Property renovation projects are very popular and can be a good way to see a good return on a financial investment. The property shows on TV make renovating a property look so easy, in reality the whole project can turn into a money pit, if initial research isn’t done thoroughly. Costing is essential, as is getting the renovation work completed to a high standard without blowing the budget. With a bit of planning you may have developed your own property portfolio in no time at all!
The remainder of this article looks at ways to renovate a property with maximum profit.
There are websites available that concentrate solely on renovation projects. They list the properties within local areas and give a little information regarding what is involved. Once you find what appears to be your perfect property it’s essential to do your research. How long has the property been on the market? What prices do fully renovated properties attract in the same vicinity and is the property in a sought after or up and coming area. All these questions will allow you to decide if there is enough potential profit in the property and if it will be easily sold once the renovation is complete.
What condition is the building in?
Before you part with any money you need to get an in depth survey done on the property. A chartered surveyor will be able to uncover any structural damage including subsidence and damp. Both of which attract major costs to put right. As you are taking on a renovation project, there will be costs involved, but if you can account for them before buying the property you will be aware of the costs and may be able to negotiate a lower purchase price.
It’s important to get a good idea on the condition of the inside of the property. Get information on the condition of the electrics, water supply and gas services. It may be necessary to hire the services of a pest control organisation. If the property has been empty for a while pests such as rats, mice and cockroaches may be an issue. In certain parts of the world bedbugs are a problem and they are very difficult to eliminate, ABC Home & Commercial Bed Bug Exterminators will be able to advise and treat.
If you are intending to extend the property ensure you get the land surveyed to reveal any planning issues that may arise. Once you have completed all the necessary checks, work out whether there is sufficient profit in the project. You will be able to work out an estimated overall cost of the renovation.
Go to auction
The most popular way for renovation properties to be sold is at auction. There is hot demand for good properties with plenty of potential profit, so expect a bidding war.
Bidding at auction can be a daunting prospect if it’s your first time. It’s important not to get carried away and overspend. Keep the absolute maximum price you’re prepared to pay at the forefront of your mind and don’t go over it! Remember the lower the price the more profit, it isn’t your aim to break even or spend more than you intended.
Once you have the keys, try to start and complete the renovation as quickly as possible. The more time it takes the less profit. Start with the major structural tasks such as the roof and damp issues. Once you know your property is water tight you can move onto ensuring facilities such as electricity gas and water are connected to the property.
Even if you’re a dab hand at DIY or a fully fledged builder, it’s likely that you will require the assistance of tradespeople to complete some of the renovation. Always get three quotes at the very least and look at reviews from previous customers.
Ensure that your property renovation is completed to a high standard and use quality fixtures and fittings. The tint details matter to prospective buyers. Bathrooms and kitchens are the main selling points of properties so ensure these areas are top notch.
Decorate the whole house in neutral colours so that prospective buyers can imagine their own items within the property. Light colours maximise space which is always a bonus.
Clean the property thoroughly to remove all traces of dust and building work. Concentrate on the outside of your property by weeding the garden and cleaning windows. Add a few colourful flower pots to give kerb appeal. First impressions of a property count.
Prior to putting your property back onto the market, get it valued. You will have hopefully made a tidy sum!