When it comes to investments, everyone has different opinions about what the smart move is. If you start talking to friends or family members about where you should be putting your money, you may leave the conversation with no clearer idea than you had going in. Some people will tell you that putting money into new businesses is the best way to see a quick return on your investment, while others will tell you that this is a sure way to lose what you had. Some people will tell you that bonds are the most sensible thing to invest in, and others will tell you that you are never going to make any real money that way.
For a long time, property has been regarded as one of the most secure investments that you can make. After all, everyone will always be property, and it stands to reason that if you hold onto a home in a good area, or if you can put the work in to make it a more valuable piece of real estate than it was, you should see a great return. But with the world the way it has been over the last couple of years, and the market the way it is right now, you need to be a lot more cautious. The opportunities are very much still there, but you do not want to rush into anything half-cocked. Here are some of the most important things that you need to remember.
Set Yourself A Budget
One of the biggest temptations when it comes to buying property to sell is to go way over your budget. After all, if you think that you are going to get your money back and then some, what is the danger in putting a lot in? Well, first-timers must remember that there are risks when it comes to real estate. You can never really predict which way the market is going to go, and if you put all of your eggs into one basket, you are always putting yourself at a tremendous amount of risk.
So, before starting your project, sit down with your finances and financial advisor if you have one to talk about what a sensible budget would be. Inevitably, you may find that you end up needing to go over, so set yourself an ideal target and an absolute limit.
Research The Property Market As Much As Possible
Speaking of the market, this is one area that you are going to have to learn a lot about if you are thinking of buying property to sell. There has been a huge amount of fluctuation over the last couple of years that has left a lot of buyers and sellers in a lot of difficulty. From 2020 onwards, the property market saw tremendous inflation, and sellers who were situated outside of major cities with properties that offered a lot of space, and gardens in particular, were well-placed to make some serious money.
However, with the recent cost of living crisis, things have taken a very different turn. Prices are down, and people everywhere are getting very anxious about their mortgages. You must take this into consideration if you are looking at buying a property now. Is it really a good deal? Or are you still paying more than you would be if you took a little longer to look?
Get To Know The Neighbourhood
There is no doubt how important the property itself is in this whole equation, but a factor that some buyers overlook is the surrounding neighbourhood. Admittedly, this is not always going to be an area that you can control, but you can bet that anyone looking to buy a home is going to think about what the area is like to live in.
Try to think about the kind of buyers that you would be looking for when your property is ready to sell. Are you aiming for professionals for whom transport links are going to be one of the main attractions? Or are you going to be advertising to families, who will want to know what local schools are like and if it is a safe area to raise children? The right property in the wrong neighbourhood may end up being surprisingly difficult to sell, so take note.
Make Furnishing Choices Carefully
Many people who buy property to resell find the process of decorating the house to be one of the most enjoyable parts of the whole process. It is certainly not something you should overlook, because it can make a huge difference in the asking price. Of course, if you plan to flip the property quickly and advertise it as a fixer-upper, you may not need to think too carefully about whether or not the wallpaper needs to be changed. But if you want to find people who want to move in and get settled in right away, then there needs to be the right décor.
Try to avoid making choices that are too outlandish and feel like something that a prospective buyer might find not to their tastes. Instead, try to make classic choices that will never go out of style. When it comes to the paintwork, keep it light, but not too bright. Make sure that any tiling is consistent to avoid making people think that they are going to need to do some hard work. And when it comes to the carpeting, it should be luxury to suit the room. If you are not sure where to start, consider grey carpet for your rooms. Designer Carpet offers a range of luxury grey carpets and furnishings, and their excellent Trustpilot reviews speak for themselves.
Try Not To Make Too Many Major Changes
If you are buying a property that has seen better days, then there is always going to be a lot of work to do. This can be a lengthy and difficult process, and you may need to bring on some help in the form of contractors. We will get to that in just a moment, but first it is important to note that making major changes can be a bit of a risk. Renovation and restoration are one thing, but if you commit to alterations, you can end up on the back foot when it comes to both money and time.
