£82,000 Profit From Renovating A Property
It’s still possible to make big money in the UK property market
I hear many people say that it’s no longer possible to buy a property to renovate and sell for a profit. They say that property prices are too high and that there’s not enough profit margin.
But while many say it can’t be done, others are out there doing it.
The TV program Homes Under the Hammer featured a couple, Bev and Nick, that bought a property in Cannock, Staffordshire at auction.
The guide price for the auction was £50,000, although the couple ended up paying £151,000 for the property. Guide prices for property auctions in the UK are deliberately set very low in order to attract more potential buyers. It was never going to sell for £50,000.
Bev grew up in the area so knew that this would be a good buy. It’s not often that similar properties come up for auction.
The couple planned to spend £15,000 on renovations but ended up spending £17,000. That’s pretty close to their budget.
That means that the price of the property and renovations came to a total of £168,000.
Once the renovations were finished, a local estate agent valued the property at £225,000-£250,000. That would give a profit of £57,000-£82,000. Not bad for a few months’ work.
There will be legal and other expenses that need to be deducted from that. As property prices are currently rising at over 10% a year in the UK, the profit could end up being even higher if they hang on to the property for a while.
This just goes to show how money can be made in the UK property market if you know what to look for.
The key is to buy the right property at the right price.
If you’re buying at auction, set a price limit. Don’t get carried away and overpay.
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