Quote from: delinquent on September 03, 2013, 01:39:51 PM

The property market here in the UK seems to be doing fairly well. A lot of people are buying up property at auction, doing it up and selling it on for a profit.

Example, from UK TV show "Homes under the Hammer" - youtube link: http://www.youtube.com/watch?v=ftuzyyz693E

The first property is shown as a rather run down house, purchased at auction for £47,500.

The house is re-visited at about 26 minutes in, renovated at a cost of £25,000.

This makes a total outlay of £72,500.

The valuation (at 30mins in) is £90,000.

Total pretax: £17,500.

Rental valuation: £500 - £600 (3-4% approx).

What about a crowdfunded business in this market, using bitcoin?

Idea only, I'm not asking for any investment!

Im not saying its not a viable business but you might want to align yourself with someone who has a ton of real estate experience first. Profit margin is very low for what your looking to do, you need to factor in real estate agent fees for selling the property after its refurbished, unless you plan on doing that yourself which is a huge headache, then theres closing costs when you sell it & then you have to pray that buyer doesn't want to negotiate. Valuations in real estate are not end all be all for determining the price your going to get for selling it, in the end it worth what someone is willing to pay for it. Lets not forget there's also carry costs until it's sold