Discover 4 things that you need to know before you make an offer on a run-down property.
Have you always dreamed of renovating a property? Taking a dilapidated house and transforming it? Choosing every element of the fixtures and fittings and making it fabulous? But property development is not for the faint-hearted, and there are many things you need to know before you start living your very own 'Grand Design' dream.
If you've ever watched Grand Designs, Homes under the Hammer and frankly, anything hosted by Sarah Beeny, you will most likely have dreams of renovating a property of your own. It's so rewarding to transform an unloved property into a gorgeous home, but it takes blood, sweat and tears and can often be quite the rollercoaster journey.
And, of course, no matter how wealthy you are, there will always be a budget that you'll have to work within.
When a project comes on to the market for sale, there's always a flurry of interest from builders, contractors and developers from all experience levels. They can really generate lots of interest. So what can you do to ensure your property development dreams don't become a nightmare?
Really look at the property:
It might sound obvious, but it's easy to get carried away with the excitement of the property's potential. Planning and visualising the palace you could create and having creative ideas about the layout and the finished result. But - stop! Take off the rose-tinted glasses and really look in depth at the property, and what needs to be done to create that palace you're dreaming of.
Get the professionals in:
If a property is in poor condition, some of your best investments will likely be in an in-depth survey. So often, developers think that the problems with the property are clear to see, so there is no need to have a survey, but there are many potential issues that you might not be able to see, regardless of your experience or whether you have purchased a damp meter for yourself. Spend a few hundred pounds on a detailed survey so that you know exactly what you are dealing with and can budget and plan accordingly. It could be the best money you spend.
Set a budget:
For most of us, there is not an endless supply of cash available for a renovation. Even if you have a healthy budget, there will be a ceiling price on the properties in the area that you won't want to go too far above, as you might not be able to sell the property for a high enough price to recoup your investment if you overspend too heavily.
Have a contingency fund:
No matter how closely you monitor the costs and budget, there are almost always unforeseen issues when you start working on a property, so ensure you have a contingency fund. It would be terrible if you ran out of money just before you finished the project.
Developing a property is tiring and involves lots of hard work, but it is very rewarding and can also be very lucrative if you get the budgeting and development plans right.
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If you are in the middle of a renovation, you will want to know that the hard work you are putting in has been worth it, so get in touch to arrange a valuation with one of our expert property valuers.