In our last blog, we shared five of our best tips for renovating property for profit. If you haven’t read this already, you can find it here. This week, we will be adding five more tips to this list that we hope you’ll find beneficial.
If you are interested in delving further into this area, be sure to purchase First Time Property Developer by Nick Fox. Nick will show you step by step how to find a property, develop and refurbish it to add value, and how to sell it for profit or rent out for income. It is available to purchase on Amazon as paperback or for kindle.
- Add square footage.
One of the best ways you can add value to a property is to extend it. When considering this option, make sure that how you add to the house will appeal to your target tenant or buyer. Adding bedrooms is a great option, but ensure the house has enough living space to account for this. Before going in for a project like this, research carefully the cost of the extension and how much value it will add to the property.
- Do the work yourself where you can.
This is an easy way to cut costs when renovating a property. Tradesmen can be expensive, so only use them where you need them to enhance your profit margin. Don’t cut corners though as mistakes you make could cost you more in the long run. Certain jobs must be done by experienced workers however, such as gas and electrics.
- Secure the best possible asking price.
In order to make the best profit, you need to get your property for the lowest possible price. Make sure you know what needs doing with the property before you buy it however. Often cheap properties may have major issues that may cost a lot more than you might anticipate. If you haven’t developed before, it is a good idea to bring a tradesman with you to get an idea of how much renovations to the property will cost so you can work out the maximum price to pay for a property to make your investment worthwhile.
- Buy in an attractive location.
No matter how well you renovate a house, a house in an unattractive location is unlikely to attract high paying buyers or tenants. Buy in an area where property is in demand, and take a look at transport links and schools around the area that will bring interest to your property. ‘Up and coming’ areas on the fringes of popular locations are often a good place to look at if you fancy taking a bit of a risk as they can achieve high gains.
- Add storage.
A key thing people will often look at when viewing a property is how much storage is available. This is particularly true for families. Add walk-in wardrobes, and transform under the stairs into a storage cupboard for coats and shoes. If you are planning on renting the property out furnished, consider beds with good under-bed storage and box-style coffee tables that add handy storage areas for your tenants.
If you would like further advice on renovating property for profit, or other areas of property investment, talk to the team a Nick Fox Property Mentoring Services.
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