Developing and renovating property is a fantastic opportunity for making some extra money in property investments. There are several reasons why you might want to renovate a property – to make it into a house you eventually want to live in, to make more rental income, or to sell it on for profit.
Over this and our next blog post we are going to share 10 of our top tips on renovating property to make a profit. For more information and advice on this, check out First Time Property Developer by Nick Fox. A fantastic book leading you through the entire process – finding the property, adding value by refurbishing and developing it, and selling for profit or renting for income.
Here are the first five tips:
- Focus on the essentials first.
This is particularly important when working to a budget. Write a list of all the things you want to do to add value to the property, then prioritise the most important things first. This may include getting the property secure, rewiring the property, and any essential maintenance work on the property. Not only does this make sure you have enough funds for these essentials, but it gets all the messy building work out of the way before you start decorating.
- Consider remodelling the property if this is feasible.
Is there a way you can make better use of the space in the property? Perhaps a loft or cellar can be converted into a living space? Or making a larger room out of two smaller rooms? Think about your target buyer or tenant (or yourself if you’re planning on living in it) and how they would use the house. This is the best way to approach remodelling a property.
- Fix superficial defects.
Whilst these don’t necessarily add value to the property, not dealing with them can stop a property selling or renting out a maximum price. If you’re handy with DIY you should be able to deal with this for little cost too, so it’s definitely one tip to take on board. Here are some of the defects you should deal with: squeaky floor boards, broken tiles, leaky taps, squeaky doors and windows, and peeling paint.
- Always keep the end goal in mind.
It can be easy to get carried away with property renovations, and this obviously comes at a cost. If you are not planning on living in the property at the end, don’t get too attached to the property. People often get carried away with what they would want in the property instead of what their target tenant or buyer would want. It is often best to stick to a fairly neutral theme in this case too as the colour scheme you go for may not appeal to your target.
- Think about how durable the materials and paint you are choosing are.
Whilst we all like to cut costs where we can, this is an area you shouldn’t cut, especially if you are planning on renting the property out at the end of it. To avoid high on-going maintenance costs, choose hard wearing carpets and flooring and durable paint. It may cost you more now, but it will save you time and labour in the long run!
For more advice on property renovations and all areas of property investment, contact the team at Nick Fox Property Mentoring Services.
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