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Can you make money renovating 0ver-55s property?

(20 Posts)
HettyMaud Wed 11-Dec-19 13:06:55

Have seen a "tired" over 55s bungalow for sale. Can money be made on renovating this type of property? We've done a couple of normal bungalow renovations so know how to do it. Just not sure whether, in this instance, there might be money to be made as these properties are always cheaper than the market. Can't afford any other type of property at the moment.

Pythagorus Sat 28-Dec-19 18:59:57

You make your money when you buy. You need to buy cheap. Work out what you need to spend and add a contingency. Then look at what the last few sold for. It’s a simple calculation.

oldgimmer1 Sat 28-Dec-19 19:50:35

I doubt there's much to be made, tbh.

I'd investigate the reason why they're selling cheaply - could be limited demand, could be restrictive leases or covenants, or high service charges.

I live in a decent area, where demand is high, but some of these types of properties are on the market for years.

I'm always a bit sceptical of the profits to be made from property tbh.

Pythagorus Sun 29-Dec-19 18:49:43

Also it depends why you want to buy it. Is it to live in? Are you looking to make a quick profit by buying and selling quickly? The way I did it is to put a deposit down, get a mortgage, rent the property out and the rent paid the mortgage. The property rose in value over the years. Then one can sell, pay off the remainder of the mortgage and keep the profit. Or keep it til the mortgage is paid off and the rent becomes part of your pension.

notanan2 Sun 29-Dec-19 18:58:48

They dont sell quicky or easily. And when they DO sell its the management company that profits.

You are also unlikely to qualify to buy one of its not to be your primary residence.

MargaretDavis Thu 17-Feb-22 09:41:01

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Germanshepherdsmum Thu 17-Feb-22 09:54:55

Well of course you would have to be over 55 in the first place to buy it.

Oopsadaisy1 Thu 17-Feb-22 10:12:54

Assuming that you will be allowed to renovate it and then rent it out, what has been done already? If it doesn’t already have a wet room and wide doorways, higher plug sockets, and you do the work on those things, then you might make a bit on reselling, but with the fees it might not be worth the effort.
If however you are buying it to live in for 20 years then go for it to make it comfortable for you.
However it’s a restricted market just for over 55s, with low resale values and high service charges, so unless it’s incredibly cheap, it would be better to go for an unrestricted property , pay a bit more, but open to all ages and families.

Peasblossom Thu 17-Feb-22 10:14:31

Bear in mind most properties of this kind require you to pay a percentage of the selling price to the Management. Sometimes 1%, sometimes 3%. I saw one which was 1% of every calendar year you owned it,

Oopsadaisy1 Thu 17-Feb-22 10:18:53

It’s certainly, win, win for the Management Company then.

Germanshepherdsmum Thu 17-Feb-22 10:52:18

Freehold properties of this kind are available, no management company involved, but they are subject to restrictions on the age of people who may own or occupy them so resale can be difficult.

M0nica Fri 18-Feb-22 10:25:40

If I was renovating a peoperty to make a profit. I would not touch a retirement bungalow.

Bear in mind that most older people buying those bungalows are likely to be conservative in their furnishing and decoration tastes, so radically upgrades, all shiny white and black for example, will limit yur resale market even more. You can decorate it, possibly put a new kitchen or bathroom in, but anything further is likely to make it more difficult to sell and I am not sure you would get your money back.

LilacChaser Fri 18-Feb-22 10:30:46

They are like gold dust in our area! One came up for sale only the other day. By the time I'd rang the estate agents, she told me the owners had had to stop accepting viewings as they'd been inundated.

It must depend on the housing market where you live because all the bungalows have been sold here -whatever state they're in.

Germanshepherdsmum Fri 18-Feb-22 10:54:29

I assume they’re not all restricted to occupation by over 55s though LilacChaser?

GillT57 Fri 18-Feb-22 12:30:00

There is a big difference in bungalows, which I agree, get snapped up incredibly quickly, and over 55s properties which will have some kind of covenant (otherwise they couldn't restrict ownership or residence to over 55s).

M0nica Fri 18-Feb-22 15:27:03

Most of these bungalows are clustered in dvelopments where the company that built them still exercise iron control on what can be done to them. I very much wonder whether anyone would be allowed to buy one just in order to do it up and sell it on.

Also remember you may have to pay up to 10% of the price you sell it for to the lessors. So that commission will hav eto be written into your profit and loss account.

LilacChaser Were all the bungalows you mention on retirement developments built by companies like McCarthy and Stone , or Churchills, or are you talking about the general market for freehold bungalows, which I agree is always very active?

Katie59 Fri 18-Feb-22 20:21:29

Be very careful buying anything with a restrictive covenant that limits its saleability. Generally if you want to live in the property renovation is straightforward, if you rent it out there all sorts of regulations and costs involved, then you have to pay income tax on rent and CGT when you sell.

HeidiHeidi Tue 24-May-22 20:58:25

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Elizabeth27 Tue 24-May-22 21:33:59

Have a look at what the best ones are selling for in that area, compare that with your costs then you will see if it is worth doing.

M0nica Wed 25-May-22 14:30:24

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