On paper, turning a profit by renovating homes is a relatively simple process. You purchase a property at a low price, apply a few strategic alterations and sell it on – pocketing a killer profit in the process.
Simple in theory, but challenging in practice.
Adding value to a home for resale takes careful planning and strategising at an advanced level. Not to mention, sourcing the property development finance you’ll need to fund the project. On the plus side, 2019’s property market is ripe for buying low and selling high in key locations across the country.
So for those looking to make good money from home renovations in 2019, here are the five most important things you’ll need to do to make it happen:
1. Organise a reliable inspection
First up, the last thing you want is to deal yourself a dud. Polishing up a property for profit is one thing – ensuring it’s safe to inhabit is something else entirely. Organising a reliable inspection ahead of time can prevent a world of headaches further down the line. Rather than simply focusing on the improvements you could make to the property, prioritise its general safety and wellness first.
2. Interior and exterior painting
There’s no renovation quite as capable as a fresh coat of paint when it comes to transforming the appeal of a property at an affordable price. Inside and out, a lick of paint (applied by a professional) can make the most incredible difference to a property’s appeal. Don’t make the mistake of cutting corners and settling for a lacklustre paint job. If the walls, ceilings and surfaces don’t look the part, the rest of the picture tends to be inconsequential.
3. Focus on curb appeal
Most prospective buyers make up their minds about a property long before stepping through the door. Or at least, their final decision can be swayed in either direction by the exterior presentation of the property. These days, curb appeal really is everything. When a home looks the part from the outside, minor imperfections inside can be overlooked and/or forgiven. From pathways to patios to planters to post lights, there’s a ton you can do to increase a property’s curb appeal without overspending.
4. The heart of the home
Back inside, no renovation stands to deliver a healthier return than a quality kitchen overhaul. Considered the undisputed heart of the home for the modern family, the appeal of the kitchen can’t be the ultimate deal-breaker. High-end kitchen renovations can be comparatively expensive, but nonetheless, guarantee an unbeatable ROI. If the current kitchen lacks the ‘wow’ factor, it’s the perfect place to start the project.
5. Bathroom updates and enhancements
Second only to the kitchen, bathroom updates and enhancements are always a wise move. Even if you don’t want to go ahead with a complete refurbishment, simply sprucing things up with a minimalist modern makeover can make all the difference. The cleaner, brighter and fresher the bathroom feels, the more likely it is to put a profit in your pocket.
Property Development Finance
Renovating a property to turn a profit is possible with even minimal funds at your disposal. Nevertheless, it’s important to avoid compromising the quality of the result due to simple financial restrictions.
Specialist property development finance services can help cover the costs of even the most challenging renovations in a flexible and affordable manner. Bridging finance, in particular, has become popular among house-flippers, providing a temporary financial solution until the improved property is sold on. At which point, the bridging loan can be repaid in one lump sum with the bare minimum borrowing costs.
As a rule of thumb, always get a minimum of five quotes for any project that calls for financial support. Better yet, reach out to an independent broker to discuss the available options. Some of the most flexible and affordable financial products for property development projects are unavailable through typical High Street lenders.
To make things easier, you can use this bridging loan calculator to help you work out the likely costs of taking out a bridging loan.
Depending on the nature and value of the property, you may have access to various types of secured loans, specialist property development finance, short-term bridging loans and so on. The more lenders you compare, the more likely you are to find your ideal funding solution.