By: Julia Aidan
Submitted: 2009-05-22 13:24:31 | Word Count: 684
If you're a potential developer or just a major DIY enthusiast the most common strategy is to buy a property at a cheap, lower than market price, renovate and update it and then hopefully sell it for profit a substantial.
It is vital that you do some research on any property that you are interested in. Firstly check how just long the property has been on the market for. A property that's been on the market for more than a few months suggests there isn't a great deal of profit to be made. Although it has to be said that these rules do not apply at the moment given the current slump in the housing market.
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What should you look out for when selecting your potential property. The basic rule is to ensure you're not buying an endless money pit. In an older property you should be prepared for anything, right down to most of the the wall staying on the wallpaper when stripping or huge holes behind the wall panelling. It is important that you are not afraid to make numerous visits to the property with every type of tradesman in order to know exactly what you're letting yourself in for!
Another golden rule is to always get expert advise. Roofers, timber and damp specialists and electricians will charge nothing or very little to engage their services for estimates and work schedules and will be more beneficial to you than a surveyor in the initial stages. Do not rely on the advise of friends â€" it is not them who will have to pick up the bill. Always get more than 1 quote â€" shop around you will find that prices vary enormously.
Try to estimate the scale of the project- just how much work is actually involved. Of course this depends on the property, but remember don't bite off more than you can chew. Once you have started on this project there is not a really the chance to stop without losing out financially. For a good first experience of renovating, try doing up a slightly dated property rather than a total wreck of a property. A new kitchen, bathroom, central heating, carpets and re-decoration will miraculously change something dark and not very nice and decrepit into a 'desirable residence'.
Remember you can always leave the architects, specialists and planning department to another time when confidence and funds are more plentiful and more importantly when you have both more experience and confidence.
Estimate and plan your budget. Renovating a property can be a very costly exercise so keeping a tight reign on your budget is essential. Be prepared. The phrase most heard when doing up a wreck is: It cost twice as much as I thought it would. Set yourself a realist budget and build in some contingency funding - 15 per cent of the total cost is a good guideline. Once you have set your budget stick to it. Be careful and wise on how you spend your funds. You could start your renovation with a small cash fund, and once you've re-decorated and carpeted, the overall improvement should allow a small re-mortgage. This can be used for a new kitchen and reinstating period features such as fireplaces.
If you are not skilled enough to undertake all of the work yourself, then you are going to need to employee skilled workers. This can be another area where a project can go very wrong. Decide exactly what work you want to undertake before asking for any quotations. Write a clear specification; it need not be technical, but it should detail the work you want to carry out. Additionally, remember that your builder will be spending a lot of time in your home, and therefore should be someone you feel comfortable with.
Good communication and a professional relationship is very important if you want the project to run smoothly. Reputable builders will always want to do their best work for you from the very start.
