Monday, 25 September 2017

Sadomasochistic purchase (but at a good price)

Happy to announce that a new project has been on-boarded! (At the border of a pretty good corner of south West London)

2126 sq ft residential and 717 sq ft commercial as well as a large yard with an amazing amount of upside. We believe we can add create up to 3500 sq ft of residential space.

Now I have to explain why the title of this post makes sense.
Well, the project is in Lambeth, which is the same council as the one we dealt with last time, and with all due respect.... It was a real hard battle we had to on our hands to get the plans through pre-planning stage successfully. To have gone in for more feels slightly masochistic frankly.

But on the other hand, based on the numbers we had crunched, it is the first time we bought what we believe to be a real good deal.

Obviously times are different and the climate not as bullish as pre-brexit but as Warren Buffet says "sell when everybody buys and buy when everybody sells" 

20 days to exchange, but for tonight a good celebratory drink should do it.

... A whole new adventure is starting.

Friday, 22 September 2017

Sleepless nights, will she be the one? (Warning derelict content)

The last auction was a fail. Undervalued the top bid by quite a bit with my maths.

Whatever it was, that the other parties took into account, I did not see it in such bullish light.
Approx 350k above the top bid I had in mind... That's quite a miss.

But maybe it's all for the best... Because there is another auction on Monday and there is quite a beauty awaiting!

Will this be the one? Will I be enough for her to let me wisk her away?

How much will the planners let you get away in the large yard? What will the building costs be? And what realistic resale values can be expected after turnaround? What are the VAT and tax implications for the company if we decide to rent units rather then sell (in case the resale market is weak)?

Too many questions for me to sleep properly.

Below what my dreams are made of ( I know not everyone's cup of tea - warning derelict content!)

Saturday, 2 September 2017

Getting serious again.

Despite not much sucess at sourcing the next project since the sale of the warehouse (now few months already), the scouting is on.

The subdued market post brexit means the buy needs to be particularly good value to ensure that little bit of extra margin buffer.

The last one we looked at (old printing works in north east london did not meet the reserve price and the planning risk felt a little too much for our apettite anyway...

But a new round of auctions is now few weeks away and one in particular has caught my eye.

So crunching numbers again and checking planning history (the basics)....

This one may be a mix of rental potential as well as planning upside and flip.

More soon.