle. Bathroom Replace one tile supplied by you, plaster ceiling, fit 6 x spot lights, remove tiled flooring and fit new ply floor and tile, fit new door and decorate. You to supply, door, handles and hinges and floor tiles. Hall Strip paper, plaster ceiling, fit new door to cupboard and decorate. If walls are not good enough to decorate I will have to price for the plastering of the walls once we know. You to supply door, hinges, handles and emulsion. Bedroom Strip paper, fit new 6-inch skirting, fit 5 x spot lights, remove beads to wardrobes, fit new handles, fit new door and decorate. I will have to price for the plastering of the walls once we know if they are good enough. You to supply, handles for wardrobes, door, hinges and handle. Kitchen Remove existing kitchen, enlarge windows, plaster kitchen, fit 2 x new PVC windows and new PVC back door, renew electrics and plumbing, fit new kitchen, fit new wall and floor tiles, decorate. You to supply, kitchen, wall and floor tiles and emulsion. Heating and hot water Fit new Combi boiler, fit new 3 x radiators and 1 x towel rail. Fit all required pipework and electrics.