The property market is not as lucrative as it once was, but you can still make a decent profit from renovating run-down homes. To make it big in this business, you have to adhere to some rules. Here are some tips to help you carry out a successful property renovation:
1. Buy the Worst Property in the Best Neighbourhood
People who are looking for family homes will rarely ever invest in a run-down house. If you find a home in a very bad state of repair, you are likely to be bidding against other property renovators. This means you will be able to buy the property at a very low price. It is easy to renovate a bad house and resell it for a very high price if it is located in a good neighbourhood. After renovating it, you will be able to sell the house at the average price of the area.
2. Aim at Bringing the Property to the Average Price of the Neighbourhood
Since you are renovating the house to resell it for a profit, you should avoid overinvesting in the renovation. One thing you should remember is that very few people will be willing to pay double or triple the average price of a property in the region. If a buyer has more than £450,000 to invest in a house, they will be looking for a home in a high-end neighbourhood. If you overinvest in the renovation, you may have to still sell the property at a lower price since there will be very little demand for the house. That can significantly lower your profit margins.
3. Focus on Renovations that Have a Big Impact on the Value of the Property
Some developments will not increase the price off your property significantly. For example, increasing the number of bedrooms from two to five will have a big impact on the reselling price. If you add more than five bedrooms to the house, the increase in value will be comparitively small. Some developments you should focus on include remodelling the kitchen, adding energy-efficient windows, and making sure the property has an optimal number of bedrooms. Since you are running a business, all your investments should have sizeable returns.
4. Invest in High-Quality Finishes
You should focus on achieving the highest possible quality finish since this can make your investment property a lot easier to sell. The quality of your finish is especially important if you are competing against other homes that have undergone extensive renovation. You don’t have to handle the process yourself, especially if you are inexperienced in home renovations. Consider hiring a professional to tackle this part of the renovation process. It may end up costing you a considerable amount of money, but you will be able to sell the property very quickly.
5. Let Professionals Handle Jobs Related to Electricity and Gas
All electricity and gas related jobs should be handled by a fully trained and certified professional. This is because small errors can result in serious legal problems. You can contact reliable companies like EJS Electrical to handle all electricity and gas related jobs.