Top things that you need to consider before buying a property that needs refurbishment
Shows like Escape to The Chateau can soon make you fall into the romantic notion of renovating a property.
Watching a few episodes can make the whole idea alluring.
But, renovating a property can be anything BUT glamorous.
Here are a few things you need to consider before embarking on a restoration of your own!
Shows like Escape to The Chateau can soon make you fall into the romantic notion of renovating a property.
Homes under the hammer can show how much money can be made by renovating a property.
And Grand Designs shows you how attention to detail and interesting architectural features can really give a home the wow factor.
Watching a few episodes can make the whole idea alluring.
Who wouldn't want to wander around the grounds of their very own Chateau in the French summer heat, sipping crisp white wine? Or croissants and coffee for breakfast on your patio overlooking the rolling French countryside.
Maybe you have dreams of creating a portfolio of property investments, generating an income and leaving your hectic 9-5 life to work in property development full time?
Or even hosting a family BBQ on the porcelain patio that wraps around your multi-million-pound one-off unique build that resembles a modern yet luxurious mansion with a carefully curated interior, a statement fireplace or a kitchen island in the centre of the room.
But, with all of these renovation dreams comes a distinct lack of glamour.
Indeed, renovating a property can be anything BUT glamorous.
If you're restoring an existing building, you can expect to uncover years of dirt, grime, and probably insects and former animals with which the property has shared itself.
A new build involves years of planning and preparing, only to spend months in a muddy field, waiting for a home to appear.
The dust and dirt are seemingly everywhere; it's almost impossible to escape. And there will inevitably be days where the power, heating or water is turned off whilst pipework is repaired or replaced. This can be made even worse if you have to live in the property while it's being renovated or in a caravan on site.
But, there's still a certain appeal to pulling a property back to the bare bones and starting from a blank canvas.
And with a blank canvas comes the ability to add your own stamp to the property, with interior design and consideration to the period charms of the property. Making the interior exactly as you want it and being able to restore a property back to its former glory.
But renovating a property comes with many risks, and caution should be taken before getting your hard hat and sledgehammer out!
What's needed: What extent of renovation is required? This will largely depend on your end goal for the property. Do you plan to refurbish and sell the property? Or will you keep the property to live in? Perhaps you plan to rent the property out to a tenant or as serviced accommodation? The end use for the property will determine the kind of refurbishment you'll do. Will you hire an interior designer? Or will you choose hardwearing materials that are easy to replace in case of damage? Perhaps you will opt for a more luxurious finish? Is this your dream, 'forever' home? You'll likely not want to scrimp and save too much on the final fittings if it is. But, if the property is going to be sold, perhaps you can remove your own personal design taste a little and opt for something that will appeal to the majority of potential buyers.
Budget: What budget do you have to do the renovations? It's essential to set a budget. Otherwise, things can spiral out of control pretty quickly. And make sure to include a contingency fund for overspending. If you've ever done any kind of refurbishment before, you'll know there are always surprises. Things you couldn't have known before will helpfully unveil themselves when you start to peel back the layers of a property. And repairing these 'surprises' costs money.
Is it enough?: Will the budget cover the required tasks? You need to know that your budget will cover the main jobs in the project. Plumbing, heating, electrics, plastering, flooring. The list goes on. And many economic factors have resulted in the rising cost of trades and materials. So your quotes from a year ago will likely not be high enough now. Get up to date quotations from all necessary trades to ensure that your budget will stretch far enough. There is no point in having a considerable flooring budget for the highest quality carpets and choosing the cheapest bathroom fittings because there isn't enough money in the pot. Make sure that you assign the correct amount of your budget to each task.
Show me the money!: How will you fund the renovation? There are many ways to fund a property renovation. Bridging finance, cash, loans, outside investors? All have pros and cons and could add additional stress if you're working to a deadline or have high-interest payments. Perhaps you need the property value at the end of the job to be at a certain level to allow you to pay off a bridging loan. We don't have a crystal ball. It's impossible to know what the market will do in 12 months. And if you are using cash, presumably, this is a finite amount and not a bottomless wallet?
Whichever way you look at it, refurbishing and renovating properties is expensive.
Yes, the end result can often be a value increase to the property that will more than pay you back for the work you've done, but it comes at an upfront cost.
By deciding from the outset what the end user will be for the property, you can prevent unnecessary overspending. And then, getting accurate quotes for all jobs that may need to be done will allow you to stay in control of the budget.
Then it's time for the fun to start - grab your sledgehammer and get stuck in!
If you're renovating a property, let us know! We love to see the before and after's of properties and the hard work that's gone into the projects.
And, of course, you will need a valuation when the works are complete to see the fruits of your labour! So get in touch with our team of property experts to arrange a valuation today.