If you’re looking to buy a run-down property and do it up to sell on as a money-making venture, then you’re probably planning to spend as little as possible in the process.
Of course, renovating somewhere to live in yourself still calls for getting the most bang for your buck, but where your cash is best placed could be different if you’re on a profit-making journey. So what do potential buyers value the most in a house, and how can you best transform your investment into profit? Here are my top tips.
1. Understand what work is needed
It’s always worth properly investigating how big a job it’s going to be to renovate a house. A scarily-derelict looking property could only need a cosmetic facelift, perhaps simply new flooring and a fresh lick of paint, whereas something that looks in pretty good nick might actually prove to have underlying structural problems that will cost a fortune to fix.
Look for signs of damp and subsidence, and check the heating, plumbing and electric systems are up to scratch. Invest in the appropriate professional guidance and make sure you know exactly how much faults are going to cost to fix.
No matter how much you love the idea of taking on the project, if a building calls for a fortune to do up then you need to be realistic about whether it’s worth the investment.
2. Look at its location
You could produce the best-looking house on a street, but if it’s in an undesirable part of town, the ceiling value is probably limited regardless of how much money you pump into it.
“Look at the price of similar renovated houses in the area,” says Jane Middlehurst from Poulsom Middlehurst. “The difference between those that have and haven’t had work done can sometimes be the same as the amount the update project cost. When you add in your time and the risk you’re taking, it may not be a worthwhile investment.”
Bear in mind that postcodes can go in and out of fashion – just look at east London. Judging where the next up-and-coming place is will always be a risky venture; going down this route is uncertain and may not pay off.
The post Renovation Guide: How to Add Value to a Property appeared first on Build It.
Article reference Renovation Guide: How to Add Value to a Property
No comments:
Post a Comment