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I bought a UK property yesterday and think I can flip it quickly.

Discussion in 'Buying Overseas Property' started by Investy, Oct 21, 2008.

  1. Investy

    Investy Senior Member

    I cant say where as I intend to repeat the excercise for as long as I can, buying 1 at a time. If possible Id like to do it 10 times in the comming 2 years but it depends on the market.

    I bought cash a new build flat about to be finished. Its in the South East in a town where they were selling for £170k, but I got for £90k cash. The developer sells them for £140k to FTBs wanting a mortgage. They only sell for ow prices if you are 100% cash and promise to complete within 4 weeks.

    I have checked with 5 EAs and the true price I can resell for to a FTB or investor requiring a mortgage is £115k and they will value up at this. Others who bought for £170k (inc repos) are trying to resell for much more than mine.

    After costs I stand to make £21000 and think this can be done within 2 or 3 months from now. I take the keys next month.

    I suspect interest rates will be far lower going forward and that lenders will in the main have to pass on a good deal of the reductions, which means the market can gradually bottom out. Again this is the S East in a booming area, so not to be compared with say Nottingham with its masses of new build.

    PLAN B
    It will let for £700 pm, and they are in very high demand as there is not much new build in the area and its right next to the station.
     
  2. Investy

    Investy Senior Member

    Iain I plan to repeat this as long as I can. Giving others the details would mean I would be less likely to be able to pull it off as I would have buyer competition so the developers would have less reason to discount so deeply.

    There must be developers all over the country you could target. I think its important to target developments which dont have too much local competition. You want to ensure you really are getting a well below market value and check the price any repos on the development are going for before you put in your offer as you need to ensure you buy well below repo price.

    I spent a few weeks on the phone (average 30 minutes per day) before I found this development which was recommended to me by a good letting agent.
     
  3. Lysos

    Lysos New Member

    Apparently, on certain developments Barrats are offering 45% off if you buy 4 flats or more. However when you see city/town centre apartment repossessions going at auction for half their original price maybe it's not such a god deal.
     
  4. Investy

    Investy Senior Member

    Lycos, thats the key, make sure you buy well below the repo prices. Even if you cant, it is still possible for a cash buyer happy to use developers lawyers to get a hefty discount to then sell onto the non cash ordinary buyers.
     
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