Make sure you don't spend too much refurbing your property to rent out. Yvonne Emery explains how to be sure of how much it will cost so you know how to make a sensible offer. Slides that accompanied a webinar, www.YvonneEmeryCoaching.co.uk for full audio.
1. The Must-Know strategy For 2011 How to cost your refurb with Yvonne Emery Property Investment Coach www.YvonneEmeryCoaching.co.uk
2. Ask your questions and we’ll try to answer as many as possible at the end Make your comments by e-mail afterwards and we’ll respond to them We will mute the call except for presenters and answer questions sent in using the question box The seminar will end at 8.15pm.
3. Current Market Low capital growth Cash-flow is King Financing is difficult Spent our deposits Using other people’s money Attracting Joint Venture Partners.
4. Benefits of Refurbs Single Let / Multi-Let / HMO Tactile profit that people understand High ROCI – Return on Capital Invested Potential for J.V. Partners Wanting 25% off loses the deal New vsRefurb – Client’s story.
5. The true cost of a refurb Electrics and Plumbing Heating and Bathrooms Box 2 Kitchen / Diner Living Room Structure and Size of rooms Clearance Box 1 Box 3 Tiling and Flooring Decorating Furnishing Box 4 Box 5 Box 6
7. The things we forget Finder’s sourcing fee Legal fees 10% for contingencies Clearance costs Broadband Insurance Management Fees.
8. Cash-flowin 2 minutes flat Single let Rent pcm – mortgage pcm = £Z x 0.8 = £NP pcm Multi-Let or HMO No. of rooms x £ per room x 52 / 12 = £GP pcm Less costs = £NP pcm HMO License Approximately £80 per room (depends on Council) Costs include: Mortgage; Council Tax; Electric; Gas; Water; Broadband; Insurance; Management charge.
10. Why Size Matters 3 to 4 bed 5 and 6 bed Lounges 10m2 or 7m2 Kitchen cupboards Double occupancy King size, Queen size or double Bathrooms per person.
11. Review Know your cash-flow first Know your costs each month Know your refurb costs using a schedule of works Offer based on cost of refurb Learn more at the June 4thworkshop. www.YvonneEmeryCoaching.co.uk