Buying a property to add value can be a truly exciting project. Whether you’re looking to sell it for profit at the end or build yourself a home to live in, there are plenty of considerations beforehand. Below, we explore how to find the right property and the pros and cons of this process.
Finding the right property
When you’re looking for a property to sell for a profit, you’ll be aiming for rundown homes with the potential for dramatic improvement. Consider location, size and the neighbourhood when considering the type of property to look for. From there, you’ll need to consider where to search for these properties. Careful research online can help you find them. But you can also chat with estate agents or local solicitors to try and find probate properties that are now available. Alternatively, you can visit property auctions to try and find some real bargains. Ultimately though, this is a numbers game and you’ll have to put in plenty of effort and time to find the appropriate property.
The main benefit of this process is that even the most run-down projects have plenty of potential. Indeed, you can add extra value by adding something like an extension. Make sure you get the right extension insurance to protect the work and plan the whole value and purpose of the extension. By carefully fixing up the place, you can make a significant profit.
Staying in the home
Alternatively, you can also benefit by turning this into your actual home. This can be an affordable way to get on the housing market. Plus, you’ll have full control over the renovations of the home. If executed well, you can end up with your dream interior.
On the other hand, budgeting for these projects is difficult. Any slight delay could see you go over your intended budget. You can mitigate this by saving up an emergency fund, but it’s worth being aware of the risks.
Easy to underestimate
It’s also easy to underestimate the scale of the work needed. Some homes will require more than just cosmetic improvements to the interior. Always thoroughly assess the work you’ll need to undertake before purchasing a home to fix up.
Risk you won’t add value
There’s also a risk that you won’t add the value you were hoping for. The housing market can be a difficult place and you can never guarantee you’ll make a profit on a home.
Buying a property to fix up can be incredibly exciting. And by following the advice above, you should be all set to start your journey.