The property market has proved to be quite lucrative for some time. Even with the uncertainties in the market, the property industry seems to always hold its own. Your decision to invest in property is aided by the fact the few property owners you know are making good profits for their investments. The trend in property investment has been to develop structures from scratch or to buy those that are already developed.There is also the less explored option in the form of renovations. Renovation entails buying old buildings, giving them an uplift and selling them for a profit. Sounds impressive right? Well, there a few things that you have to do for you to make money from renovations.
1. The location of your property matters a lot.
For you to make money from a renovated property, then you must pick a good location to invest in. A good location means that the property has to be accessible by either road or rail. It also has to be close to social amenities such as schools, shopping centers, and hospitals. You can do a good job to give a house an uplift but if it is not accessible, finding someone to buy it will be difficult. You don’t have to buy a house in an upmarket area. You can buy one in an area that is upcoming and wait for the market to peak. Buying in an upcoming area is cheaper and your return on investment will be much higher. To identify the best area to buy a house for renovation, you will have to carry out an extensivemarket research. Talk to market experts and local estate agents in that area to find what the going rate for propertyis at the moment.
2. Find cheap houses at an auction.
Another avenue for finding cheap houses for investment is at an auction. The price for houses are not that high at an auction and you could find yourself a good deal byvisiting the auction house in your location. What makes auctions ideal avenues for finding cheap houses is the fact that the owners of the houses arewilling to sell.This pushes the asking pricefor the property down and you may end up paying very little for a house. You, however, need to be careful when buying properties at an auction. Property owners may choose not to reveal the true extent of the damages to the houses that are being disposed of. Prospective buyers should, therefore, visit the property on auction with building experts to determine the extent of the damage and to estimate the cost of repairs.
3. Make a budget and stick to it.
When buying a house for renovation, you need to set your budget and stick to it. Failure to do so could see you spend much more than you had anticipated and this could eat into your profit margin. You budget includes the cost of purchasing the house and the cost of the repairs. The cost for purchasing the house is fixed but that for the repair may vary. Spend wisely on the repairs by finding the best prices for the repair materials.
4. Factor in all the legal fees in your budget.
There is more to buying a house than just paying its quoted prices. There are legal and agent fees to be paid as well.Most municipalities have fixed rates forproperties. The fees are a small percentage of the cost of the property being sold. You need to do your research to find out how much you will have to pay and factor that into your budget. Don’t forget to include the agent fees in your budget as well.
5. Get a project manager for the renovations.
The repairs will overwhelm you and you’d be wise to get a project manager for the renovations. It is particularly challenging if you are buying property in a foreign country since you will have to factor in residency and travel costs. When buying a house for sale in Turkey, check with the local land registry for trusted project managers in that region. Hire one of them to oversee the renovations for your house.