When to use Yellow Apricot - novices |
YELLOW APRICOT WORKING FOR PROPERTY NOVICES
With house prices seeming to be a better investment than any other, virtually everybody everywhere is thinking of buying property to resell at a profit. The property novices who are would-be property developers should remember that you do not always make a profit out of property and you can make a loss if you get it wrong.
However, this does not seem to stop many novices who choose Auctions as a place to try to snap up a bargain.
Example:
Miss Gold earns £15000 per annum as a secretary and has been left £100000 in a will. The money is sitting in her bank account earning her 4% interest. Friends have advised her that she should buy a property at Auction and do it up for a quick profit. She has done her research and had a property in Birmingham valued at £85000. The property needs approximately £20000 spent on it to get it into a saleable condition and it will sell for £120000. Miss Gold has enough money in savings in addition to her inheritance to finance this deal if she can get the property for up to £90000.
At the Yellow Apricot Auction, the property sells for £88000. Miss Gold ends up spending £25000 including fees on it and resells it at a Yellow Apricot Auction 3 months later for £127000, making her a tidy £12000 profit after fees and expenses. This is virtually as much as she earns as a secretary in a whole year. As a result she ends up leaving her job and doing property developing as a full-time occupation.
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