Property Pitfalls That Cost New Developers Profit!
It seems simple enough- buy a house, give it a makeover and sell for a profit. Viola, what could go wrong? Actually, a lot. Most properties are actually extremely complex and there are a million and things that can go wrong that you probably hadn’t even considered. Not only can things get unpredictable when you start ripping out walls, kitchens, and bathrooms but there are other things too that can catch developers out. If you’re new to the game and not experienced especially, there are a number of things that can trip you up. These are some of the mistakes you could make.
Underestimating The Amount of Work That Needs To Be Done
The most obvious mistake new developers can make is purchasing a house and underestimating how much needs to be done. It might look like just a cosmetic fix, but end up uncovering structural issues, pests, bad pipes or wiring, asbestos or a million other things. Have a survey done so you know the extent of any problems, and always have a contingency fund to help you out of any sticky situations that arise.
Overlooking The Area
So, you’ve found a great property at the right price, it will make the perfect project and you know exactly what you’d do to get it up to scratch. One problem, have you considered the area? You could create a wonderful family home, but if it’s in a bad neighborhood or on a busy road then it will bring down the price tremendously. Found somewhere that would make an ideal student property? No students will want it if it’s too far to walk to their campus, or there aren’t good transport links. The neighborhood and nearby amenities are so important, make sure the location is right for the kind of house you want to create.
Not Considering The Outdoor Space
The outdoor space such as gardens and the space surrounding the home is also crucial. Take off road parking, for example, if there’s none available and no outdoor space to create a drive or garage, you will lose the interest of a large number of buyers. These days, most people want a safe place to put their car so it’s something to bear in mind. Gardens too are essential for some homes, if you’re renovating a family style property then families will want gardens for their children and pets. If you’re planning on extending the home, for example adding an extension, conservatory or garden room then you need to think ahead and make sure you have the space for this outside.
Renovating To Your Own Tastes
When you first start developing properties, it’s very easy to focus on what YOU would like in a home. Your tastes might come through, or you might favor certain features over others because it’s what you would want. What you need to do is renovate based on the potential property buyers. Do your research and find out what people in each kind of demographic want. You need to create a house that appeals to the buyers you’re targeting, not a house that appeals to you!