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Kamran wants to know if this £400,000 Fixer Upper house is good value.
Here is the property in question:
https://www.rightmove.co.uk/properties/141434459
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Here’s our message from Kamran:
I am one of your subscribers. First, thanks for such interesting videos. I am learning massively.
My Situation:
I am FTB. I have no previous experience, but I have seen so many YouTube videos that I can now describe most of the processes in homebuilding. My wife and I are both engineers. We live in the Reading area.
Our Plan:
We will renovate the house in two phases. 1st phase is the renovation of the current house minus the kitchen. 2nd phase is a new rear extension with a new kitchen diner.
In the phase 1, we plan to:
• Start with electrics, have the electrical wiring replaced and bury inside walls
• Replace the central heating system of the whole house
• Modernize the upstairs bathroom and WC
• Repair the roof for fallen hip/bricks and replace facia, soffit and guttering (you will see traces of water leak because of fascia/soffit in a bedroom)
• Replace all doors and windows except kitchen and dinner (why: because we will tackle them in phase 2 – new extension)
• Tidying old kitchen to use it temporarily as we will have 1 year wait between this and 2nd phase and need to use this old kitchen till then
• Do carpets and flooring where needed.
We will do the garden, patio, and driveway ourselves, so we are not considering them above.
In phase 2, we will have a rear extension that will join the old kitchen space, too. But please ignore it for now. The plans and figures here are just for Phase 1 of execution.
Seeking support from you:
1. Do you see any red flags in the images I didn’t cover in my above plan?
2. Our estimate for phase 1 renovation is 60K (best case) -100K (worst case). The midpoint guidance is 80K. Do you see any issues with our estimates?
3. I value your advice and am happy to gain any (paid-for or complimentary) service you provide.
Overall, I am very concerned about whether I missed anything important (the surveys will happen, but I’m not sure if there is anything obvious that my inexperienced eyes haven’t spotted) and whether my cost estimate is real.
Buying a Fixer-Upper House: Key Considerations
Purchasing a fixer upper house can be an exciting and rewarding investment. It offers the potential to customize your dream home or make a profit through renovation. However, it requires careful consideration and planning.
1. Assess Your Budget: Before buying, establish a realistic budget. Factor in the purchase price, renovation costs, and a contingency fund for unexpected expenses. Obtain quotes from contractors to ensure your estimates are accurate.
2. Evaluate the Location: Location is crucial. A fixer upper in a desirable neighborhood can yield significant returns. Research local property values and trends to understand the potential resale value post-renovation.
3. Inspect Thoroughly: Hire a professional inspector to assess the property’s condition. Pay close attention to structural issues, plumbing, electrical systems, and roofing. Major repairs can be costly and time-consuming.
4. Understand the Scope of Work: Determine the extent of renovations required. Cosmetic updates like painting and flooring are less daunting than major structural repairs. Create a renovation plan and timeline to stay organized.
5. Consider Financing Options: Explore financing options such as renovation mortgages, which combine the purchase price and renovation costs into one loan. This can simplify the funding process.
6. Plan for Resale: If your goal is to sell for profit, focus on improvements that increase market value. Kitchens, bathrooms, and curb appeal typically offer the highest returns.
Buying a fixer upper can be a fantastic opportunity with careful planning and execution, leading to a beautifully customized home or a profitable investment.
