So you’ve bought an investment property that needs some work done – what now? How do you make the most of your investment? Here are ten things to consider when planning your renovations:
- Check your figures
Before you start, check your numbers. When investing in property, it makes no sense to spend £15,000 on a renovation that will potentially only add £5000 to the value of the property. Speak to local agents and ask for their opinions on the possible returns available. They will also be able to give you advice on what style and type of property buyers or renters in your area are looking for.
- Consider your target market
Who do you think will buy or rent your property? A young professional couple will want an entirely different style of décor and fittings to a retiree or a young family. Keep your target market in mind when planning your work.
- Set a budget
Be clear on the money you have to spend and stick to it. Keep detailed records of all spending and make sure you always know how much of your budget is left. Set aside a sum as a contingency fund for unexpected expenses or emergencies.
- Stay on plan
Planning is everything in property development. A detailed project plan will help to keep you on schedule, ensuring you know what’s happening and when. The sooner the property is finished and sold or rented, the quicker you get a return on your investment.
- Keep it legal
If you are planning major building work such as changing the interior layout or perhaps building an extension, speak to your local planning department first to find out if you need planning permission for anything.
- Don’t go overboard
Investing in property is a business venture and while you might choose an expensive designer tile for your own kitchen, you don’t need it in your development. Give your development a high quality finish but don’t go overboard buying the most expensive products every time.
- Keep it classic
Don’t be tempted to use very fashionable fixtures as they will date quickly and may not be to everyone’s taste. In order to appeal to the widest possible market, keep the fixtures, fittings and décor of the property simple and classic.
- Use professionals when you need to
You might think you can save money doing work yourself, but it’s often more financially sound to pay a professional to do the specialist jobs such as tiling or decorating. Two or three days of work from a professional may work out more economical than you spending two weeks or more trying to do the same job.
- Shop around
Shop around for your fixtures and fittings. If you know exactly what you want, the internet can be a great way to find what you need at the best price. Alternatively, if you are prepared to be flexible, Ebay is often a great way to find one-off items or end-of-range products at great prices.
- Make it unique
Find some way of making your development stand out from other properties. It can be something as small as a spa bath or a steam oven, or as big as a cinema room or a gym, but a unique touch will make your property stand out from others on the market.
Anyone got some personal experience with renovations that they want to share? Did I miss anything?
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