Property Building & Renovating Renovating to Make a Profit
Renovating to Make a Profit
Whether you are renovating for business or pleasure, one of the main targets is to make a profit. If done properly, a renovation project can be the quickest and easiest way to make fast money however, if you are not so good at sticking to a budget, then you risk losing profit quickly.
The first thing you must do before you proceed with renovating is that you must have a property to renovate. When looking for property to renovate, make sure that is is suitable for whoever is looking to buy it and live there. If you are choosing a property for yourself to live in, then don't be fooled when you spot a huge property at a low price. It may seem cheap, but is it still economical when you have to pay to heat it through the winter and have the air-conditioning system on during the summer?! If you are planning on buying a property to convert and then to re-sell, then think of whom the potential buyer is. Do you want the property to be aimed at a couple or a large family?
Before taking the plunge and signing the papers to purchase the property, find out if planning permission can be gained easily. If the property has been on the market for a long time, why hasn't it sold? Some properties may seem perfect, and although you may be wondering why someone hasn't already snapped this little gem up, is there an underlying problem that you are not yet aware of? Often you may find that there has been a lot of interest in a particular property, but when property viewers become aware that getting planning permission is almost impossible, they stay well away, which is why many properties that would make an easy renovation project, are left on the market for long periods of time. This also applies to bars and restaurants for sale, they may have been ran by a local for a long time without any problems from the authorities, but then the new owner is required to update the premises and deal with all the red tape that comes with the new business and today's' laws.
After you have found a property to buy, get a detailed surveillance check from a reputable surveyor. Obviously when you purchase a property with the intention to renovate, you expect to find problems with the property. However, with the help of a surveyor, you will be able to get an idea of how serious the damage is and how much work needs to be done. If your property requires planning permission, ensure that you have dealt with all the paper work before even picking up a hammer, and when the legal stuff has been sorted you can go ahead and start.
Once you have got your property, you can begin your renovation project and start work! Plan carefully and think realistically about how much you can manage by yourself and at what parts do you need hired help. If you employ someone to help with labor or to do a job that you can't, remember to get a fixed price before they start work, this way you can stick to your budget and avoid problems with your workers. Allow in your renovation budget for the added extras of labor (if needed), spare tools, extra materials, repairs and the possibility that you may have to re-do something if you have made a mistake or changed your mind.
Where do you make the most money on a renovation project? Where do you need to splash the cash and in which parts can you tighten the purse strings? Well, the mistake that some renovators tend to make is that they try too hard to make the property perfect. If you intend to re-sell the property when it is finished, then don't spend over the odds on fancy furniture and decorations all over the house. Keep each room plain and simple, but on the other hand welcoming and homely too. Don't overload the house with loud furniture or designs; this should be up to the buyer if they choose to buy the property. Potential buyers want to move in to the property and make the house their own home by putting their own mark on it. Often, it doesn't matter how nice you have decorated a lounge, it is very likely that a buyer will then move in and change it, so keep the designs and furniture minimal.
Bathrooms and kitchens are where the money is to be made! This is what adds profit to a property. By adding a good quality kitchen and bathroom, you can add a lot of money on to the price and it is what potential buyers are most interested in. To add profit to a house, you must have a good quality bathroom and kitchen. Other things that can add profit are en suites and clever storage, when buyers see that the property has built in storage cupboards or units that take up very little room, the property will immediately become more appealing.
Renovating on a budget can be difficult, so it extremely important to shop around and talk to people who know reputable workers and where to get quality materials. Depending on when and where you buy to renovate, you can make good money in little time.