Is there any money

yoloc

Is there any money to made out there for renovating properties, getting an old house/cottage and putting some work into it and selling on for a profit or is that industry dead untill we see the country back in some sort of growth. Just curious to know is there anyone out there doing this in these times

ted1

If you can buy and fix it ip at below market value then yes. If you can't then no.

Bluegrass1

yoloc wrote: »

Is there any money to made out there for renovating properties, getting an old house/cottage and putting some work into it and selling on for a profit or is that industry dead untill we see the country back in some sort of growth. Just curious to know is there anyone out there doing this in these times

there is no money in it. People buy run down buildings and underestimate the cost of renovating them. The result is that someone hoping to turn a profit is priced out of the initial purchase.
There is some potential in converting buildings such as office blocks to other uses. That is activity which needs a lot of working capital. Forget about DIY cottages.

The_Conductor

Do'er-Up'pers as people like to call them are a total non-runner in the current climate.

First off- there isn't a sufficient price differential between ramshackle hovels that need doing up and lovely little properties fully modernised with every possible convenience.

Secondly- good luck trying to finance it

Thirdly- prices are still falling in most areas. Its a limited bouyancy in the major urban areas that has temporarily stabilised prices over-all- but keep in mind- prices in Dublin fell over 20% more than prices in Portlaoise- and the current Dublin based stability is based on limited supply- something that doesn't apply over much of the midlands and elsewhere.

Some abandoned developments in major urban/suburban areas are being reopened and development is beginning to happen. This is limited in nature- and in direct competition with your do'er-up'per.......

When prices were frothy- there was good money to be made in doing up property- not anymore.

StillWaters

To go against the grain here. I would say yes. Look at the 'flipping' thread over on the Pin. Some people will make and have made very good money from buying in SCD 2 years ago, doing up and selling now.

However you have to have access to capital and most importantly you have to pick the location well, You have to gamble on which mini area is going to be the next SCD, and that is very hard without an historic property price register.

The_Conductor

StillWaters wrote: »

To go against the grain here. I would say yes. Look at the 'flipping' thread over on the Pin. Some people will make and have made very good money from buying in SCD 2 years ago, doing up and selling now.

However you have to have access to capital and most importantly you have to pick the location well, You have to gamble on which mini area is going to be the next SCD, and that is very hard without an historic property price register.

Yes- people have flipped on properties in South County Dublin in the past two years- however (and its a big however), they bought the properties as firesales, and in general didn't do them up at all- just sat on them (or in one case just off Baggott Street- bought it at the Allsops Auction- and walked out the door into DNG and put it on the market the same day. It took 3 months to sell on the open market- but they turned over a hundred grand for doing absolutely nothing.

South Dublin is not a typical example- the issue in South Dublin is lack of supply- particularly of family homes. We didn't build in this area during the boom (other than apartments)- so now we have a small but determined group of people chasing any family homes that do come onto the market.

The other thing is- even in this market- you will *not* get back any money you invest in property if you flip it- identical properties next door to one another- one ramshackle, the other in pristine turnkey condition- will often reach identical prices.

Its a pure gamble- and its been stacked in favour of the gambler purely because of the lack of supply- its a totally different proposition to buying somewhere, doing it up and flipping it.

the groutch

no money in flipping, but money to be made medium term imo by fixing properties like this and renting for 8-10 years before selling.

Ray Palmer

There is money in it but there is also risk in it. The current market would not be one a novice should start in.