New Build

FreeD

Private Member
Anyone ever bought a plot, built a new build and sold on?

I've got the opportunity to do it...I won't be doing the building work just project managing.

Much profit in it?
 

FreeD

Private Member
I guess...if that's what its called, investor wants return, I will source plot, organise architect, planing consultant, plans etc project manage build...ideally 1 contractor sell...I take profit after investor gets their cut.
 

flynnyman

Well-Known Member
I guess...if that's what its called, investor wants return, I will source plot, organise architect, planing consultant, plans etc project manage build...ideally 1 contractor sell...I take profit after investor gets their cut.
Might be easier to find land with planning, but will cost more or look at demolishing something. Unless you have a plot already in mind your gonna find it difficult might be easier to convert a bigger house into flats.
 

malc

TPF Special Forces
built 17 properties housing and bungalows. you will not be able to build at the price of a big time developer, you will need to produce a better quality property.

the first thing to check is the quality of the plot, do a soil test you hope to hit ballast or ironstone at 1 metre deep. if the plot needs to be pile driven then walk away.

your first property will be slow as it is a learning curve. when you are up and running a build should take about 10 weeks.
it is easy build in a boom time and a nightmare in a recession. make sure you have all your finance in place before you start.

we stopped building and just bought and sold building land, no work, just profit, let them build want they want.

profits can vary so much. if it does not add up on paper it will never add up in the build. there is always something usually the services. my pal has just had a quote to connect the electric ,5k ,he phoned up to ask if there was a mistake ? they came out and rechecked and said oh yes, we were 500 pound light so they upped their quote.

you can purchase a run down 3 bed semi in Epping for 600k, spend 100k on it and it will sell for 900k. turn one over per year and the profit is 200k.
 
Last edited:

FreeD

Private Member
built 17 properties housing and bungalows. you will not be able to build at the price of a big time developer, you will need to produce a better quality property.

the first thing to check is the quality of the plot, do a soil test you hope to hit ballast or ironstone at 1 metre deep. if the plot needs to be pile driven then walk away.

your first property will be slow as it is a learning curve. when you are up and running a build should take about 10 weeks.
it is easy build in a boom time and a nightmare in a recession. make sure you have all your finance in place before you start.

we stopped building and just bought and sold building land, no work, just profit, let them build want they want.

profits can vary so much. if it does not add up on paper it will never add up in the build. there is always something usually the services. my pal has just had a quote to connect the electric ,5k ,he phoned up to ask if there was a mistake ? they came out and rechecked and said oh yes, we were 500 pound light so they upped their quote.

you can purchase a run down 3 bed semi in Epping for 600k, spend 100k on it and it will sell for 900k. turn one over per year and the profit is 200k.

Thanks...thats good advice malc...so are you saying their is more profit in renovation? I've completed one development, my own place and it went well. Never done a new build...I assumed there would be more money in it...as it's straight forward...builder works to plans on a quoted price. I understand what you say about services, I had the same on the first one I did...seems to be a gamble as to how much you will pay...and no easy way to find out before hand. Hadn't thought of a soil test.
 

flynnyman

Well-Known Member
Thanks...thats good advice malc...so are you saying their is more profit in renovation? I've completed one development, my own place and it went well. Never done a new build...I assumed there would be more money in it...as it's straight forward...builder works to plans on a quoted price. I understand what you say about services, I had the same on the first one I did...seems to be a gamble as to how much you will pay...and no easy way to find out before hand. Hadn't thought of a soil test.
There Is more money but that's usually because it's part of your own land your building on.
 

malc

TPF Special Forces
Thanks...thats good advice malc...so are you saying their is more profit in renovation? I've completed one development, my own place and it went well. Never done a new build...I assumed there would be more money in it...as it's straight forward...builder works to plans on a quoted price. I understand what you say about services, I had the same on the first one I did...seems to be a gamble as to how much you will pay...and no easy way to find out before hand. Hadn't thought of a soil test.

from our point of view as plasterers, you can spend a third of the build cost under ground, it cost a good proportion of the build cost to get the shell up. a bricklayer or groundworker will be quicker at the early stage. the largest expensive is brickwork and plumber. other trades are ok. for a bog standard build.

a big problem is tax, one of my pals has just built 24 houses in a nice area of Colchester, they sold like hot cakes, after paying all debts he made 1.2 million for a years work. he received a tax bill for 750 k leaving him with 500k after doing all the work, agro, and finance.
one day he had to send 10 bricklayers home because the forklift driver took a day off. it does your head in.

i find that there is more that we can do ourselves in a renovation then a new build. but you have to know your own area .
i would keep a bank account solely for the build then you know the true cost.
 

