George Clarke says couple broke ‘main rule’ of property developing leading to slim profit
Flipping Fast: Couple devastated at profit made from renovation
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George Clarke’s Flipping Fast saw six teams of first time property developers battling it out buying, renovating and selling homes across the country. The teams were given £100,000, and whoever makes the most profit over a year will win £100,000. The money they’re given must cover the price of the property price, any fees and renovation costs.
The teams can buy and sell as many homes as they like throughout the year.
However, if they spend even a penny over £100,000 they will instantly be disqualified.
The teams also gained advice from property experts Stuart and Scarlette Douglas.
Husband and wife team Gordon and Pamela were the first to purchase a property.
They worked full-time on the property while living in their caravan.
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The couple bought a house they had never seen, 240 miles away from their Norfolk home in a village near Stockton-on-Tees called Fishburn.
Unfortunately, prices had dropped in the area by 11 percent in the last year.
George said the couple had broken one of the “cardinal rules” of developing.
“Not researching the area, or viewing the house and failing to get a survey” he added.
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Scarlette said you should always “buy the worst house in the best area but if they don’t know where the best area is, they could buy the worst house in the worst area”.
George continued: “Pamela and Gordon have broken one of the main rules of developing – buying a house they’ve never seen.
“They might get lucky or they could have made a very expensive mistake.”
The property was over 700 square feet and the DIYers tackled most of the work themselves.
George visited the couple at the beginning of their renovation project.
The property expert wanted to know why they had decided to risk buying a property without viewing it.
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“We needed to get in quick,” Gordon said.
George said he wouldn’t recommend buying a property without seeing it first.
They paid £52,500 for the property and were planning to spend £6,000 renovating the home.
The couple paid just £3,000 less than the average price of a fully renovated property in the area.
However, their budget was soon scuppered when an electrician inspected the property and claimed the wiring was dangerous.
The couple spent £3,000 on having the whole property re-wired.
To save money, they bought a secondhand kitchen and did the decorating themselves.
The couple were hoping to make a large profit, but were left disappointed after making just over £1,200 profit.
In total, the couple spent £68,970 on the property which included renovation costs, buying costs and selling fees.
The property was sold for £70,250, giving them a profit of £1,280.
Gordon said an estate agent told them they had done “too much work for that area”.
“If we’d picked that up and moved it four miles up the road, we would have been up in £100,000s,” he added.
George Clarke’s Flipping Fast is available to stream on All4.
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