My first house - empty shell. Good/Bad idea?
Discussion
The immediate problem I'd think you would have is obtaining a mortgage. Unfortunately lenders are not renowned for their "Blue sky thinking". However, if you can- Go for it! I'd love to have a really big house project to crack on with.
Edited by carreauchompeur on Thursday 4th February 22:17
Purchase price/method aside, the biggest question imo is how much it's going to cost to do up?
Will you find a myriad of expensive issues post purchase? Is there something badly wrong structurally which will murder your renovation budget for example. If you've got a builder mate who knows his business I would try and arrange a pre-auction viewing and get him to have a good look around.
But if you are satisfied with the structural condition then go for it I reckon. Will make sense if you end up living there and potentially you have a good size gaff for little cash which you will do well on in years to come. Good luck
Will you find a myriad of expensive issues post purchase? Is there something badly wrong structurally which will murder your renovation budget for example. If you've got a builder mate who knows his business I would try and arrange a pre-auction viewing and get him to have a good look around.
But if you are satisfied with the structural condition then go for it I reckon. Will make sense if you end up living there and potentially you have a good size gaff for little cash which you will do well on in years to come. Good luck
Sounds a good idea in principle, but if you end up "paying" these friends, even at mates rates, are you actually going to save THAT much, taking into account all your time....the aggro etc.?
If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
The fact you are even thinking about this is to your credit........
If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
The fact you are even thinking about this is to your credit........
Matt Evans said:
I'm pretty sure that you will be eligible to pay Council tax from the moment that the deeds are in your name.
I might be wrong.
Usually exempt for 6 or 12 months where renovation works are deemed major. 50% discount thereafter if not occupied.I might be wrong.
Edited by Matt Evans on Friday 5th February 11:35
All you need to buy at action is the deposit which you pay as the hammer falls. A quick completion will be required however, usually a month. Get hold of a copy of the auction catalogue to see their specific conditions of sale.
Get a viewing pronto, with a suitably qualified person (you mentioned a friend in the trade).
Do your sums. Work out a realistic budget. If it stacks up get a structural survey done prior to bidding.
Set a maximum bid you are prepared to pay - stick to it, do not get sucked into auction fever.
Good luck, sounds like an exciting project.
Re. finance if possible get an unsecured loan £25k will cost you about £500pcm over 5 years. Once the place is habitable the mortgage it.
Sounds good to me and would love to do something similar in the future, but be aware that it can cost a lot. My uncle done one similar and he wished he had just pulled the house down and started from scratch.
If buying from an auction im sure you need to get the money first. its like winning something on ebay then applying for a loan and not getting it, then having to say to the seller that you cant afford it.
If buying from an auction im sure you need to get the money first. its like winning something on ebay then applying for a loan and not getting it, then having to say to the seller that you cant afford it.
Will your parents secure the mortgage against their own house? cheapest way of doing it if your relationships good.
If you trust your builder mate, get him to give the place a good look, and use him to project manage the works. Don't assume because you have all the pieces of the puzzle ie plumber, spark, chippy, builder that they'll all magically find their own order, many self-managed builds funk up this way. Especially when using a team of non-english speaking labourers to do the build, who typically tell the client that "room need electrik" when it's holding them up and then expect "electrik man" to drop everything and come running because "he hold job up", then find "room needed electrik" several days ago and starts smashing new plasterboard to install wiring, big row, etc etc etc.
If you trust your builder mate, get him to give the place a good look, and use him to project manage the works. Don't assume because you have all the pieces of the puzzle ie plumber, spark, chippy, builder that they'll all magically find their own order, many self-managed builds funk up this way. Especially when using a team of non-english speaking labourers to do the build, who typically tell the client that "room need electrik" when it's holding them up and then expect "electrik man" to drop everything and come running because "he hold job up", then find "room needed electrik" several days ago and starts smashing new plasterboard to install wiring, big row, etc etc etc.
A couple of points:-
Quite a few auction properties go over the guide price, so be aware you might need to find a bit extra.
How much is the renovation going to cost ?
How much will it sell for at the end ??
If a developer owns it and wants rid, then I would want to do my sums as he is a developer and doesn`t think he can make any money by renovating it.
Sorry to be a bit negative just don`t want to see you get stung on your first property.
Quite a few auction properties go over the guide price, so be aware you might need to find a bit extra.
How much is the renovation going to cost ?
How much will it sell for at the end ??
If a developer owns it and wants rid, then I would want to do my sums as he is a developer and doesn`t think he can make any money by renovating it.
