Renovation: Before you buy that project

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renovation

Selecting the right area for your Renovation project

Depending on what you want to do with your renovation project when it is completed. will depend on which area may be the best place for you to buy a renovation project.  One of the key learnings we share with our clients at the outset, is to understand your strategy and show you how to find the best area near you in order to give you the best chance possible of delivering the results you want, in the fastest possible time.

Why does area matter?  Well, if you are planning on selling your property for a profit when it is completed, you will only make money when it’s sold – that’s stating the obvious, I hear you say!!  In my experience many people looking for renovation projects are very heavily focused on what price they buy at, rather than considering factors that will help them with the end result.

Imagine this… if you bought a 2 bed property to renovate and sell immediately for profit once you had finished.  You decide that you will convert it to a 3 bed in as this will increase the value.  When you finished you go to the agents to sell and discover that 2 beds are selling twice as quickly in your area as 3 beds, and as such the 3 bed prices are not as high as you thought they might be.

What is the potential impact?  It takes longer to get your profit and money out.  It costs you more in finance charges for holding on to it so long reducing the profit you make.  You have to keep it and rent out, leaving your profit tied up in the property.  All is not lost… however if you are buying your property to make money, either by immediately selling when it is finished, or using it as a buy to let property on completion, by doing some research on what works in the area you intend to buy before you get started, will mean much more profit for you – Happy days.

So what research should you do?  Start by looking through some of the online portals to establish what is selling and or renting well (whichever option you are choosing for your property on completion) in your preferred areas.  We have designed a method and tool to help our clients get clarity on this information quickly, purely because it is such an essential step for any investor wishing to maximise profit.

I would also suggest you speak with a number of local agents and ask them specific questions around the types, sizes and locations of properties which are the most popular and why.  You could even talk to a few local mortgage providers, to see if you can establish any trends with what and where people are buying in your area.

By doing your upfront research you will have a stronger chance of selecting the right type of property, in the right location that will deliver exactly what you set out to achieve, therefore providing you with the profit you set out to make.

For more information on how we can help you on your property investment journey, or to book a free coaching call to discuss any areas you need help visit www.thepropertymentor.com or call 01244 760213.

Next time we will look at how you can stay on budget with your renovation projects.