So the wait is finally over, you’ve bought a property at auction as an investment and now the fun beings as you make the property into a profitable renovation.
With programmes like “Homes Under the Hammer” and “Property Ladder” inspiring millions to buy and renovate properties it can be a common (and expensive) trap to fall into if you are new to making a profitable renovation. BEFORE you make your investment be sure you do your research and calculate the maths before signing on the dotted line.
Top 5 Tips for a Profitable Renovation
Call in the professionals
If you’re not a DIY expert, call in the professionals. Employ registered tradesmen and builders to plan and complete the job. Ensure you get quotes from at least THREE tradesmen and references prior to committing to one. Property renovations can be no easy task and it can be much more cost and time efficient to hire a professional.
It can be easy to get carried away with moderations and supplies during the process too. Ensure you have a clearly defined budget and timeline. Draw up a written agreement with each tradesman so you have in writing how long the project will take and the cost. Agree up front how payments will be made.
Onwards and upwards
Property guru from Location Location Location, Phil Spencer advises “the easiest way to get an extra bedroom or bathroom is to build a loft. It’s not particularly disruptive, either, as most of the work can be done from outside.”
Remember though, easy access is essential along with standing height across the conversion. A steep step ladder to get to the conversion won’t do the trick.
It’s not for you
If you’re looking to make a profitable renovation you need to take yourself out of the equation when it comes to home interiors. When it comes to colour schemes, opt for neutral tones and avoid controversial colours where possible. When prospective buyers view the property you want to make it as easy as possible for them to see it as a blank canvas – allowing them to make their own mark. Bright purple walls may be on trend but might not be to everyone’s tastes. Check out this great blog on how simplifying your colour scheme can have a huge impact perception of space too. Come on … off to B&Q for some magnolia, you know you want to ….
Plan for planning permission
You don’t have to go the whole nine yards when it comes to renovating a home for reselling. Indeed just having the planning permission for a basement conversion or extension can add value to the property and can be a lot more attractive to buyers who potentially could be looking to add an extension but don’t want to go through the hassle of the application process. It’s less hassle (and cost) for you too as you don’t need to go through the entire process of managing the project from start to finish.
Park for free
Depending on where your property is and what on-road parking is available, a parking space could potentially add anything from £5,000 to £50,000 onto the value of your house.
You’ll need planning permission from your local council and as always, remember to calculate the cost of doing so against the added value it could bring to the house – but if you have a front garden that can be converted, and limited or no parking spaces currently available this could be a lucrative way to make a profitable renovation.
Looking for more top tips?
- The Telegraph share their 20 Tips for a Profitable Renovation
- Check out Waterstones too, they have an extensive collection of Home Renovation and Extension books