Thinking of investing in this property

[Vaccaro]

hi everyone 

 

there is a possible investment opportunity near me, i'm going to view it next week so i dont know the full extent to what needs to happen but i as wondering if anyone could give me a rough estimate to how much this could possible cost.

 

Its a 4 story town house and there is planning to extend all 4 stories and the attic

 

attached are some of the drawings

 

 

[AliMcLeod]

The initial cost, and the cost to extend, will vary widely depending on which part of the country you live.

 

There are some very basic questions your need to get answers to here: Is there a guide price for the property? What do similar sized properties (pre and post extension) sell for? Have you sounded out some builders on what it might cost to extend? You can do a very basic potential profit calc based on that.

 

But perhaps the most basic question of all - if someone has gone to the trouble of getting planning permission, but has not gone ahead with the work themselves, is there actually a profit to be had?

 

Edited February 27, 2019 by AliMcLeod

[ProDave]

I am guessing the planning is to turn it into 5 flats?  I can't otherwise think of why you would want to extend what is already a large house

 

So work out from the floor plans if they would be 1 or 2 bed flats, look up what they might sell for, then see if there is enough difference from the purchase price to actually pay for the work and make a profit.

 

Don't forget little extras like getting the DNO to install 4 new supplies as they don't do shared supples any more.

 

[Vaccaro]

Yeah it dose seems to be abit of a to good to be true scenario because the property isn’t all that expense. But I have worked out the financial and it’s seems to be very profitable but yeah I can’t figure out why they didn’t go ahead 

[Moonshine]

9 minutes ago, Vaccaro said:

I can’t figure out why they didn’t go ahead 

 

its a worthwhile question to ask, but how about they aren't in a position to develop it themselves, either they can't get funding or they don't want the PITA / time investment of the development.

 

They could have got the planning permission, and sell on with a bit of the profit from the mark up from the planning permission and move on.