With the buy-to-let market struggling under the weight of restrictive tax levies and rising stamp duties, it is estimated that rental yields have fallen by 62% since the beginning of 2015. This has left real estate buyers running for cover, although those with a little more foresight have sought out more viable models such as crowd-funding and renovating affordable, ageing structure.
Make no mistake; buying a cheap, run down property to renovate is an increasingly popular way to make money in the current economy. After all, property prices are continuing to rise exponentially nationwide, while there is not enough supply to meet the remaining demand among aspiring home-owners in the UK.
The Key Tips When Buying a Home to Renovate
So, if you love getting involved in a project and have the time and money to dedicate to renovating a property, it can be a great experience and a success. Despite all the advantages, however, buying as property to renovate isn’t for everyone, so here are some tips to make sure your renovation project is a success: –
Make Sure You Have the Funding
One of the most predictable things about renovating a house is that it always costs a lot more money than you predict it will. Making sure you have the funds at your disposal is vital to ensure that your project is a success as if you run out of money half way through your renovation project, it won’t make you any profit at all. It is also wise to create a contingency fund that can be accessed in the event that you do go over budget.
Do your Research
Novices to the renovation trade can be over ambitious when buying a cheap property and take on a project which is much more difficult than they initially predicted. By well researching the property market, you can find the right property for you. Sometimes something that looks like a bargain can be quite the headache further along the line.
Go for Dated Properties
The easiest properties to renovate are the ones which are dated and need modernising, rather than those which are structurally damaged and need expert construction work doing to them. If it’s one of your first times renovating a property, go for something which isn’t going to be a huge challenge so you can quickly get it finished and start reaping the profits.
If you do decide to go for dated properties that are structurally sound, the chances are that you will purchasing newer structures that are relatively restricted in terms of space. So while this type of renovation may be easier and less time-consuming for beginners, it will require a specialist skill set and an understanding of how to optimise the levels of available space in your dining room and kitchen.
Speak to the Experts
When renovating a property, getting an expert’s opinion at each crucial stage can be beneficial. When choosing the right property to buy, why not consider an online property auction like the ones at Allsop, where you’ll be able to find a wide range of different properties and get the expert help you need to make sure you pick the right one. Speak to a qualified builder before carrying out any construction work to ensure that everything you do complies with the correct rules and regulations.
If you dedicate the right amount of time and money to your new property, renovating should be a relativity easy process. By following these tips, you’ll be able to start an educational and successful renovation of your new property in no time.