Project Wright Street

This deal nearly stopped me from investing in property further. I purchased this property at the start of 2022. This is a pair of Tyneside flats, one ground floor, and one first floor flat.

Details

I was under the impression that the refurbishment on this property would only be around £3,000, how naive I was!

It turned out the property had really bad damp and woodworm, which I didn’t pick up on when I viewed the property.

The Numbers

Purchase price £92,350
Stamp and Legals £3,815
Broker fee £600
Refurb £13,500
Rent £1,000
This property cash flows £750pcm
This property is worth £120,000 today

I was under the impression that the refurbishment on this property would only be around £3,000, how naive I was.

It turned out the property had really bad damp and woodworm, which I didn’t pick up on when I viewed the property. I consider this one of the worst deals I have done. But I wouldn’t change it because I had so many lessons on this project.

If you don’t know how to price a refurbishment, take a builder around with you.

Always go back and view the property before you complete on it to make sure it’s in the same state when you first viewed it. I didn’t do that, but there would have been a lot of things I would have picked up on, which would have lend me to renegotiate on the purchase price if I did.

Value your time. on this project, I was doing a lot of the work myself to try and keep the costs down. Sacrificing time with my family in the process. I won’t make that mistake again

Just give the property some time, and it will forgive you. In the time I have owned this property, it has increased in value by around £26,500. And has paid me around £18,000 in rent.

Property is definitely a long-term investment. So don’t beat yourself up if a deal costs you more than you thought because over the years you will get that money back.

I have had so many valuable lessons from this deal. I have learnt from them, and it has made me a much better investor