The property sale has completed and the money’s in the bank!!
Now you may remember, this was a property I bought after auction (i.e. it was a property which did not sell in the auction room and was still available to buy at reserve post auction).
For me, the decision to buy was a quick one – the fact was; the property was located less than 10 minutes from where I live and didn’t really need much work doing to it. I knew it was never going to set the world alight in terms of what could be done with it, nor the money which would be made from it. But, you know, I was happy. For me – it gave me a little project to do, which was local and wouldn’t take up a lot of time or money.
The property renovation took exactly 18 days – it was a bit longer than originally anticipated (I had hoped to complete it in 14 days). But, having found out the property needed a complete rewire and the decision to strip the entire property of wallpaper meant I created delays which could never have been built into the original schedule (which was already tight from the outset).
Anyway, I think we did a pretty good job on such a tight budget and time frame – the whole series is on my vlog here: What Sam Bought Today: Diary of a Property Renovation
But, you can also see the before and after photos here:
Store to Study:
So, now I know the key thing you want to know is the numbers – so without further ado, here they are:
Property Renovation Sums:
Property Purchase price: £147,000
Purchase costs (inc. legal fees & stamp duty): £2697
Finance costs (inc. arrangement fee, security fee, surveyor & loan interest): £3965.32
Materials & labour (inc. new kitchen, full rewire, carpets): £7836.71
Decor and staging: £70.50
Etc (inc. utility bills, petrol): £121.35
Selling costs (including legal fees and estate agency fees) : £1179.60
Total costs (excl. property purchase): £15,870.48
The property was sold for £179.995, so after costs and the purchase price the net profit is: £17,124.52
I plan to post my top 10 lessons from this project next, but the key points worth noting at this stage are:
- Look how little the actual renovation costs were.
- As a proportion of the total costs look how much the finance cost: 25%
- Note how much all the other incidentals add up to – the renovation costs are not even half of the total costs
- Remember I have used a double contingency: firstly the full re-wire and secondly the £10k price reduction
- Note I sold this property myself with Hatched which kept the selling costs down
As a project, this was as easy as they come. The property didn’t have any major renovation surprises. It was a fun, easy and simple project which I loved doing. It was great to be able to experiment with selling the house with an online estate agent vs. a high street estate agent, and I have loved sharing the ups-and-downs with you all as we have gone along.
Making money from property is possible – however it is no longer the route to riches and overnight success story which so many of us were brought up on in the days of Property Ladder. However, what this real life property renovation does show you, is that with a bit of hard work, some time and some persistence money can be made from buying, renovating and selling property – even in a difficult market!
*NB. The figures altered in my favour from my original post as the bank overstated the redemption figure for the loan which has now been settled.