Many people consider renovation properties as a good way to invest and make an eventual profit, which they can then use to buy a larger property of their own or to create their perfect house from. However, there are some vital considerations that you need to think about before choosing to invest in a renovation property, including personal disruption to your own life and the best ways to ensure that you add value.
Should You Buy a Renovation Property?
How to find a house to renovate?
- When looking for a house, the first thing that you need to decide is whether you are buying the house to live in or to sell on, as this will determine factors such as the location of the house and the amount of work that needs doing.
- You can find the appropriate house to renovate by speaking to an estate agent, who will be able to match you with a house that suits your needs and your renovation experience.
- However, you should always survey houses that you think have potential so that you can check for hidden issues such as damp, structural problems, and a lack of plumbing or electricity. Once you decided to have work done, a professional like 5-Star Pluming can be invaluable.
What are the pros and cons?
- The advantages of buying a house to renovate are that you can design your dream house from scratch, installing the features that you would like to without having to adapt to someone else’s vision. You also have the potential to add value to the house so that you can sell it for a higher price in the future.
- However, there are risks involved such as the inability to complete a project through circumstances outside of your control, such as a lack of funding or the project having an increased scope that you did not foresee. You may also have the additional issues of being unable to add value to the property, and structural issues may affect your ability to complete the project.
What do you need to consider?
- The first thing that you need to do when investing in a renovation property is to ensure that you have enough immediate funding to support the renovation process, including hidden or unexpected costs, such as structural damage or rot. You should aim to have 20% extra funding for these costs. You should shop around for the best type of loan available if you are planning to finance it through a bank and look for areas with cheaper available housing.
- If you are starting on large renovations, you need to make sure that you obtain a building permit before you start the renovations, especially if you are adding extra rooms or porches. However, you need to remember that this could take a number of weeks to be accepted.
- You also need to make sure that you have the right skills to renovate the property yourself or know of reliable firms that can help you to manage the processes that you cannot complete yourself i.e. hiring the right forklift guys. The success of your project relies on reliable services. For instance, if you are struggling with plumbing, search for “plumbing services near me” on Porch. They provide a service which can help you to find to enable renovation success.
What can you add value to the property?
- When renovating a property, the best way to add value is to build an extension that expands the space and rooms within the house. There are many options when it comes to building an extension, and these include additional rooms, conservatories, or orangeries. However, you need to ensure that you gain the appropriate building permits for each of these from your state.
- You could also consider building a garage or porch, which many states and cities will allow you to build permit free as long as they are less than 30 inches above the grade, especially if you are able to build the project DIY. If there is already a garage attached to the house, you should consider converting this into an extra room that can give a family additional living space. · You can also add value to the house by converting the basement or attic into an extra bedroom or living space, as this will increase the number of residents that can comfortably live in the house and utilize the space more.
- Creating a more functional floor plan can also help to add value to your home, and you can do this by knocking down walls between your living room and kitchen, for example, or adding an en-suite to the largest bedroom.
- Buying a property to renovate can be an incredible experience, one which will be both challenging and wonderfully rewarding. If you’re considering buying a property to renovate it to fit your needs, keep in mind the advice above.