Is it wise to invest in a troubled lot?

Discussion in 'Development' started by George79, Dec 20, 2015.

  1. George79

    George79 Member

    What I mean by this is a lot or land property that has seen issues with flooding or foundation shifts. There are many lots out there that seem to be easily rebuilt if you have the money to correct the issues, but is it worth it?
  2. Le Seb

    Le Seb Member

    I don't think anyone can give a generic advice on this as it depends on the property. That said I definitely would not get close unless I was myself an expert in diagnosing and fixing this issues - which I'm, clearly not.
    You could get yourself into a world of pain and financial miscalculations.
  3. KGeeson

    KGeeson Property Forum Staff Forum Partner

    I agree with Le Seb. If you have expertise in the specific problem area then it could be worth it, but if you haven't, it could be a money pit.
  4. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    Often the troubled properties are the biggest opportunities IF you know what you're looking at and know the cost to put them right... Most people will be put off so should get it for a discounted price and be able to build in a safety margin...

    Don't rule it out just because it has potential issues...
  5. kchiggs

    kchiggs Member

    Loads of ways to deal with flooding look at holland. Look at SUDS and flow through development. You need to build in a non traditional manner. As a lot of the knowledge on fluid dunamics has advanced in the last twenty years thanks to cheap graphics card and AI advances. So typical developer/builder knowledge is no longer relevant for this use case. Need to price as a knockdown and rebuild job though as too expensive to retrofit. 're foundation shifts don't know unless they are caused by flood damage in which case rebuild as flood-tolerant foundations. Note this is for rivers and sea flooding not surface water flooding which has a different geophysical effect and method.
  6. diyhelp

    diyhelp Active Member

    As with any investment you need to balance up the risk/reward ratio - personally for me there is too much risk with this type of investment. However, fortune does favour the brave :)
  7. nmb

    nmb Well-Known Member

    Anything is good value at the right price - are there any local authority grants for cleaning up/fixing troubled lots?
  8. kchiggs

    kchiggs Member

    Agree however it is possible in this instance to use technology to adjust the risk downward at the cost of less reward.
  9. nmb

    nmb Well-Known Member

    I presume insuring the site and buildings might also be a problem if it is prone to flooding?
  10. kchiggs

    kchiggs Member

    Well not in South Holland which is below sea level anyway. There are specialists for this kind of thing. You probably would not go to your usual rub off the mill provider.
  11. nmb

    nmb Well-Known Member

    I also think you would need to look on a longer term basis when investing in this type of property. No quick fixes!
  12. kchiggs

    kchiggs Member

    300 years will do for me
  13. Longterminvestor

    Longterminvestor Active Member

    Now that is what I call a long term investment - you expecting a big jump in life expectancy!
  14. kchiggs

    kchiggs Member

    Actually the research I've seen suggests those under 20 are likely to live 100 years average life expectancy (which is enough to allow a lot more technologies to start coming i ) remember it use to be 30. I believe 500 is considered the maximum attainable (although we already have computers that can read brain waves and a supercomputer that holds the same amount of memory as a human brain. There is actually work now on uploading a small nematode brain I to computer hardware. So at this rate 100 years is potentially enough for everyone to become robots which mucks up the figures.
  15. nmb

    nmb Well-Known Member

    Mucks up the human race never mind your figures lol Artificial Intelligence is coming on in leaps and bounds now and there are AI systems out there wihich can teach themselves - scary stuff!
  16. kchiggs

    kchiggs Member

    Self teaching systems have been around for ages used to be called genetic algorithms (algros writing algros) it's just become more widespread.
    Barring catastrophe I give humanity maybe another 1000 years after that probably no longer human.
  17. realdeals

    realdeals Active Member

    You are certainly getting into the Xmas spirit KChiggs lol End of the human race :(

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