Aspiring developer

[jamo]

Hi,
Looks like I have missed the property boom but would still like to consider starting out as a developer. For me it isn't about making wads of cash. It is about a better way of life. I would be doing something I really enjoy and not have a 3h round trip to work doing something that is okay in a place that is awful.
I currently take home 15k per year and would be happy with that to start and was wondering if that sort of profit was still attainable on a couple of small properties a year?
Also if I ever went full time with it and gave up my job would I be able to roll over the mortgage onto the next property or would my lender not be happy as I no longer had full time employment. Are there other sources of funding out there for when you are a full time developer?
Sorry if I sound ignorant but I want to research this properly in order to make the right decision.
Any help would be greatly appreciated.
Thanks.
J.

[brian]

I think this is the key:

"I want to research this properly"

Property markets are really differentiated at the local level, so you really need to understand the local property conditions and work with that.

While you say you're not interested in making "wads of cash", you will remain subject to what are at present very adverse conditions across the UK property market, which means you will have to take clear to write a business plan outlining how this business will succeed financially, as well as the above regarding local conditions.

I guess you could say there is always income to be made, but at present, the property market is not very inviting.

[jamo]

Thanks for the reply. I'll carry on with the research and look more into the local market.
Cheers, J.

[MarkSev]

Jamo, you've picked a really difficult time as not only is there little demand for property but also little money to fund and particularly difficult for first timers. Don't know your personal financial position but for sure you'll need a largish deposit (at least 25%) and the refurb costs likely - the days where full fundning available are GONE!
Having mentioned the downside of the market, there are always opportunities with 'distressed sellers' or small developers who might want to offload a project.

My suggestion (and how I started) is to do something 'part time' if you're convinced it'll be the right way forward. You need to ensure you allow for having the property on your hands longer than anticipated given the current market.

Can I be bold and suggest looking for a job more local with no responsibilty (even Tescos) which might give you an income and leave you free to work on your project in time after work.

Best of luck

[JollysH1]

Yes 15K is attainable on 2 properties, infact you should be aiming higher really! maybe 20-30K per property with a 6 month turn around on each, however I am speaking as someone that does all the work from foundation to roof, Groundworks, drainage, brickwork/masonry, full rewire, and replumb, central heating installation, 1st 2nd and final fix joinery, glazing, gas work, roofing and tiling, plastering, decorationg, full kitchen and bathroom installation and internal tiling! if you are planning to have contractors do any of these things, then you are going to cut your proffit a bit short on the finished property in the current climate!

Obviously I don't know about your current financial status but 15K strikes me as a little low even to buy a first time house on a mortgage! I'm assuming you have financial backing or somthing put aside.

If this is the case and you can weather the current credit problems property will always be a lucrative business, I would recommend picking up items for around 80K spending 20K on them to achieve a property capable of commanding 129K keeping under the tax threshold they seem to sell better!

BTW make sure whatever you buy has parking! worth its weight in gold!!!

JollysH1

PS: Oh and make sure the council are ok with any proposed alterations.

[Slow Rambler]

Originally Posted by jamo

Hi,
...For me it isn't about making wads of cash. It is about a better way of life...
J.

I can fully understand that. But there is a danger that if you go into it without costing for a good profit, and without working to that end, it becomes very easy to drift carelessly below breakeven and into a loss. And once that happens, the project becomes a depressing chore rather than a pleasure.

[kims88]

yeah, research is the word... it's easy to jump in without doing sufficient homework... only fools rush in may be a cliche but it really holds water in property development