Developing a garden is one way you can add value to your property.
In this episode of Property Sourcing Profits Podcast, David lets you in on everything you need to know about in-filling or garden development. What David presents today is a real case study (with real numbers) from one of his mentee. He hopes that you learn from this perfect example and learn how you can add value to your property by exploring the benefits of building a garden. Discover also the things you should consider or...
Developing a garden is one way you can add value to your property.
In this episode of Property Sourcing Profits Podcast, David lets you in on everything you need to know about in-filling or garden development. What David presents today is a real case study (with real numbers) from one of his mentee. He hopes that you learn from this perfect example and learn how you can add value to your property by exploring the benefits of building a garden. Discover also the things you should consider or look at before you decide on doing it so make sure to tune in.
KEY TAKEAWAYS
For example, how do you know that you have an in-filling/garden development opportunity right in front of you?
The house as is on the market for £350,000. It’s a 3-bed, 2-bath family home, 2 receptions, significant detach building. It’s a bungalow.
And the vendor is willing to consider the range of £300,000 - £350,000 because according to the state agent the bungalow needs updating significantly.
What’s even cooler is the garden is big enough to separate off the rear part of the garden and most of the garden to build a new house on it.
It will cost £150,000 to build the new house. £200,000 will cover the building plot and the potential profit.
As a deal packager, after uplifting the value, you can get a really massive fee.
Things to Consider Before Developing the Garden
Talk to your local highway authority/local council. Are there going to be issues with accessing public highways from the garden?
Check if the levels of the ground are sensible.
How big is the house for the garden? 85 square meters is what you need.
The cost to build it. It will depend on the specification and where you are situated in the country.
BEST MOMENTS
“When you can find an in-filling opportunity – a garden development site opportunity, then you’re certainly adding value for your investor and your investor needs to know about it.”
“A deal packager doesn’t have to know the numbers inside out. A deal packager has to know the numbers sufficiently to prove to the investor that there’s an opportunity here.”
“It’s not risk-free for the investor… which is why I say that you shouldn’t go to a newbie. You’re ought to go to someone who’s experienced, seasoned, and knows what they’re doing.”
VALUABLE RESOURCES
Progressive Property Facebook Community
ABOUT THE HOST
David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004.
In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained.
The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours.
CONTACT METHOD
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