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.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.
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.
There Is more money but that's usually because it's part of your own land your building on.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.
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.
Really don't want to be doing any of the work, possibly the plastering....what about timber frame Malc do you rate it?