Friday, 30 October 2015
There are a number of things you need to take into account before you start any renovation project, as they will help to make sure you are undertaking a project that is suited to you. When it comes to buying to renovate and sell, the trick is much the same as other types of investment; you have to buy low and sell high.
You need to do everything in your power to ensure that you know what you are getting yourself into. This means checking simple things like, "how long has the property been up for sale?" When a home has been sitting on the market for a long time, it may be an indicator that there is little profit to be had from it. You also need to check out the area you are buying into and learn about the type of people that like to live there. Location is key, so you need to be sure that the type of person who could afford your finished project will actually want to live wherever it is.
What to Buy
Old properties can have a lot of hidden problems, so (unless you want to run the risk of losing out big-time) you should get it thoroughly checked out before you buy it. This means getting in a surveyor for a full mine-sweep and any other professional people as required. You might buy at a bargain price, but this will be no consolation when it leaches away your life savings as you scrabble frantically to stop it from falling down. Structural safety is very important, as in any renovation you will want a strong foundation to work from.
Never be afraid to ask for assistance if you need it, particularly if the property you are considering has specialist features that you might not be familiar with already. You can reduce your early stage expenses by bringing in trades people rather than surveyors straight away, as you can usually gain free (or cheap) estimates for repair work from the separate specialists. Though this method will usually take longer than it would to simply hire a surveyor (as it will involve multiple trips) it could provide a much more economical way to decide if the project is right for you.
You need to know that you will be able to insure the property you are planning to buy, especially as this is likely to be a requirement for any mortgage you need to get it. Unoccupied home insurance will be needed as long as the house remains empty and renovation cover will be needed while you undertake repairs. Unoccupied house insurance is vital for any empty home, but an unoccupied property undergoing renovation is doubly at risk. Though you must insure your unoccupied house while it undergoes renovation, many insurers will refuse to offer you unoccupied insurance or renovation insurance when you need it most. HomeProtect, on the other hand, can give you a competitive quote online for unoccupied house insurance and/or renovation insurance.