I bought drab one-bed London flat for £179k and made £100k profit when I sold it – here’s how
A MAN who bought a one-bed London flat for £179,000 claims he made around £100,000 profit after doing it up.
Property developer Kazeem Alli-Balogun, who also has a TikTok page @PropertybyKazy, specialises in transforming drab properties into modern, desirable homes – and making a tidy profit due to his efforts.
Kazeem has an eye for spotting a bargain at auction that are in needed of sprucing up, before “flipping” the property and selling them on.
In a recent TikTok post, Kazeem shared the details of his latest success after he purchased the flat for £179,000 which he says is now valued at £300,000 having been renovated.
Although it is not stated exactly where the flat is located, Kazeem claims he invested just £24,000 to refurbish the home.
The footage on the social media site shows Kazeem breaking down exactly how the money was spent.
Kazeem starts off in the bathroom where £5,000 was splashed on floor to ceiling tiles and a feature piece.
He says all the flooring and woodwork was replaced too.
Throughout the property there are gold accents which cost £1,200.
The electricals were rewired and reading lamps and switch installed in the bedroom at a cost of £2,800.
In the lounge area, the carpet was replaced with laminate flooring for £1,000.
Another £1,500 was spent repairing the roof and it cost £2,000 to redecorate.
A handle-less appliance kitchen was installed for £6,000 and a new boiler and radiators cost another £2,500.
In total, Kazeem says the total cost was £24,000.
Many of the commentators were impressed, with one saying: “Really nice renovation. Good work.”
Others though wanted to know where the property was located as this could change the potential appeal of the property.
Some commentators also wanted to know who carried out the work.
One asked: “Did you do this all yourself? Or get builders.”
There was one commentator who remained unimpressed, saying: “I hate these cheap builds with eBay furniture sold to buyers as expensive grade a finishes.”
Kazeem will have made a tidy sum thanks to his efforts, but some of that increase will be down to rising house prices in London.
While it is not known when he bought the flat or how long it took to refurbish, over the past 12 months from November this year, house prices in the capital have risen by 6.9 per cent, according to the Land Registry.
This compares to an average increase in house prices across England of 9.6 per cent.
In absolute monetary terms, this translates to an average increase of £34,965 in London and £27,446 in England.
House prices in England have therefore increased more in relative terms, but less in absolute terms than they have in London over the last 12 months.
Anyone thinking of investing in property should be aware that house prices can go down as well as up and any potential investor could lose their money.
According to the Land Registry, the average house price in London fell by 0.6 per cent, or £3,206 to £554,113 in September 2022.
House prices fell in 11 of the 34 London boroughs during September.
Plus, Kazeem won’t pocket all the profit for himself as the sale of the property will be subject to Capital Gains Tax.
This is a tax on the profit made, not the amount of money received, when an asset is sold.
Capital Gains Tax applies when you make a profit selling a property which is not your home.
You may be able to get tax relief if the property is considered a business asset.
You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.
