Have you ever watched a programme about property development and been tempted to give it a go? All those wonderful before and after shots make it look so easy. From our comfortable sofas we cockily criticise their design decisions, mock their progress and vocalise how we would do it differently. But how many of us really appreciate either the potential problems or the potentially life changing benefits of renovating a home either to live in ourselves or to rent out.
So what can you do to mitigate the risk of your dream home renovation becoming a nightmare?
Set a goal
What is your end goal with the property? Do you want to flip it, rent it out or create your forever home? You need to remember your goal when looking for a property. If it is to be your forever home then it should be in an area that you want to live in. Alternatively if it is to be a rental property then you need to make sure that it is in an area that is attractive to your target rental market.
Make a budget
Set yourself a budget for each room and try your best to stick to it. Don’t be swayed by expensive tiles or paint. If you are planning to rent out the property then your tenants are unlikely to care whether you use Dulux paint or Farrow and Ball paint. If you are doing the property up for your own family then you may be happy to splurge in certain areas but make sure that you always keep an eye on your budget. Just as in the television programmes you are likely to go over budget so make sure that you factor that in.
Plan
Frequently diverting from or changing your plan will cost you time and money so try to stick to it. The longer the renovations go on the more money you lose in potential rent. The longer you have to pay your mortgage or utility bills for the property, the more they eat into your profit if you are flipping it. If it is your forever home then you will be reducing the amount of time you get to live in it.
Have a valuation
When all of your hard work is finished, arrange a valuation so you can find out just how much all of your hard work has added to the value of your property and how much its rental value has also increased.
If you manage to complete all of those then congratulations you are a successful property developer and you will be able to reap the financial rewards of your endeavour.
If you are looking for a property to renovate please give us a call on 01925 235 338 so that we can add you to our earlybird list so you can be one of the first people to hear about our new listings.
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