Refurbishing a property offers an excellent opportunity for property investors to make some serious returns on their investment. Many residential purchasers do not want to undertake costly, drawn o...
Refurbishing a property offers an excellent opportunity for property investors to make some serious returns on their investment. Many residential purchasers do not want to undertake costly, drawn out refurbishment projects. This is particularly true of first time buyers whose available cash is more often than not taken up by the deposit. Additionally, mortgage lenders are sometimes reluctant to lend on property where works are required (or do so with a retention in place). As a result these properties tend to be disproportionately cheaper than the alternatives, which have already been developed. This provides an opportunity for shrewd investors who have the time and resources to undertake refurbishment projects.
The strategy behind refurbishing for profit is simple. Firstly you must identify a property where there is the potential to add value through a program of refurbishment. Secondly, you must aim to add more in value than you spend in refurbishment costs, in order to make profit.
Before committing to a programme of works, is vital that you thoroughly research the likely post-works selling price of your property. It is important to know your market well and give yourself the best chance of selling success. Once you've done this it will help you decide, for example, whether to add a bedroom or a bathroom to your property to help maximise uplift.
Repolist is the UK's larget database of refurbishment, auction and repossessed properties. Sign up to your free trial now to browse through thousands of unique projects nationwide.