With rising house prices in London, many investors are finding it difficult to locate a property that falls within their price range. One way to overcome this problem is to begin looking at properties which are in need of renovation and refurbishment, as they are generally available for a lower purchase price. If you are considering taking this route, there are various important factors which need to be carefully considered first.
Of course, money is one of the most crucial issues to think about when deciding to purchase any property. After thorough research, you will need to add up the costs of materials and labour to complete the renovation, and subtract this from the property’s likely market value after the renovation is complete. This final value will be based on various factors, such as the asking prices of other properties in the same area. It is also advisable to deduct a further 10% to account for unforeseen problems and expenses. This figure will give you an idea of roughly how much you should be paying for the property, and will allow you to determine whether the purchase will be worth it.
Once you have made the decision to buy a property and start refurbishing it, you will need to ensure you are making it as appealing as possible for the people who will be occupying it. It is usually worth spending a little extra on modern, professionally finished kitchens and bathrooms as these are the two rooms people will be looking at the most closely. Always have your target market in mind, and be as flexible with your timescales as possible to account for any unexpected events.
If you are looking to invest in a property, whether it is ready to be occupied or requires extensive improvements and renovations, it is always useful to have a professional team on hand to advise and support you through the process. That is what we can do for you. Once the renovation is complete and your tenants have moved in, we can carry out comprehensive property and block management for all Richmond Upon Thames and London properties, helping you to optimise profits.
