Many would-be property developers refuse to resign from their full time jobs and launch headlong into a new career in real estate on a whim. They sensibly like to test the waters first, purchasing a fixer upper and doing it up in the evenings and at weekends. Learning the ropes this way means your social life will inevitably take a hit, but you won’t have to surrender your income and steady wage. Learning to renovate a property in the most cost efficient way isn’t easy. It can be all too tempting to cut corners, forego a high quality finish and list your renovated dwelling at an inflated price. Instead, take your time with your first development and utilize this advice to help you create the perfect home to sell on to your target market.
Location
Nothing is more important when purchasing a doer upper than where it is situated. Ideally, you want to be purchasing the worst house on the best street. A dwelling can be modernized and turned into something beautiful, whereas a location can never be changed. Check out the ceiling price of the area you are looking to buy in, and investigate crime rates and local schools. Judge the quality of the location and ensure that you purchase in an established area with a good reputation.
Budget
Remember, the aim of any property development is to make money. You aren’t creating a designer show home out of the goodness of your heart at the detriment of your finances. If you are allowing your budget to get out of control, don’t think that you can simply inflate your resale price. The world of property doesn’t work like this. You will end up selling your pad at a loss. Instead, develop a spreadsheet budget detailing every fixture and fitting from the carpet and roof tiles to the tiniest of pipe alignment tools and screws. Making sure that you have everything listed means you won’t go over budget. If an unforeseen circumstance arises, ensure that you have budgeted at least a ten per cent contingency. Factoring this into your budget means that you will still make a tidy profit.
Think Of The Project As A Business
Don’t get too personal and get attached to the property that you have bought. You will need to make some important decisions about decor and interior design. Don’t allow your personal preferences to get in the way. While you might like the retro 1960s inspired shocking pink geometric wallpaper and avocado bathroom suites, the chances are that your potential buyers will not. Instead, utilize a more neutral palette but don’t worry about injecting a little bit of color and personality into your furniture and soft furnishings. You want to dress your property so that it exudes a potential lifestyle to seduce your buyers.
Buying a property to fix up ready to resell to a new purchaser is harder than it sounds. While the current swathe of TV shows make property development look like a walk in the park, the reality can be different. Use this guide to ensure that you renovate your property successfully and turn a profit.
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