There’s a lot of money to be made from properties in need of some TLC. Buy at the right price, put in a little bit of time and effort, and you could be sitting on a tidy profit. However, bite off more than you can chew, and the whole experience might be more a nightmare than an investment dream.
If you’re considering taking on a renovation job, there are some facts you need to know first. Here’s the lowdown to help you.
Important Facts About Fixer-Upper Buy-to-Let Properties for Sale
- If you pay too much, you won’t turn a profit. Sounds obvious, doesn’t it? But you’d be surprised how many property investors in the UK still make the mistake of paying way over the odds; especially when they’re buying a house at auction. Before you commit to any sale, take the time to number-crunch thoroughly. That means working out exactly what needs doing in the house, and exactly how much it’ll cost.
- Get quotes. Before you buy, ask a range of builders, plumbers and electricians (depending on your requirements), to examine the property and provide a quote for the work. Don’t just accept the first price you’re given – quotes can vary massively. Likewise, don’t automatically go for the cheapest, as it’s a false economy if they mess up the project.
- Work out your level of tolerance. If you’ve done a renovation before, you’re already familiar with the process, and as such, you’ll be able to take on more complex jobs. If you’re new to it all, we strongly recommend not getting a seriously dilapidated property. Instead, look for houses that simply need cosmetic updating – re-doing the décor is an easy way to add value.
- Be realistic about timing. Recognise that renovations take time – sometimes months. This will eat into your profit, as you won’t be able to rent the property out while you’re improving it. Remember that sometimes, projects take longer to complete than initially anticipated, so you should prepare for the worst-case scenario.
- Have you factored in everything? Improving a buy-to-let property for sale requires more than just hiring a builder and doing some decorating. The little details, such as fixtures and fittings, can bring the price up. Make sure you’ve got all these costs factored into your budget, to avoid any nasty surprises.
Some Quick Tips…
- Think durable, not cheap (or flashy)! When shopping for paint, flooring, fixtures or anything for the house, look for products that will last; that won’t show the grime and which won’t break too quickly. Cheaper isn’t always better – neither is it always necessary to splash out loads of cash.
- Claim tax relief. It’s highly likely that you’ll be able to claim tax relief whilst improving the property, which does make a difference.
- Seek advice. If you haven’t done a renovation before, don’t be afraid to ask for help. Talk to experts online and off, as they’ll be able to give you valuable insider tips.
The Buy2Let Shop
If you’re looking for the perfect fixer-upper, we can help. The Buy2Let Shop have several great properties on our books, priced competitively to sell. If you’d like to find out more, visit The Buy2Let Shop website today.