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Homes Under The Hammer


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HOLA441

Saw this programme on the BBC yesterday and I am still failing to grasp the concept.

Basically a builder or a builder with a mate with money buy a house in some God foresaken Northern mill town at auction for about 50K. They spend the next three months doing it up and nearly having a heart attack as they discover hidden nasties. The refurb costs 40K on top of the initial 50K outlay and then it goes on the market for 90K.

Am I missing something here. Is renovating houses so much fun it is worth it to make a loss.

Edited by crashmonitor
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HOLA442

Saw this programme on the BBC yesterday and I am still failing to grasp the concept.

Basically a builder or a builder with a mate with money buy a house in some God foresaken Northern mill town at auction for about 50K. They spend the next three months doing it up and nearly having a heart attack as they discover hidden nasties. The refurb costs 40K on top of the initial 50K outlay and then it goes on the market for 90K.

Am I missing something here. Is renovating houses so much fun it is worth it to make a loss.

Been that way for years. They could have earned more from working down McD's for the six months they spent on 'the project'. That program still makes me laugh as they rarely seem to make that simple observation.

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HOLA445

Been that way for years. They could have earned more from working down McD's for the six months they spent on 'the project'. That program still makes me laugh as they rarely seem to make that simple observation.

Anybody considering buying property should make this essential viewing, if the builders can't profitably flip then we have bloody no chance. Also essential viewing is where Phil Spencer turns property detective and tries to sell boomers property that has been on the market for several years. Even after his makeovers they still don't bloody sell.

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HOLA446

Concept is this: pretend it's still 2003 and that there is easy money to be made from doing up properties.

Now let's think about the replacement housing reality program: Property Snake. Where the retired teacher buys property at auction, finds out reason it had to be auctioned and ends up selling at a huge loss. Where the BTLer with 12 properties gets sent a demand from the bank to put in more equity (£20k per property) and has to sell at a huge loss. Where father gets son into the business, and son faces bankruptcy at age 21 when prices drop. Where retired person takes out £10,000 MEW and ends up losing the house to compound interest. Where the boys try working their way up to £1m pound property, and lose the lot when the market drops. Now won't that be just as interesting...

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HOLA447

Concept is this: pretend it's still 2003 and that there is easy money to be made from doing up properties.

Now let's think about the replacement housing reality program: Property Snake. Where the retired teacher buys property at auction, finds out reason it had to be auctioned and ends up selling at a huge loss. Where the BTLer with 12 properties gets sent a demand from the bank to put in more equity (£20k per property) and has to sell at a huge loss. Where father gets son into the business, and son faces bankruptcy at age 21 when prices drop. Where retired person takes out £10,000 MEW and ends up losing the house to compound interest. Where the boys try working their way up to £1m pound property, and lose the lot when the market drops. Now won't that be just as interesting...

Oh, I forgot the best episode: where Krusty gets to meet all the people she sold houses to, that are now in negative equity.

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HOLA448

For the last few years at least.

Buy House

'develop'

Find some 'expert' to value it at some wholly unrealistic price and shove it on the market

HUTH reports this price the basis for 'profit'

Then i watch program, look for house on rightmove, and lo and behold, house is still sitting on the market. Profit £0.00. Potential loss, growing all the time.

Actually, occasionally, they do have competitiors who mention theres no profit till its sold, and they usually get eyeballed by Martin or the woman one.

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