Think about what is really necessary and remember that this is not a project that you want to take years of your life. If the amount of money that you are going to be spending on these major changes is going to be more than you spent on the property in the first place, you need to think carefully about whether it is really worth it.
Know What You Need From Your Contractors
There is a good chance that you are going to have to call in some professional help at some point during the process of turning the property you have bought into a home that someone will want to move into. The first step is going to be finding good ones. Look for contractors that have a lot of experience in the specific kind of work that you are doing. Then, look for good reviews.
There will be firms out there that will make big promises about being able to do the work for a low price, but the last thing you want is to be locked into a contract with people who can’t get the job done, especially if they have already started work on it. Paying someone to fix someone else’s bad work is an expense that you really do not need. What you should think about is what exactly you need from your contractors. Having a crystal-clear list of the work you want them to do will help them to give you accurate pricing. They can then tell you how long it should all take.
Don’t Neglect The Garden
Gardens and outdoor spaces have been at the top of wish lists for most people thinking of buying new homes in the last couple of years. If you have found a property which has a garden, you need to think about how you can maximise its potential. Fixer-uppers will generally have a very neglected garden at best, and what is essentially an enormous skip at worst. If people are looking to move in right away, you need to think about how the garden is going to look to them.
While this may not need to be the first thing on your to-do list, you should make sure that the garden looks presentable at the very least. Try to avoid putting too much of your own stamp on things (you don’t need to install a koi carp pond or anything like that) but think about what you could do to highlight its features. Work on the things that you can do to make it seem like a blank canvas that the new owners can work with.
Update The Appliances
Anyone who has ever bought a home before will know that it makes a huge difference to know that the white goods and various appliances have been recently replaced. Now, this can be an expense that people do not factor in until the very end of the project. If you are in the position where you are putting your savings into a property, you do not want to be dealing with thousands of pounds of additional expense without having planned for it. So, make a list of the essentials early on in the process and budget it carefully. It will probably also be worth replacing the boiler, as that is always very attractive to buyers.
Factor In Rising Energy Prices
The skyrocketing prices of energy are a huge concern to everyone at the moment. While it is hard to say how much longer this will go on for beyond the next few months with any degree of certainty, you should remember that this is not just about the energy bills. The climate crisis has made everyone much more aware of their carbon footprint. Anything that you can do to make the property more energy efficient is going to be a major advantage when it comes time to sell.
Could you think about installing solar panels on the home, for example? If this is not an option, then you should still look at what you can do to improve the insulation in the property. Remember that attics, cellars, and exterior-facing walls are often the major culprits. Double glazing on the windows is absolutely essential, and you could also think about what you could do to help keep the property cool during the summer. It may require too much work, but with record heatwaves, you may want to install air conditioning. Those temperatures are not going to be a complete one-off.
Remember To Be Patient
One of the most important things that you need to remember if you are buying a property to sell is that you cannot dictate how quickly things will go. Yes, you can have your carefully planned schedule for all the work you are going to do, but there will always be some delays and hiccups. The weather is a factor that you can’t control, and it has also been the case that there have been a delays and shortages when it comes to construction supplies.
It is also the case that you cannot predict what the market is going to do. You can keep as careful an eye on it as you can, but if the housing prices are a lot lower than you are prepared to accept, you should wait until they bounce back before you sell. Finally, something that everyone who is trying to sell a home needs to remember is that there is only so much you can do to convince people to commit. There will be someone out there who is willing to pay your price for it, but you may need to wait a little while.
Homesgofast.com is an international real estate portal and news source for Google news. Publishing international real estate, finance, homes and travel-related news and blogs for a targeted audience since 2002. Each news item is circulated to thousands of potential readers each day and is also available to the millions of people who sign up for Google news alerts. Find homes offered for sale and to rent direct from owners and some of the best real estate agents from over 35 countries