Buy To Sell
Overview
Property Prospector supports three types of property investment: buy to let, buy to let as HMO, and buy to sell.
Buy to sell usually involves some level of refurbishment or other investment into the property, increasing the value before reselling at a profit.
Your Property Prospector account includes financial calculators to give you an idea of expected outgoings and profits, which can be customised to your level of investment.
Creating a Buy-to-Sell Scenario
You'll need a property added to your Shortlist first; then select the property and you should find the Plan tab opens by default (if not, choose the Plan tab now).
Click Add Plan and you'll be presented with a financial plan for the property, with some values estimated based on property type, list price, and so on.
There are typically three costs to a buy to sell:
- Acquisition - the cost to purchase the property.
- Refurbishment - how much refurbishment is needed before the property is ready to sell.
- Ongoing Expenses - any costs or fees that you might incur while refurbishing the property, such as council tax.
You'll also have one source of yield:
- Sale value - the amount you expect to sell the property for.
Property Prospector takes all these into account when calculating your buy to sell plan.
Acquisition
Your initial investment - buying the property - is set up first. If you don't have these numbers, we'll try to estimate them for you based on the list price of the property.
The Acquisition Plan is discussed in more detail here.
Refurbishment
Toggle the Refurb field on if you intend to refurbish, repair, or upgrade the property. A new form will be added allowing you to add costs and timeframe:
- Expenses - add the costs for building work, council tax, and utilities. You can change each one to a monthly, annual, or one time fee.
- Add - add any other expense not covered by the above.
- Expected duration - how long you intend to hold the property for (ie: for recurring fees, how many installments will you pay).
Sales Revenue
Scroll to the Revenue field and change it to Sell. There are a few new fields to fill out:
- Expenses - expenses associated with the sale, particularly third party fees.
- Add - add any other fees associated with the same.
- Expected sale price - the amount you expect to sell the property for. This is not necessarily the list price.
Click Save Plan to store the financial overview.
Viewing Plans
Each stored plan for a property is summarised on the Plans tab for the property.
You can compare them at a glance, and click Details for more information or to edit a plan.
All types of plan are displayed here.
⚠️ Property Prospector does not tell you how realistic your figures are - these are calculations based on your input. Please consult a professional before making decisions on any of these figures.
