Top tips for buying a property project

Whether looking for a new home or an investment, good renovation projects in the right location and at the right price can be hard to find.

Here are ways to increase your chances of finding a successful project:

  1. When prices rise, buyers on a budget have to look at other local areas.  This leads to less desirable areas being more popular and improving as a result.  If you can spot the bohemian areas that are subject to investment/infrastructure improvement, you can maximise the capital appreciation of your investment.
  2. Even if an undeveloped property looks like it is a reasonable price, it may cost more to renovate than somewhere that is more expensive but needs less work.  This is where you should fully research the property and area.  It makes sense to see: how long the property has been on the market; what position the seller is in; what comparable properties are selling for and what property prices are increasing by locally.  It is also very important to assess how much money it will cost to complete all works.  You may want to instruct a full structural survey and obtain costings from a reliable builder.
  3. Some properties are in such a bad state only cash buyers are able to proceed.  This can also be the case with properties of unusual construction, so if you need a mortgage, you could be more limited to what you can potentially buy.  Mortgage lenders usually expect the property to be habitable and although many people buy unmodernised properties without a problem, lenders sometimes retain some of the loan until essential works are done.
  4. Buying at auction can be one way to find a bargain.  You do have to exchange contracts immediately and have to complete within a short timescale, (usually 28 days).  Auctions can be emotive.  Be careful in the heat of the moment that you do not get carried away and pay too much.

Buying any property is such an important decision.  If Homesale Homelet can help with any advice in relation to resale or rental we would love to help, please call  01244 313 900 or email me on lisa@homesalehomelet.co.uk.  Alternatively you could visit us at Homesale Homelet 18 Grosvenor Street, Chester, CH1 2DD.

Leave a Comment