Things to Consider Before Buying a Property to Renovate
Buying an underdeveloped property and then making just a couple of smart investments has always been able to produce some true real estate market jewels. But, in order for this to be possible, the property in question needs to be underdeveloped, but not without potential. If that’s not the case, the amount of money you will need to invest in renovation will render the whole project useless. But, as you would expect, finding such a property is not always easy.
Let us take a look then at a couple of considerations that will help you to find the investment that actually makes sense.
The amount of damp
The problem with moisture can be solved. But, more often than not, the amount of effort you need to invest is overwhelming. Take, for instance, all the landscaping work you need to do just to dry the foundations. Or the wreckage you need to make to realign the pipes. The good news is that the moisture problems are comparably easy to identify. The key indicators you need to pay attention to while inspecting the property are condensation, black mold, peeling of the wallpapers, musty odor.
Your skill level
Renovation for sale is an activity that can be made considerably more profitable if you are able to take part in the remodeling works and cut the need for hired labor. Do your best then, to use the next property inspection to compile the list of all the works you’ll need to perform and see to what extent your DIY skills fit into the picture. If you have a problem choosing between two properties, pick the one where the investment costs will be lower.
The state of the HVAC system
HVAC (heating, ventilating, and air conditioning) system spreads throughout the entire house and thus has a great influence on its value. This coin has two sides, though. For instance, if we take a look at Australia where flipping has become a very popular investment, we can see that quality air conditioning installation in Sydney has become one of the easiest ways of quickly increasing the property value. The realignment of air ducts is everything but. Find a way to leverage this situation to your advantage.
The previous occupancy
Although this issue looks relatively menial compared to the HVAC problems and the state of the foundation the fact remains that, when piled up, the minor repairs can have just as big of an impact on your remodeling budget as some more serious issues. That is why you need to inquire was the property you want to buy previously occupied by some responsible tenants and was it occupied at all. The houses that were desolate for more than a year should be strongly avoided.
As of recently, sustainability has become the name of the game in the real estate market. Therefore, it is in your best interest to find the property that features some sustainable properties even if this advantage comes at the cost of the upgrades you will need to make in other areas. The things you should look out for are the orientation of the windows (important for maximizing the amount of natural sunlight), insulation, efficient lighting fixtures, insulated doors, and double glazed windows.
Kitchen and bathroom
The kitchen and bathroom have always been at the very top of the first-time homebuyers’ wish-lists. The least money you need to invest in the remodeling, the better are the returns you are going to make. So, for a start, make sure that these rooms are spacious enough, so you don’t need to make expansive adjustments. Second, inspect the amount of natural sunlight. If these two requirements are checked, you can easily improve the rooms’ functionality with a couple of affordable fixtures and appliances.
Last but not least, we need to talk about the property’s location. If your investment is cut off from amenities like public transport, educational institutions, downtown areas, and shopping malls, no money you pour into remodeling will push the property past the price ceiling. That doesn’t mean you should write off such properties altogether. Just do your best to limit the amount of money you are going to invest and focus on the upgrades that produce the most tangible results.
We hope these few considerations will help you to choose the properties that have the best resale potential. The real estate market was always considered a great option for all the people who want to make their first investments without taking too much risk. Low risk, however, is still a risk. Pay attention to details we’ve just covered, and you will prevent many of the problems that wait for you further down the road.