Property Renovation Advice

Welcome to the Buy It, Improve It, Sell It Blog. This blog has been created to help a range of people, whether a full-time property developer or decorating the family home, this blog will provide advice on how to maximise profit and get the highest value from your home.

First things first, I would like to discuss the 5 key factors in gaining the highest profit in property development.

1. Location, Location, Location. - Location is key if you want to become a successful property developer. There is absolutely no point spending money on renovations to a property where prospective buyers are not going to want to live. When viewing the property, think to yourself "if this property was renovated to a high standard, would I live here?" If the answer is no, then it is highly likely that others will form the same opinion, renovated or not. Also, check the local amenities. A highly commended school, train station with links to London, bus stop nearby or high quality local restaurants etc. can easily add to the value of a property and appeal to a wide market. Being located on a main road will not appeal to those with pets, or those looking to retire with peace and tranquility. You must research the area before committing to buy a renovation project. Property renovation is all about thinking with your head, and not your heart.
   
2. Realise your key market and stick to it! - Once you have researched an area and found a property, you must decide on who you will eventually want to sell the property to. The location and local amenities will be a key factor in this decision. Once you have decided which market you are aiming for, you must renovate the property with this in mind, and stick to it. The elderly for example, are likely to want some outside space and nothing too modern. A young professional will usually opt for the ease of a shower rather than a bath, and an eating space in the kitchen. A separate dining room or outside space may be desirable for some, but is not essential for a young professional as they do not have the time to garden or have dinner parties.
   
3. Don't get personal. - If renovating a property to sell rather than live in, you must keep your personal tastes for your own home. You may think a bright purple wall with pink skirting is a design masterpiece but I can assure you others will not. In order to get the highest amount of interest and therefore a quick sale, the viewer must be able to picture themselves living there. If they want to have bright colours on the walls, they can paint them themselves once they have moved in. You do not have to stick to magnolia walls and beige carpets, there are a wide range of whites and pale colours to choose from, each adding a touch of class to a room. If you want to add colour, add it through furnishings which can be removed once the property has been purchased such as paintings, cushions, curtains, flowers and rugs etc.
   
4. Calculate a realistic budget and keep within it. - Make sure that once you have purchased a property for renovation, you know all of the improvements and changes you wish to make and work out a budget from that. Sarah Beeny's Price the Jobis a great book which helps you work out a budget for every job. It gives estimated prices on everything you will be buying from the cost of hiring a bricklayer right down to the costs of various light switches. With property development it is always a good idea to have a contingency budget, which is usually 10% of your main budget. This is only due to the fact that more times than none, something will be uncovered which you will have not budgeted for. However, only use your contingency if you really have to.
   
5. Never ride the market. - Never base your profit on the behaviour of the property market, no matter how strong the market is, or how certain you are that there is going to be a rise in the market. By doing this you will make a profit when the market is strong, but if it starts to weaken (as it has lately), you will end up losing a lot of money. Obviously the market will have some affect on your developing so keep a firm eye on it, but there are properties out there and profit to be made even in a weak market.