Property Redevelopment: Knowing the Risks, How to Spot Them and How to Get Them Fixed
Redeveloping properties can be both immensely satisfying and immensely profitable. However, there are some pitfalls which must be avoided if you want your build to go as smoothly and cost effectively as possible.
Buying the wrong properties
Buying the correct property is essential to making profit on a redevelopment. Hidden problems such as dry rot can add huge expenses onto your build and can add extra stress to an already stressful project.
Hiring a reputable surveyor to do a full report on the building is well worth the extra spend to avoid problems arising further down the line.
Planning laws vary from place to place and just because other houses on the street have the same type of add-ons that you are hoping to build, it doesn’t mean that you will be granted planning permission.
Do your homework and enquire before you commit to buy
Inadequate market research
Property is an extremely fickle market. You need to know what is currently selling well before you make any big decisions. Which types of property are selling well at the current time? Is the area you plan to buy in on the up, or is it declining? Will any plans for buildings in the vicinity affect your properties value? There is no point buying a property and finding out the hard way that the council is erecting a recycling plant in your back garden.
Proposed plans are available at your local planning office. Make sure to look!
Taking on too much
Property development is a competitive business and mistakes are often very costly. If this is your first project, it may be worth taking on a smaller challenge, just to hone your organisational skills.
When you are more confident you can move onto larger renovations and in turn, larger profits.
Your contractors will be the ones doing the majority of the work, so don’t leave your choice to chance. Ask friends, family and search online to make sure you hire a reputable and value-for-money contractor.
Shop around and get multiple quotes for your build to guarantee the best deal.
Your first project should ideally be local. This way you are close by can quickly be on site to make decisions.
The last thing you want is travel expenses for trivial matters, like your contractor wanting to know where you want your bathroom lights fitting.
Bear these points in mind and your project should go smoothly and successfully.
This post was written by Mark Enright, a DIY enthusiast a writer for Northern Insulation, a supplier of high quality insulation.