Are you a first-time property investor who purchased a property that needs renovation? If so, you might need some tips on how to proceed with renovating your property. Property renovation involves a wide assortment of activities that includes structural repairs and new building work to transform a property with the intention of renovating it to the highest standards. Once property renovation has been completed and done properly by professionals, the property is likely to have gained significant value, which is the ultimate goal for every property developer.
Advantages of property renovation
Dr. Dennis Coote, a property developer with 50 years of genuine experience in the property industry who is also a surveyor and ex-full time professional property developer of over 400 properties, enumerates the top benefits of entering the profitable arena of property development:
* A typical property development deal will generate around 30,000 in profit. In a year, you only need to do between 1 and 3 deals a year to replace your existing income.
* By selling properties on, you can build a considerable amount of money you can then use to invest in additional properties.
* In property renovation, you can avoid concerns that most buy to let property owners have to put up with. By selling each renovated property, you can produce instant cash profits and eliminate tenant problems and government regulation issues.
* With the right property development deal, you will find that financing is easily obtained and readily available. Many private investors almost choose to invest in property development projects since these usually offer them an opportunity to recoup their money quicker than with a buy to let investment.
Tips to a successful property renovation
* If youre just starting out as a property developer, the most common technique is to buy a property cheap specifically a below market value property. While you can find numerous BMV properties at auctions, you can also choose to find motivated sellers. These homeowners include those who are close to getting their property repossessed and they would be willing to sell their property for a price significantly lower than its market value. Once you have acquired a BMV property, you can contract professional tradesmen who can do a good renovation job, after which you can sell the property for a profit.
* Buy a large house and convert it into an apartment. Compared to houses, apartments tend to lure more first-time home buyers since these properties usually cost a little less than a house.
* Put the property on the market at the right time and at the right price. With many consumers being inclined to rent rather to buy their own home, now is considered one of the best times to rent out a renovated apartment.
* With apartments, you can choose to sell or rent each one separately. This setup allows you to make more money than merely selling it or renting out the whole property for a single price.
While its likely that you would choose to do some of the property renovation work yourself, you may want a quicker turn around which you can achieve when you hire the services of professional property renovators.