House/purchase advise

[Justice]

Okay so as a first time buyer and having short listed two properties I am at some what of a crossroads.

The two properties in question are on the market at 235K (3 beds) and 250K (2 beds). They are both located within the same village.

Whilst the 2 bed is valued at 15K less the agent has suggested that he could comfortably get that down to 240K (possibly even slightly lower). This property has been completely re fitted throughout, however my biggest concern is where can I make money when it comes to selling. The answer would be with great difficulty. That said I could move into the property and I would not need to change a thing.

The second more inexpensive property is considerably bigger with the benefit of a third bedroom. Whilst it isn't exactly to my liking right now in terms of fittings I can see the scope to increase the valuation somewhat (and at not too great an expense). I personally believe the price is extremely competitive given the size and has possibly been undervalued. My thought process would be to hold approx 5K (10 at a push) back on my deposit for home improvements. This would initially be for a new bath, toilet and a general renovation of the bathroom, new carpets throughout and to replace the existing living room floor with a lighter coloured wood.

Should I be concerned with sell on value as much as I am? Part of me thinks I'm over complicating things the other side of me thinks I'm correct in my forward thinking.

The other concern is how much should I spend on home improvements? Surely spending 10k on the interior doesn't necessarily mean you will see that return when you come to sell up? Or does it?

Help please, my head hurts!!

When purchasing a property you want to be able to take your hard earned capital back out to use for other projects. This is fairly easy to do if you find the right property. Forget the ones needing refurbishment these normally have a queue of buyers and they end up not being much of a deal. Its far better for example to find a three bed which can be made a five bed look for a corner plot or land to the side.

Get your planning application in if needed and if moneys tight just take a couple of years to complete the work a five bed in the right area is massive price jump from a three, once completed either re finance to release your initial deposit and build costs or sell and make a nice healthy profit.

You will have far more choice and less competition if you can buy just over the 250k mark due to the stamp duties but you will find much better deal by going just that little bit higher.

Something for you to consider.

 

[Surf's Up]

Didn't realise you'd moved back Chris. Have you sold your place in Vejer?

No, looking forward to spending more time there now that I have semi retired too!