FreeD

Private Member
Going to try and start small...interested in pricing up buying a plot, timber frame build and sell...not looking for massive profits initially, just need to get my head around it all...will definitely get a planning consultant this time, wish I had on the first one.
 

FreeD

Private Member
from our point of view as plasterers, you can spend a third of the build cost under ground, it cost a good proportion of the build cost to get the shell up. a bricklayer or groundworker will be quicker at the early stage. the largest expensive is brickwork and plumber. other trades are ok. for a bog standard build.

a big problem is tax, one of my pals has just built 24 houses in a nice area of Colchester, they sold like hot cakes, after paying all debts he made 1.2 million for a years work. he received a tax bill for 750 k leaving him with 500k after doing all the work, agro, and finance.
one day he had to send 10 bricklayers home because the forklift driver took a day off. it does your head in.

i find that there is more that we can do ourselves in a renovation then a new build. but you have to know your own area .
i would keep a bank account solely for the build then you know the true cost.

Really don't want to be doing any of the work, possibly the plastering....what about timber frame Malc do you rate it?
 
My friends are doing this at the moment in fact the area we live in is pretty much self builds everywhere :D
 

essexandy

The Lake Governor
Just about every successful small scale builder I've known has been very hands on and just about every one that has just wanted to 'manage' has failed along the way.
Your invester is non productive but wants a profit, you want to be non productive but make a profit and the builder you employ will want to make a profit. To many grabbing hands for a one off to support IMHO.
 
I think the point of self building is not to make money but to build a house that you cannot buy anywhere else and essentially money is no major object. ie you build exactly how you want it and plan on staying there for a long time... it might eventually make you back your money but if not you dont care because it is what you wanted :D
 

malc

TPF Special Forces
Really don't want to be doing any of the work, possibly the plastering....what about timber frame Malc do you rate it?

the timber house kits are good as they give you a costing from oversite up to roof.
 

scottie5

Private Member
My development of 3 bungalows went tits up i ended up completing 2.
and then just sold the last plot on, ended up making more from selling the last plot of land then for nearly killing myself 7 days a week for over a year building the other 2 units.
 
D

Deleted member 23452

Guest
It's a very long winded process in terms of what you need to know/do before you start. There is a wealth of information available, more success stories than nightmares, but that's because people are more inclined to publicise how well they've done rather than how badly the fcuked up. Read as many of both as possible, along with all the 'technical' info you can find.

I would say that it'll take you the best part of six months of research and learning before you should even consider it.

Aside from that I would point out the two people/organisations that make the most profit from new builds. They are the people selling the land with outline planning, and the people lending the money to finance it.

If you've done your homework, pick the right properties in the right areas, and have the odd good break there is far more to be made from refurbs and/or buying-extending-selling. There is also good money (with more risk) from buying detached properties, knocking them down and building higher value houses on the site, but that's partly due to the tax laws involved, VAT rates for example.

If/when you make money it's a reasonable return. If/when it goes wrong you generally lose everything.

The property market is like the gold rush in America. The odd prospector made a chunk of money, but even the best 'strike' didn't come close to the profits for the people selling the shovels.

Project management is neither as easy, nor as profitable as it first seems. I spent five years working as a project manager for a huge Swedish company. Projects I looked after ranged from half a million to twelve million. I gained useful knowledge and experience, mostly enjoyed it, then left and returned to the tools and a small business as a builder. I make more money now, which is the only (main) reason anyone works.

My advice for anyone in the building game would be, make a successful business out of what you're doing now. You need to be able to do that before you think about moving on/up.
 
Top