Shall I buy or build a HMO?

[Omar199]

Is it better as new investor for me to buy a ready-made HMO or shall I do it myself? Thanks

 

[Luke Masters]

@Omar199 The answer depends purely on your availability to give time to the property/project. You will certainly learn more from creating the HMO yourself, however if you don't have the adequate time to manage the conversion it can become costly on time and money.

I would suggest buying a ready made one on your first investment, seeing what was done to convert it and build a team around you to create the second one yourself.

 

[Judith Beilby]

I personally think it is a missed opportunity not to convert a HMO yourself. If you invest in the adequate research for the area, the market and the right property then with a good builder a conversion should not be too difficult. Essentially turning downstairs reception rooms into bedrooms and adding the right balance of en-suites or shared bathrooms for your target market.
Your profit margins will be significantly greater and your experience will grow through the process.
The right builder is a key ingredient so choose diligently and my advice is to lock down costs through a structured fixed price contract.
There is plenty of free advice on line and through networking events. Go for it!!

 

[Michelle Barringer]

It depends on your budget and experience and available time - developing your own HMO is a big undertaking even with a good builder and manager - but i likely to make you more long term profit. Whereas buying a ready developed HMO can create an instant yield for you and be managed by an agent making it almost hands off.

 

[joeepifanio1302]

it depends on your budget and my suggestion would do yourself.

 

[Gina Lancaster]

If you need any advice on funding then please contact us. [email protected] or 07841 016596

 

[Longterminvestor]

There is more margin developing an HMO yourself but do you have experience in this field?