Sorry to be a bit negative just don`t want to see you get stung on your first property.
hairyben said:
Will your parents secure the mortgage against their own house? cheapest way of doing it if your relationships good.
If you trust your builder mate, get him to give the place a good look, and use him to project manage the works. Don't assume because you have all the pieces of the puzzle ie plumber, spark, chippy, builder that they'll all magically find their own order, many self-managed builds funk up this way. Especially when using a team of non-english speaking labourers to do the build, who typically tell the client that "room need electrik" when it's holding them up and then expect "electrik man" to drop everything and come running because "he hold job up", then find "room needed electrik" several days ago and starts smashing new plasterboard to install wiring, big row, etc etc etc.
I started with the idea that i want to go all out on my own and go for it, but in this climate im finding it much harder then i thought and using my mums home to get a better rate is becoming all the more like a good idea. Im not hugely worried as a 25-28k loan is not massive compared to some mortgages people have. If you trust your builder mate, get him to give the place a good look, and use him to project manage the works. Don't assume because you have all the pieces of the puzzle ie plumber, spark, chippy, builder that they'll all magically find their own order, many self-managed builds funk up this way. Especially when using a team of non-english speaking labourers to do the build, who typically tell the client that "room need electrik" when it's holding them up and then expect "electrik man" to drop everything and come running because "he hold job up", then find "room needed electrik" several days ago and starts smashing new plasterboard to install wiring, big row, etc etc etc.
Edited by anonymous-user on Sunday 9th May 20:23
Wacky Racer said:
Sounds a good idea in principle, but if you end up "paying" these friends, even at mates rates, are you actually going to save THAT much, taking into account all your time....the aggro etc.?
If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
And bear in mind that a £35k house won't be worth that much more no matter how much work you put in.If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
I've recently renovated my place, it was back to the brick wall(the roof and windows were fine), rewired whole of house, plaster and skim, new toilet, bathroom and tiling, new internal doors, plug sockets, switch gear, lighting, central heating, carpets etc.
Its a lot of work, you will make some very good contacts, trades people, suppliers etc. Don't be afraid to think outside the box e.g. door handles I sourced direct from the manufacturer ending up paying £100 rather than the £400!
Keep on top of things and don't refrain from confrontation, its bound to happen, other wise people will try and take you for a mug. Happened with my general builder, ended up kicking him out the house, he insisted my wooden double glazing was faultly and I then caught him trying to damage it!
You will come across numerous problems, take them in your stride - no problem is that big of a deal - unless its susidence.
Stick to a budget and control your costs, if anything negotiate labour costs with the trades people and source your own material, more hassle but less chances of being ripped off.
Its a lot of work, you will make some very good contacts, trades people, suppliers etc. Don't be afraid to think outside the box e.g. door handles I sourced direct from the manufacturer ending up paying £100 rather than the £400!
Keep on top of things and don't refrain from confrontation, its bound to happen, other wise people will try and take you for a mug. Happened with my general builder, ended up kicking him out the house, he insisted my wooden double glazing was faultly and I then caught him trying to damage it!
You will come across numerous problems, take them in your stride - no problem is that big of a deal - unless its susidence.
Stick to a budget and control your costs, if anything negotiate labour costs with the trades people and source your own material, more hassle but less chances of being ripped off.
Bill said:
Wacky Racer said:
Sounds a good idea in principle, but if you end up "paying" these friends, even at mates rates, are you actually going to save THAT much, taking into account all your time....the aggro etc.?
If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
And bear in mind that a £35k house won't be worth that much more no matter how much work you put in.If the answer is yes, give it very serious consideration and go for it, bearing in mind it might take 4/5 years working part time here and there...
For comparrison the house next to it sold for 160k when completed (2 bed secure gated access town centre location)
My concern is there is no internal walls so its back to basics!
Edited by anonymous-user on Friday 5th February 16:34
yammyfan said:
Its an empty shell with planning permission. I would like to think it would be a worth a tad more then 35k once its complete.
For comparrison the house next to it sold for 160k when completed (2 bed secure gated access town centre location)
My concern is there is no internal walls so its back to basics!
For comparrison the house next to it sold for 160k when completed (2 bed secure gated access town centre location)
My concern is there is no internal walls so its back to basics!
In which case I wouldn't be surprised to see it go for substantially more than £35k at auction. ETA Good for you, but you need to make sure you've done your sums.
Edited by Bill on Friday 5th February 16:48
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