You asked Sarah Beeny about Property Ladder, her frustrations with clients, and making money from property. Here's what she had to say.
Q: Do you get frustrated when your clients on Property Ladder don’t listen to you?
A: Yes, at times, it can be very frustrating but I do understand that it's their money and their project at the end of the day. All of the people we’ve filmed are passionately interested in houses, so we always end up having a certain amount in common.
Q: If the housing market really starts to cool, can money still be made in property development?
A: Yes. You should never property develop taking the market into consideration. You should always look at how the market is currently and build in your profit margin taking into account the possibility that the market might dip slightly.
Q: Have you ever lost money investing in property?
A: No one is infallible, but we try to not make a habit of it.
Q: Is it a mistake to become personally involved in the development of a house which you intend to let?
A: Yes. You should always be considering who is going to be living in the property and if it isn't you, you should not consider your own personal requirements, but those of the future inhabitants.
Q: What’s the story with developing and capital gains tax
A: You always have to pay tax if you are trading, which means that if you are buying a house with the intention of developing it to sell, you are liable for capital gains tax. You can speak to an accountant who will help you to decide how best your personal taxation situation should be dealt with.
Q: When preparing a house to sell, which areas are a must to be in perfect shape?
A: The structure, the roof, the plumbing and electrics, heating, kitchen and bathroom.
Q: Plumbing, decorating, building, electrics. Which is the most useful skill to have when starting?
A: General building and carpentry, as these are less quantifiable to sub-contract.
Q: Have any builders EVER completed their work on time on the show!!!?
A: Er...no!
Q: Or to budget?
A: Heh, a couple of them have managed to come in on budget.
Q: Do you film loads of shows at the same time or one after the other?
A: They are all filmed concurrently, as most projects last many months.
Q: Where would you suggest is the best place to buy at the moment if you want to make a decent profit?
A: It's always best to develop in an area that you are familiar with and want to live in.
Q: Would you recommend starting off in the current climate?
A: I personally would not recommend giving up a full time job or starting up at the moment. It can be so risky and if you can't find your next deal you could go very hungry. The current market is quite high to be considering a career in this area full time.
Q: Should we be looking for our next property whilst developing our current one?
A: You should always keep your eye on the local market and what is available. Auctions are a good idea, but you won't necessarily get a bargain there anymore than anywhere else.
Q: What would be the one piece of advice that you would give to a first time buyer?
A: Don't stretch yourself too much with a mortgage. Buy within your means - it's not worth the sleepless nights.
Q: If the housing market collapses are a lot of these amateur developers likely to get seriously burned?
A: Yes, because most of them are making practically no profit in real terms. They count their profit from a rise in the market, which is always unwise.
Episiode information and all the latest from property gurus Phil and Kirstie.
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