There are a number of reasons why it makes sense to renovate a house over buying a property that is ‘ready-to-go. The first is you get the chance of discovering a home bursting with character because it still has the original features, and it can also give you a great return on your investments, especially if you choose the right property and do the right work. A great place to have guidance and support with these various matters is KJM Group.
The downside of doing this is without a good plan and poor research; the renovation project can easily end up costing you a lot of money, draining all the money you wanted to spend and also causing a lot of stress.
Spotting Renovation Potential
You should consider the following as you view the property to determine whether the house you are about to buy to renovate has the right potential:
What is the potential?
Does the property have space to extend, whether that is side or rear extension, or converting a basement, loft, or garage?
Look at the properties around… Have they succeeded in getting planning permissions to do renovations you have in mind?
Is the location of the property good for you?
How much of that work is going to be structural over surface level?
Is the renovation going to add to the value of the property? What is the price ceiling prices for houses in that area?
Before you decide to buy a house so you can renovate, make sure you keep in mind that apart from the work you are going to put in, there are some costs you have to think about:
Reconnection fees: you might have to reconnect or connect the water supply. If there was one that might have been disconnected before, you have to reconnect it. You are going to need electricity to power tools or day-to-day living for those who want to stay on site.
Council tax
Valuation fees
Professional fees: this includes building regulation approval and planning permission structural engineer reports, a variety of surveys, and other professional fees like tree surveys.
Contingency Fund
it is important to have extra cash so you can use it in dealing with anything that might come up during a renovation project (something is always going to come up)
Legal Costs
You have to work with a conveyancer or solicitor who is going to charge between 500-2000 pounds.
If you want to buy a property then renovated, then consider talking to a chartered surveyor because they are going to help. They can flag up potential issues that might affect the sale. You can even arrange a survey before you put in an offer on the property, provided the homeowner has consented to it. In most cases, it is done after the offer has been accepted.
The surveyor’s report is going to highlight any concerns and give you a rough idea of repairs that you need to make and how much you can expect them to cost. The report is going to help you in deciding whether to buy the house or not. You can easily determine whether you are better off buying the property and then renovating it.
If the chartered surveyor suspects or detects the following, then they can recommend further investigations:
Infestation
Damp
Subsidence or heave
Damage problems
The building report should also reveal the construction methods used in building the house (this can vary because there are houses that have been extended over the years). The information will come in handy during renovations to make sure the new materials and techniques are also appropriate.
There is always a solution to most structural issues out there. While this means having to spend more on your renovation, it is important to know it early so you can plan better.