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Renovating an Unmortgageable Property For Profit?

Hello all, We have an unrepaired PRC property that is considered to be of defective construction and therefore unmortgageable. The property is in need of modernisation througout and over the past year we've stripped it down to an empty shell, with the addition of plastering and lining paper in a number of rooms. We have also purchased a new kitchen that is yet to be fitted. We estimate that an additional £6-7,000 will be required on top of the £3,000 already invested to bring the property to a good standard. This would include: New kitchen and bathroom fit Painting & decorating all rooms New front and rear lawns (from seed) Patio Fitting new banisters, internal doors, and skirting boards My question is: how likely are we to see a return on investment whether that be in terms of profit or the speed and ease with which we might make a sale. For reference, a decently modernised unrepaired PRC property sold for £125,000 in October 2016 in our area. Our property is a 3 bed semi with of 220m2 of gardens.

Asked on Jun 28 2017, Selling in Swindon | Report content

Answers (4)

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  • Impossible to answer without knowing what you paid for it.

    Answered on Jun 29 2017, Report content
  • Hi quip thank you for having a read, sorry I should have added that major detail. The house was purchased for £12,000 so clearly its profitable. My question is how likely is the additional £6-7,000 required to bring it up to a good standard see a return on investment, this could be monitarily or in terms of a faster sale. Or given the slow down in the buy to let market (the main buyers of these types of properties) does it make better sense to sell it in its current state of repair?

    Answered on Jun 30 2017, Report content
  • You have to consider if the money you spend (and the value of your time and effort etc.) represents a saving on what the buyer would need to spend. It probably is not worth it if it were sold for owner-occupation, the buyer will have their own ideas and will not want to pay for things that will need to be changed. For a BtL investor what matters is if the work done will make it ready for letting without delay.

    Answered on Jul 4 2017, Report content
  • How much do you want for this property as a shell? I am a cash buyer

    Answered on Jul 30 2017, Report content

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